Financial Management and Accountability Amendment Regulations 2011 (No. 2)

Overview

The Financial Management and Accountability Amendment Regulations 2011 (No. 2) were introduced to bring the Tertiary Education Standards and Quality Agency (TEQSA) under the purview of the Financial Management and Accountability Act 1997 (FMA Act). This legislative instrument was enacted by the Governor-General under the authority granted by subsection 65(1) of the FMA Act, which allows for the creation of regulations to ensure the proper management of public money and property by FMA Act agencies. The problem the Regulations address is the need to impose consistent financial management standards on TEQSA, ensuring that it adheres to the financial accountability framework set out in the FMA Act. The Regulations were developed following consultation with the Department of Education, Employment and Workplace Relations, and the Office of Best Practice Regulation determined that a Regulatory Impact Statement was not necessary due to the anticipated low impact of these amendments on business and the economy. These Regulations commenced concurrently with the commencement of Parts 8 to 10 of the Tertiary Education Standards and Quality Agency Act 2011.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2011 (No. 2) extend the application of the Financial Management and Accountability Act 1997 to the Tertiary Education Standards and Quality Agency (TEQSA). The FMA Act is designed to ensure proper management of public money and public property by Chief Executives and officials of FMA Act agencies, and these Regulations bring TEQSA under the same financial management framework. This amendment ensures that TEQSA adheres to the same standards of financial management and accountability as other Commonwealth agencies covered by the FMA Act. The Regulations came into effect concurrently with Parts 8 to 10 of the Tertiary Education Standards and Quality Agency Act 2011, thereby integrating TEQSA into the existing financial management regime without the need for a Regulatory Impact Statement, as the changes are expected to have minimal impact on business or individuals.

Key Provisions

The Financial Management and Accountability Amendment Regulations 2011 (No. 2) (Regulations) introduced amendments to the Financial Management and Accountability Regulations 1997 (FMA Regulations) to bring the Tertiary Education Standards and Quality Agency (TEQSA) under the purview of the Financial Management and Accountability Act 1997 (FMA Act). The key provisions of the Regulations, primarily found in section 3, specify that TEQSA is now subject to the financial management arrangements prescribed by the FMA Act. This means that TEQSA must adhere to the financial management standards and accountability frameworks outlined in the FMA Act, ensuring proper management of public money and public property by TEQSA's Chief Executive and officials. Under the Regulations, TEQSA is required to implement and maintain financial management systems and processes that comply with the FMA Act. This includes ensuring that financial records are accurate, complete, and readily accessible for audit and review purposes. TEQSA must also establish internal controls to safeguard public funds and property, ensuring that all financial transactions are properly authorised, recorded, and reported. These obligations are designed to promote transparency and accountability in the financial operations of TEQSA. Failure to comply with the financial management requirements set out in the FMA Act and the Regulations can result in significant consequences. Section 122 of the FMA Act provides that an official who contravenes the Act, including the Regulations, may be liable for disciplinary action, including dismissal, demotion, or other penalties as determined by the responsible minister. Additionally, under section 123 of the FMA Act, any person who intentionally engages in conduct that constitutes a breach of the Act may be subject to criminal charges. The maximum penalty for such offences includes fines of up to $21,000 for individuals and $105,000 for bodies corporate, reflecting the seriousness of non-compliance with financial management laws. These provisions underscore the importance of adherence to the financial management standards set forth in the FMA Act and the Regulations.