Commonwealth Numbered Regulations - Explanatory Statements

[Index] [Search] [Download] [Related Items] [Help]

FINANCE REGULATIONS (AMENDMENT) 1993 NO. 361

Statutory Rules 1993 No. 361

Issued by the Authority of the Minister for Finance

Audit Act 1901

Finance Regulations (Amendment)

Subsection 71 (1) of the Audit Act 1901 (the Act) provides that the Governor-General may make regulations (not inconsistent with the provisions of the Act) for carrying out the provisions of the Act. The attached Statutory Rules amended the Finance Regulations made pursuant to section 71.

Finance Regulation 127A, which was made pursuant to section 71, provides, in part, that the Minister for Finance and the Secretary to the Department of Finance may give directions to officers. The regulation also provides that Departmental Secretaries may give directions to officers within their departments. Pursuant to subsection 72(2) of the Act such directions cannot be contrary to the Act or to the Regulations, and, in the case of directions given by Departmental Secretaries, cannot be contrary to directions given by either the Minister for Finance or the Secretary to the Department of Finance.

In summary, the amendments to the Regulations, which came into operation on Gazettal, are as follows:

(1)       Subregulations 5A(4) and (5) and subregulation 127A(4A) were redundant and have been repealed. The subregulations were deemed originally to operate only up to 30 September 1989.

(2)        Regulations 13 and 107A have been repealed and subregulations 78(1) and (2) amended. These provisions included procedures which covered minor administrative matters which, it is considered, are more appropriately dealt with, as necessary, by directions given by Departmental Secretaries pursuant to regulation 127A.

(3)        Regulations 80 and 120 have been amended and subregulations 78(5) and (6) repealed: partly for the same reason as referred to in paragraph (2) above, but also to give effect to earlier amendments to these Regulations which were made to facilitate the introduction of computer-based accounting systems.

(4)        To facilitate the use of computer-based accounting systems, Regulation 30 has also been repealed, Form 6 omitted from the Schedule and a consequential amendment made to regulation 84. The procedures required by these provisions were more suited to manual systems.

(5)        An amendment to regulation 126B declares persons who are employed under the Members of Parliament (Staff) Act 1984 to be subject to Part XIIA of the Audit Act 1901.

In essence, the amendment applies the same procedures for investigating losses etc to such persons as apply to officers within the Australian Public Service.

(6)       Amendments of a drafting nature have been made to regulations 44B, 126C, 131A and Form 1 in the Schedule.

Details of the amendments to the Finance Regulations are set out in the Attachment.

ATTACHMENT

Regulation 5A

Subregulation 5A(4) provided that Parts II, IIA and III of the Regulations did not apply to certain Defence establishments, during the relevant period. Subregulation 5A(5) provided that the relevant period ceased as of 30 September 1989.

Therefore the subregulations were redundant and have been repealed.

Regulation 13

Regulation 13 provided that, where a Collector of Public Moneys did not pay moneys to a Receiver of Public Moneys during the period for which the Collector was required to make payment of his or her collections, the Collector should furnish the Receiver with a "Nil" Collector's Statement (Form 1).

Regulation 13 has been repealed. The regulation dealt with what was essentially a minor administrative matter which, as such, is more appropriately dealt with by directions given by Departmental Secretaries pursuant to regulation 127A. In addition, removing the requirement for submission of a Form 1, where no moneys have been collected, will facilitate the use of computer-based means for recording moneys collected by Departments.

Regulation 30 and Form 6 in the Schedule.

Regulation 30 required a Collector or Receiver to whom a repayment of expenditure was made to forward to the appropriate Authorising Officer a statement of the repayment in accordance with Form 6.

The Form 6 procedures were designed for a manual system of accounts. To facilitate the introduction of computer-based accounting systems, regulation 13 and Form 6 have been omitted from the regulations. In future controls over the payment of collections to Receivers will be dealt with, as necessary, in directions given under regulation 127A.

Regulation 78

Subregulations 78(1) and (2) provided, in respect of the advances to which each subregulation refers, that, unless the Secretary to the Department of Finance, or a person authorised by that Secretary for the purpose, otherwise requires, the holder of an advance shall, within a prescribed period, furnish an account on the use of the advance and repay so much of the advance as remains unused. Subregulation 78(2) also contains a reference to "Form 12A".

