EXPLANATORY STATEMENT

 

Select Legislative Instrument 2005 No. 111

 

Issued by the authority of the Minister for Finance and Administration

 

Financial Management and Accountability Act 1997

 

Financial Management and Accountability Amendment Regulations 2005 (No. 3)

 

The Financial Management and Accountability Act 1997 (the Act) provides a framework for the proper management of public money and public property that applies to Chief Executives and officials of Agencies.

 

Subsection 65(1) of 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 Regulations amend the Financial Management and Accountability Regulations 1997 (the Principal Regulations) by:

·        amending the headings to regulations 4 and 5 so as to ensure they fully illustrate the intent of the relevant regulation;

·        moving a reference to persons performing financial tasks from regulation 4 to regulation 5, where it more appropriately sits; and

·        removing the Aboriginal and Torres Strait Islander Services (ATSIS) from the list of prescribed Agencies at Schedule 1 to the Principal Regulations.

 

Details of the Regulations are set out at in the Attachment.

 

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003 (Legislative Instruments Act).

 

In relation to section 17 of the Legislative Instruments Act, the Department of the Prime Minister and Cabinet, the Department of Immigration and Multicultural and Indigenous Affairs, and ATSIS were consulted regarding the deprescribing of ATSIS. Independent legal advice was sought as to the effect of the Regulations.  The Office of Regulation Review has advised that the preparation of a Regulation Impact Statement is not required as the Regulations do not have a direct or significant indirect effect on business or restrict competition.

 

The Regulations commence:

·        on the day after registration — regulations 1, 2 and 3 and Schedule 1 (Regulations 4 and 5); and

·        on 1 July 2005 — Schedule 2 (deprescribing ATSIS).

 

 

 

ATTACHMENT

 

Details of the Financial Management and Accountability Amendment Regulations 2005 (No. 3)

 

Regulation 1 – Name of Regulations

 

This regulation provides that the title of the Regulations is the Financial Management and Accountability Amendment Regulations 2005 (No. 3).

 

Regulation 2 – Commencement

 

This regulation provides for the Regulations to commence:

·        on the day after they are registered — regulations 1, 2 and 3 and Schedule 1 (Regulations 4 and 5); and

·        on 1 July 2005 — Schedule 2 (deprescribing ATSIS).

 

Regulation 3 – Amendment of Financial Management and Accountability Regulations 1997

 

This regulation provides that the Financial Management and Accountability Regulations 1997 (the Principal Regulations) are amended as set out in Schedules 1 and 2.

 

Schedule 1 – Amendments commencing on the day after registration

 

Item [1] – Regulation 4, heading

 

This item amends the heading of regulation 4 in order to clearly indicate that the Regulation allocates persons to Departments of State and Departments of the Parliament.

 

Item [2] – Paragraph 4 (1) (f)

 

This item prepares the grammar for the change at item [3] below.

 

Item [3] – Paragraph 4 (1) (g)

 

This item removes paragraph (g) from subregulation 4 (1), being the reference to persons performing financial tasks in relation to prescribed Agencies, as item [5] provides for this matter to be addressed in Regulation 5, where it more appropriately sits.

 

Item [4] – Regulation 5, heading

 

This item amends the heading of Regulation 5 in order to clearly indicate that the Regulation relates to prescribed Agencies and their Chief Executives.

 

 

 

 

 

Item [5] – Subregulation 5 (1)

 

This item specifies the elements that constitute a prescribed Agency, and builds on Regulation 5 by including persons performing financial tasks, which was addressed in former paragraph 4 (1) (g).

 

The amendments to regulations 4 and 5 set out in Schedule 1 are further to an amendment to the Principal Regulations, made by Financial Management and Accountability Amendment Regulations 2004 (No. 3), that corrected a risk that a person performing a financial task for a prescribed Agency could be deemed a prescribed Agency in their own right. The proposed amendments to Regulations 4 and 5 would give full effect to the Principal Regulations' intent and correctly attach a person performing a financial task, for a prescribed Agency, to that prescribed Agency.

 

Schedule 2 – Amendments commencing on 1 July 2005

 

Item [1] – Schedule 1, Part 1, item 101A

 

This item removes ATSIS from the list of prescribed Agencies, which has the effect of ATSIS no longer being a separate agency under the FMA Act.  This was necessary due to the abolition of the Aboriginal and Torres Strait Islander Commission (ATSIC), with effect from 24 March 2005, by the Aboriginal and Torres Strait Islander Commission Amendment Act 2005.

 

Item [2] – Schedule 1, Part 1, note A

 

This item removes ATSIS from the list of bodies at Note A to Schedule 1, Part 1, which sets out those bodies which are both prescribed Agencies and Executive Agencies established under the Public Service Act 1999.