Financial Management and Accountability Amendment Regulations 2000 (No. 3) 2000 No. 200
EXPLANATORY STATEMENT
STATUTORY RULES 2000 No. 200
Issued by the Authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Financial Management and Accountability Amendment Regulations 2000 (No. 3)
Subsection 65(1) of the Financial Management and Accountability Act 1997 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The attached Statutory Rules make regulations under subsection 65(1) of the Act to amend the Financial Management and Accountability Regulations.
The Regulations amend Schedule 1 to the Principal 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 of the Principal Regulations 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 advises that the name of the regulations is the Financial Management and Accountability Amendment Regulations 2000 (No. 3).
Regulation 2
This provides that the amendments are to commence on gazettal.
Regulation 3
This provides that Schedule 1 amends the Financial Management and Accountability Regulations 1997.
Schedule 1
[1] Schedule 1, after item 122
This item inserts a new item 122A in Schedule 1 to make the Dairy Adjustment Authority a prescribed agency. Having regard to the nature and operation of the Dairy Adjustment Authority, it is considered appropriate that it should be financially independent of the Department of Agriculture, Fisheries and Forestry for the purposes of the Act.
[2] Schedule 1, item 126
This substitutes a new item for the Insolvency and Trustee Service to specify a "Chief Executive" for the Agency instead of the "Inspector-General in Bankruptcy".
Overview
The Financial Management and Accountability Amendment Regulations 2000 (No. 3) were enacted to address certain administrative and accountability issues within the framework of the Financial Management and Accountability Act 1997. These regulations were made under the authority of the Minister for Finance and Administration and aim to ensure that financial management practices across various agencies are consistent and transparent. The regulations specifically target the amendment of the Financial Management and Accountability Regulations 1997 by updating the list of prescribed agencies in Schedule 1, thus aligning the scope of the Act more accurately with the evolving organisational structures of governmental entities. This amendment reflects a policy objective to enhance the financial independence and accountability of specific agencies, ensuring they operate effectively within the legislative framework.
Scope and Application
The Financial Management and Accountability Amendment Regulations 2000 (No. 3) amend the Financial Management and Accountability Regulations 1997, applying to various agencies prescribed under the Financial Management and Accountability Act 1997. These regulations specifically address the definition of "Agency" as outlined in section 5 of the Act, which includes Departments of State, Departments of the Parliament, and prescribed agencies. The amendments made by these regulations are intended to provide financial independence to certain agencies for effective management and accountability. For instance, the Dairy Adjustment Authority is now recognised as a separate agency, distinct from the Department of Agriculture, Fisheries and Forestry, to ensure its financial operations are managed independently. Similarly, the Insolvency and Trustee Service has a designated "Chief Executive" to replace the previous role of the "Inspector-General in Bankruptcy," enhancing its operational clarity and accountability. These changes are designed to streamline financial management practices across the specified agencies within the Commonwealth of Australia.
Key Provisions
The Financial Management and Accountability Amendment Regulations 2000 (No. 3) introduce amendments to the Financial Management and Accountability Regulations 1997, particularly focusing on the list of prescribed agencies under the Financial Management and Accountability Act 1997. Regulation 1 identifies these regulations as the Financial Management and Accountability Amendment Regulations 2000 (No. 3). Regulation 2 stipulates that the amendments will take effect upon gazette publication, thereby immediately making the changes legally binding. Regulation 3 explicitly states that Schedule 1 will amend the existing Financial Management and Accountability Regulations 1997.
Schedule 1, which is the primary component of these regulations, makes significant changes to the list of prescribed agencies. Firstly, item 122A is inserted into Schedule 1 to designate the Dairy Adjustment Authority as a prescribed agency. This amendment reflects the decision that the Dairy Adjustment Authority should operate with financial independence from the Department of Agriculture, Fisheries and Forestry under the Act. Secondly, item 126 is replaced in Schedule 1 to specify a "Chief Executive" for the Insolvency and Trustee Service, replacing the previous reference to the "Inspector-General in Bankruptcy". These changes ensure that the definitions and operations of these agencies align with the regulatory framework set out in the Act.
The obligations and requirements imposed by these regulations primarily concern the financial independence and administrative structure of the specified agencies. The designation of the Dairy Adjustment Authority as a prescribed agency necessitates that it operates with financial autonomy from the Department of Agriculture, Fisheries and Forestry. This autonomy is intended to streamline financial management and accountability processes within the agency, ensuring that its operations are distinct and transparent. Similarly, the specification of a "Chief Executive" for the Insolvency and Trustee Service instead of the "Inspector-General in Bankruptcy" clarifies the administrative leadership within the agency, providing a defined point of accountability and governance.
Failure to comply with the provisions of these regulations could result in legal repercussions. Although the Explanatory Statement does not explicitly detail specific offences or penalties, any breaches of the Financial Management and Accountability Act 1997, which these regulations amend, could lead to civil or criminal consequences. Typically, breaches of financial management regulations can attract penalties, including fines or other sanctions as prescribed by the relevant legislation. The exact penalties would depend on the nature and severity of the breach, as well as any additional provisions within the Act or other related laws.