Financial Management and Accountability Regulations (Amendment) 1998 No. 65
EXPLANATORY STATEMENT
STATUTORY RULES 1998 No. 65
Issued by the authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Financial Management and Accountability Regulations (Amendment)
The attached Statutory Rules make regulations under subsection 65(1) of the Financial Management and Accountability Act 1997 to amend the Financial Management and Accountability Regulations.
The amendments are to the Schedule to the regulations which lists the Agencies which are prescribed for the purposes of the definition of "Agency" in section 5 of the Act. In addition to Departments of State and Departments of the Parliament, section 5 of the Act includes in the definition of "Agency", "a prescribed Agency", being an organisational unit which is to be regarded, for the purposes of the Act as a separate Agency from the Department of State within the portfolio. Regulation 5 prescribes all such Agencies by reference to the Schedule to the regulations. The Schedule names those Agencies, defines the persons which they comprise and specifies the Agency Chief Executive.
Details of the regulations are as follows:
Regulation 1
This provides that the amendments commence on gazettal.
Regulation 2
This provides that the Financial Management and Accountability Regulations are amended as set out in regulation 3.
Regulation 3
Subregulation 3.1 inserts a new Item 111A in the Schedule to make the newly created Australian Greenhouse Office a prescribed Agency. The Office has been created to administer the Government's programmes aimed at reduction of greenhouse gas emissions.
Subregulations 3.2 and 3.3 amend Item 114 of the Schedule, which covers the Australian National Audit Office, to correct references to sections of the Auditor-General Act 1997 covering staff employed under the Public Service Act 1922 and contractors engaged under section 27 of the Auditor-General Act 1997.
Overview
The Financial Management and Accountability Regulations (Amendment) 1998 No. 65, issued under the authority of the Minister for Finance and Administration, amends the Financial Management and Accountability Regulations made pursuant to the Financial Management and Accountability Act 1997. This amendment was enacted to address the need to include newly established entities within the scope of the Act's regulatory framework. Specifically, the amendments respond to the creation of the Australian Greenhouse Office, which was established to manage the government's initiatives aimed at reducing greenhouse gas emissions. Additionally, the changes correct references in the Australian National Audit Office regulations to align with the relevant sections of the Auditor-General Act 1997 and the Public Service Act 1922. The policy objective behind these amendments is to ensure comprehensive and accurate financial management and accountability across all government agencies, including newly established offices and corrected references in existing agencies.
Scope and Application
The Financial Management and Accountability Regulations (Amendment) 1998 No. 65 applies to the Financial Management and Accountability Act 1997, affecting prescribed agencies that are considered separate from the Department of State within the relevant portfolio. This Act applies to entities that are designated as prescribed agencies in the Schedule of the regulations, which includes newly created bodies such as the Australian Greenhouse Office and existing bodies like the Australian National Audit Office. The amendments correct references to relevant sections of other Acts, ensuring that the financial management and accountability of these agencies aligns with legislative requirements. The scope of this amendment is national, as it pertains to the Commonwealth level of government in Australia. The regulation specifies the commencement date as the date of gazettal and amends the Schedule to include the Australian Greenhouse Office and correct references in the Australian National Audit Office's entry. There are no stated exclusions or thresholds in these regulations; however, the application of the Act may be further defined or restricted through subordinate instruments issued under the authority of the relevant Minister.
Key Provisions
The Financial Management and Accountability Regulations (Amendment) 1998 No. 65, issued under the authority of the Minister for Finance and Administration, primarily amend the Schedule of the Financial Management and Accountability Regulations (section 2). This amendment is made to align with the Financial Management and Accountability Act 1997 (section 1). The key changes include the addition of new entities as prescribed Agencies under the Act. For example, Regulation 3.1 introduces the Australian Greenhouse Office as a prescribed Agency (Item 111A) which was established to oversee government programs focused on reducing greenhouse gas emissions (section 3.1). Additionally, Regulation 3.2 and 3.3 correct references in Item 114 concerning the Australian National Audit Office, ensuring alignment with the Auditor-General Act 1997 (section 3.2 and 3.3).
The Act imposes specific obligations on the entities that are now prescribed as Agencies. These obligations include adherence to the financial management standards and accountability requirements set forth by the Act. This encompasses proper financial reporting, the maintenance of financial records, and compliance with auditing standards to ensure transparency and accountability in their operations (section 5). Furthermore, the prescribed Agencies must ensure that their staff and contractors are managed in accordance with relevant legislative requirements, such as those specified under the Public Service Act 1922 and the Auditor-General Act 1997.
Failure to comply with the requirements set out in the Act and its regulations can lead to significant consequences. While the regulations themselves do not explicitly state penalties, breaches of the Financial Management and Accountability Act 1997 could potentially result in administrative penalties, legal action, or other disciplinary measures depending on the severity of the breach. The exact penalties would be determined in the context of any specific breach and in accordance with the relevant provisions of the Act and other applicable laws. The overarching aim is to ensure that the prescribed Agencies maintain high standards of financial management and accountability.