EXPLANATORY STATEMENT

Select Legislative Instrument 2010 No. 172

Issued by the authority of the Minister for Finance and Deregulation

Financial Management and Accountability Act 1997

Financial Management and Accountability Legislation Amendment Regulations 2010 (No. 1)

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

Subsection 65(1) of the FMA Act provides that the Governor-General may make regulations prescribing matters required or permitted by the FMA Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the FMA Act.

 

The Regulations retrospectively insert a sunset provision into two Amendment Regulations tabled in 2009, the:

·        Financial Management and Accountability Amendment Regulations 2009 (No. 2) (FMA Amendment Regulations 2009 No. 2); and

·        Financial Management and Accountability Amendment Regulations 2009 (No. 4) (FMA Amendment Regulations 2009 No. 4);

that dealt with transitional issues, and preserved the operation of acts done, and instruments made, under the authority of the then FMA Act, Financial Management and Accountability Regulations 1997, Financial Management and Accountability Orders 2005 and the Financial Management and Accountability Orders 2008 that were in place, or had applicable savings‑provisions, before the commencement of the FMA Amendment Regulations 2009 No. 2 and FMA Amendment Regulations 2009 No. 4.

Commencement

Schedule 1 amends the FMA Amendment Regulations 2009 No. 2 to insert a sunset provision from 19 March 2009 for the transitional arrangements to cease to apply on 1 July 2010. Schedule 2 amends the FMA Amendment Regulations 2009 No. 4 to insert a sunset provision from 30 June 2009 for the transitional arrangements to cease to apply on 1 July 2010.

FMA Act Agencies have been consulted on removing these transitional arrangements. The transitional provisions provided time for FMA Act Agencies to update internal procedures and controls before the full effect of the FMA Amendment Regulations 2009 No. 2 and FMA Amendment Regulations 2009 No. 4 commenced. FMA Act Agencies have had over 12 months to update their internal procedures and controls and the savings and transitional provisions can now cease to apply.

FMA Act Agencies are not adversely affected by retrospectively inserting a sunset provision with a future date of 1 July 2010.

Legislative Instruments Act 2003

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003. In accordance with section 17 of the Legislative Instruments Act 2003, the Department of Finance and Deregulation has consulted with FMA Act Agencies on the development of the Regulations.

Best Practice Regulation Preliminary Assessment

A Best Practice Regulation Preliminary Assessment was undertaken in accordance with the guidance issued by the Office of Best Practice Regulation. This assessment indicated that a regulation impact statement was not required, as the Regulations only affect FMA Act Agencies, and do not affect the private sector.