EXPLANATORY STATEMENT
Select Legislative Instrument 2011 No. 175
Norfolk Island Act 1979
Norfolk Island Regulations 2011
Commonwealth Financial Officer
Subsection 51D (1) of the Norfolk Island Act 1979 (the Act) provides that regulations may provide that there is to be a Commonwealth Financial Officer for Norfolk Island.
The Regulation allows the Commonwealth Financial Officer for Norfolk Island to be appointed by the Governor-General, and will hold office at his or her pleasure.
Under the Regulations, the Commonwealth Financial Officer would have access to all relevant financial accounts, records, documents and information related to the Norfolk Island Administration or a Territory authority.
The Commonwealth Financial Officer is intended to be an optional appointment, to be made at the discretion of the Governor-General. It is intended that such an appointment may be made in the event that the Governor-General is of the view that Norfolk Island would benefit from Commonwealth assistance.
Norfolk Island may benefit from Commonwealth assistance, for example in the implementation of the financial framework obligations under Part VI Division 1of the Act, which enables the implementation of a contemporary financial management framework that will assist the Norfolk Island Government to meet the expectations of its community and to plan for the future. This includes provisions to establish a customised and proportionate financial framework which provides for the responsible management of public money and public property, preparation of budgets, financial reporting, annual reports and procurement.
For subsection 51D (3) of the Act, the Commonwealth Financial Officer for Norfolk Island is entitled to:
a) at all reasonable times to full and free access to all accounts, records, documents and papers relating directly or indirectly to:
(i) the receipt or payment of money by the Administration or a Territory authority; or
(ii) the acquisition, receipt, custody or disposal of assets by the Administration or a Territory authority; and
b) to make copies of, or take extracts from, any accounts, records, documents or papers mentioned in paragraph (a).
Additional functions and powers may be prescribed by regulation.
The Norfolk Island Government and Norfolk Island Administration were consulted in the development of the regulations. All parties consulted agreed with the Regulation.
Overview
The Norfolk Island Act 1979 was enacted to establish the legislative framework for the governance of Norfolk Island, an external territory of Australia. The Norfolk Island Regulations 2011 were introduced to provide further detail on the operation of the Act, particularly regarding financial management and oversight. These regulations address a gap by allowing for the appointment of a Commonwealth Financial Officer for Norfolk Island at the discretion of the Governor-General, to assist in the implementation of a contemporary financial management framework. The objective is to ensure responsible management of public money and assets, preparation of budgets, financial reporting, and procurement, thereby supporting the Norfolk Island Government in meeting community expectations and planning for the future. The regulations were developed in consultation with the Norfolk Island Government and the Norfolk Island Administration, who concurred with the proposed measures.
Scope and Application
The Norfolk Island Act 1979, as supplemented by the Norfolk Island Regulations 2011, provides for the appointment of a Commonwealth Financial Officer for Norfolk Island, an optional role determined by the Governor-General's discretion. This role is intended to offer Commonwealth assistance to Norfolk Island, particularly in implementing the financial framework obligations outlined in Part VI Division 1 of the Act, which aims to establish a contemporary financial management framework. This framework facilitates the responsible management of public money and property, budget preparation, financial reporting, annual reporting, and procurement. The Commonwealth Financial Officer, appointed by the Governor-General and serving at their pleasure, is granted extensive access to all relevant financial accounts, records, documents, and information pertaining to the Norfolk Island Administration or any Territory authority. Additionally, the Officer is entitled to make copies or extracts from these documents. The Regulations were developed in consultation with the Norfolk Island Government and the Norfolk Island Administration, with all parties in agreement. The scope of the Act and Regulations is confined to Norfolk Island, and while the Act may extend or restrict application through subordinate instruments, the primary focus remains on enhancing Norfolk Island's financial management capabilities through potential Commonwealth assistance.
Key Provisions
The Norfolk Island Regulations 2011, made under the Norfolk Island Act 1979, provide for the appointment of a Commonwealth Financial Officer for Norfolk Island. This role is optional and discretionary, to be appointed by the Governor-General when deemed necessary (section 51D(1)). The primary function of the Commonwealth Financial Officer is to assist Norfolk Island in meeting its financial management obligations, particularly in the implementation of a modern financial framework as outlined in Part VI Division 1 of the Act. This framework is intended to ensure responsible management of public money and property, preparation of budgets, financial reporting, and procurement (section 51D(3)).
The Commonwealth Financial Officer, once appointed, has extensive access rights to all relevant financial accounts, records, documents, and information related to the Norfolk Island Administration or any Territory authority (section 51D(3)(a)). This includes access to details regarding the receipt or payment of money and the acquisition, receipt, custody, or disposal of assets by the Administration or a Territory authority. Additionally, the Officer is entitled to make copies of or take extracts from any such accounts, records, documents, or papers (section 51D(3)(b)). These provisions ensure that the Officer can effectively carry out their duties to oversee and improve financial management practices on Norfolk Island.
The obligations imposed by the Regulations include the necessity for the Commonwealth Financial Officer to be appointed by the Governor-General and to serve at the pleasure of the Governor-General. This appointment is intended to provide the Norfolk Island Administration with the expertise and oversight required to comply with financial management standards and to facilitate the development of a robust financial framework. The Regulations also stipulate that any additional functions and powers for the Commonwealth Financial Officer may be prescribed by further regulation, ensuring flexibility in addressing the evolving needs of Norfolk Island's financial governance.
In terms of consequences for breaches, the Regulations do not explicitly outline specific offences or penalties. However, the importance of the Commonwealth Financial Officer's role in ensuring compliance with financial management obligations implies that any failure to fulfil these duties could lead to broader legal and financial repercussions for the Norfolk Island Administration. Given the discretionary nature of the appointment, the primary recourse in case of non-compliance or inadequate performance would likely involve the Governor-General's authority to remove or not renew the appointment of the Commonwealth Financial Officer.