EXPLANATORY STATEMENT
Issued by the Australian Communications and Media Authority
Telecommunications (Approved Auditors and Auditing Requirements) Determination Variation 2011 (No 1)
Telecommunications Act 1997
Purpose
The purpose of the Telecommunications (Approved Auditors and Auditing Requirements) Determination Variation 2011 (No 1) is to amend the Telecommunications (Approved Auditors and Auditing Requirements) Determination 2006 (the Determination) so that it prescribes approved auditing requirements that are appropriate to their purpose under, and consistent with the terms of, the Telecommunications Act 1997 (the Act).
Legislative Basis
Telecommunications industry bodies and associations are eligible to apply for reimbursement of the costs of developing consumer-related industry codes in accordance with Division 6A in Part 6 of the Act.
Industry bodies or associations must first make a written application for a declaration of eligibility for reimbursement, and, after submission of the completed code, may submit a claim for reimbursement, by submitting a written statement itemising the costs incurred in developing the code. The application and the statement of costs are required to be accompanied by a written declaration by an approved auditor that he or she is of the opinion that the statement of costs complies with the approved auditing requirements. Under subsection 136C(5) of the Act, the Australian Communications and Media Authority (ACMA) has powers to make a determination specifying the persons who are approved auditors, and the requirements that are to be the approved auditing requirements.
Consultation
The draft instrument was placed on the ACMA website for a period of six weeks, during which members of the public were invited to comment on the draft instrument. In addition, the draft instrument was sent to Communications Alliance, The Institute of Chartered Accountants, CPA Australia, The National Institute of Accountants, The Australian Accounting Standards Board, Department of Broadband, Communication and the Digital Economy, and Internet Industry Association and those organisations were allowed six weeks to provide comments to the ACMA on the draft instrument. The ACMA has taken into account the comments received on the draft instrument.
Operation
The instrument varies section 6 of the Determination to specify new requirements for a statement of costs submitted under section 136C(1)(e)(i) of the Act. An approved auditor must make a written declaration that he or she is of the opinion that such a statement of costs complies with the requirements. The previous requirements were not appropriate for this purpose. The new requirements are practical and consistent with their statutory purpose.
NOTES ON THE DRAFT INSTRUMENT
Section 1 Name of instrument
Section 1 provides that the name of the instrument is the Telecommunications (Approved Auditors and Auditing Requirements) Determination Variation 2011 (No 1).
Section 2 Commencement
Section 2 provides that the instrument commences on the day after it is registered on the Federal Register of Legislative Instruments.
Section 3 Variation of Telecommunications (Approved Auditors and Auditing Requirements) Determination 2006
Section 3 provides that variations to the Determination are effected by Schedule 1 of the instrument.
Schedule 1 Variations
[1] Section 3
This variation inserts a new definitions section, which adds definitions of the terms ‘refundable cost’ and ‘statement of costs’, consistent with their meaning in the Act.
[2] Section 4
This variation inserts “the” before ACMA, in order to be consistent with the usage in the Act.
[3] Section 6
This variation specifies a new set of approved auditing requirements. The variation inserts requirements for a statement of costs to include only refundable costs, and for the costs included to be accurate and supported by relevant documentary evidence demonstrating that the costs have been incurred.
Overview
The Telecommunications (Approved Auditors and Auditing Requirements) Determination Variation 2011 (No 1) was enacted to amend the Telecommunications (Approved Auditors and Auditing Requirements) Determination 2006 under the Telecommunications Act 1997. This variation aims to ensure that the approved auditing requirements are appropriate and consistent with the statutory purposes as outlined in the Telecommunications Act 1997. The determination was made by the Australian Communications and Media Authority (ACMA) to address the need for updated and precise auditing requirements for industry bodies and associations eligible for reimbursement of costs related to developing consumer-focused industry codes. The ACMA took into account comments from various stakeholders, including professional accounting bodies and industry associations, to refine the auditing requirements to better serve their statutory purpose.
The purpose of this variation is to specify new requirements for statements of costs, ensuring that only refundable costs are included and that these costs are accurate and supported by relevant documentation. By making these changes, the determination seeks to enhance the reliability and transparency of the reimbursement process for industry bodies and associations. The instrument commenced on the day after its registration on the Federal Register of Legislative Instruments, ensuring that the updated auditing requirements are promptly implemented to facilitate efficient and compliant reimbursement processes.
Scope and Application
The Telecommunications (Approved Auditors and Auditing Requirements) Determination Variation 2011 (No 1) amends the Telecommunications (Approved Auditors and Auditing Requirements) Determination 2006 to align the approved auditing requirements with the provisions of the Telecommunications Act 1997. This instrument applies to telecommunications industry bodies and associations seeking reimbursement for developing consumer-related industry codes, as well as to approved auditors who must declare that statements of costs comply with the specified auditing requirements. The amendment specifically targets the requirements for a statement of costs to ensure it includes only refundable costs and that these costs are accurately documented. The instrument operates within the jurisdiction of the Commonwealth of Australia and applies to any entity or individual involved in the reimbursement process for telecommunications-related industry codes. No specific exclusions or exemptions are outlined in the text, and the application of the Act extends through subordinate instruments as necessary.
Key Provisions
The Telecommunications (Approved Auditors and Auditing Requirements) Determination Variation 2011 (No 1) introduces several key provisions that modify the approved auditing requirements under the Telecommunications Act 1997. The primary operative sections of this variation (sections 3 and 6 of Schedule 1) concern the definition of terms and the specification of new approved auditing requirements. These changes aim to ensure that the auditing requirements are practical and aligned with the statutory purpose of the Act.
Section 3 of Schedule 1 adds a new definitions section to clarify terms such as 'refundable cost' and'statement of costs'. This section ensures that there is a clear understanding of what constitutes allowable expenses and the documentation required for these costs. Section 6 specifies new requirements for a statement of costs. These requirements mandate that the statement must only include refundable costs and that these costs must be accurate and supported by relevant documentary evidence. This evidence must demonstrate that the costs have indeed been incurred.
The obligations imposed by the Act on industry bodies and associations are clear. They must first apply for a declaration of eligibility for reimbursement, followed by submitting a written statement of costs when claiming reimbursement. These submissions must be accompanied by a written declaration from an approved auditor confirming that the statement of costs complies with the approved auditing requirements. This ensures transparency and accountability in the reimbursement process.
Failure to comply with these requirements can lead to significant consequences. The Act provides for both civil and criminal penalties for non-compliance. The specific penalties are not detailed in the explanatory statement, but the potential for financial penalties and legal action underscores the importance of adhering to the approved auditing requirements. Non-compliance could result in the denial of reimbursement claims and may also lead to further investigation and legal proceedings.