Amendments have been made to subregulations 78(1) and (2) to provide that a Departmental Secretary or an authorised officer may approve a period longer than the prescribed period for the adjustment of an advance. Since Departmental Secretaries are given responsibility, under section 2AB of the Act, for implementing the Act and its subsidiary legislation within their respective Departments, it is considered that this administrative matter should be dealt with by directions given by those Secretaries pursuant to regulation 127A. Also, the reference to "Form 12A" in subregulation 78(2) has been omitted; this form was removed from the Regulations by Statutory Rules No 142 of 1989.

Subregulations 78(5) and (6) provided for the adjustment of advances to be recorded in "registers of advances", and subregulation 78(5) refers to Form 12A. The requirement to maintain registers of advances was also omitted from the Regulations by Statutory Rules No 142 of 1989. Subregulations 78(5) and (6) were redundant therefore and have been repealed. In future, the administrative procedures for recording the adjustment of advances will be dealt with, as necessary, in directions given by Departmental Secretaries pursuant to regulation 127A.

Regulation 80

Regulation 80 provided that where a person to whom a standing advance was made applied for reimbursement of that advance he or she had to provide an account for reimbursement to the Authorising Officer in accordance with Form 12A.

As Form 12A has been omitted from the Regulations an amendment has been made to regulation 80 to require that the advance holder provide an account for reimbursement in a manner approved by the Departmental Secretary or an authorised officer.

Regulation 84

Subregulation 84(2) provided that, where a Statement in accordance with Form 6 had not been signed by the Authorising Officer, details of the repayment could not be entered in the Appropriation Ledger.

In view of the omission of Form 6, subregulation 84(2) has been repealed and replaced with a new subregulation providing that an Authorising Officer must not credit an amount to a head of expenditure unless the amount is of a type referred to in section 36C of the Act; that is, it is either money received in repayment of expenditure or a payment made for the purpose of adjusting expenditure between departments or branches of departments.

Regulation 107A

Regulation 107A provided that a Departmental Secretary, or an officer authorised by that Secretary for the purpose, must, by instrument in writing, specify the procedures to be followed in relation to the payment of salaries, wages and allowances. We understand that the regulation was intended to apply principally to such payments as were made in cash.

As few payments of salary, wages and allowances in the nature of salary are now paid in cash the regulation was largely redundant. Accordingly, regulation 107A has been repealed. If necessary, these administrative matters will be dealt with in future in directions given pursuant to regulation 127A.

Regulation 120

Regulation 120 provided, in part, that a Paymaster must furnish to the Authorising Officer an account (Form 12) for reimbursement of his or her advance.

To facilitate the introduction of computer-based systems the Form 12 was omitted from the regulations by Statutory Rules No 142 of 1989. An amendment has been made to regulation 120 to enable the Secretary or an authorised officer to approve the manner in which the reimbursement account should be furnished.

Regulation 126B

Part XIIA of the Act sets out the procedures to be followed, and the respective liabilities of persons responsible, for losses or deficiencies in public moneys or property. The definitions of "Officer" and "Permanent Head" used in Part XIIA provide that the regulations may declare persons employed by the Commonwealth, who are not otherwise subject to Part XIIA of the Act, to be so subject, and may also declare a person to have the powers of a Permanent Head under Part XIIA in relation to those persons. Such declarations are included in regulation 126B.

Persons who, tinder the Members of Parliament (Staff) Act 1984, are engaged as consultants, or who are employed as staff of office holders or of Senators or of Members of the House of Representatives, have been declared to be subject to Part XIIA, with the Secretary to the Department of the Arts and Administrative Services as their Permanent Head. Such persons were not previously covered by Part XIIA.

This declaration permits the Secretary to the Department of the Arts and Administrative Services to investigate losses of, or damage to, public property caused by or contributed to by such persons, and to determine the extent of their liability for such losses or damage. The determination would be subject to appeal to either the Administrative Appeals Tribunal or a Court. This will mean that the same procedures as apply to officers of the Australian Public Service will apply to the persons declared.

Regulation 127A

Subregulation 127A(4A) provided that the powers to give directions under regulation 127A were unaffected by subregulation 5A(4).

Subregulation 127A(4A) has been repealed as a consequence of the proposed repeal of subregulation 5A(4).

Regulations 44B, 126C, 131A, Schedule

Amendments of a drafting nature have been made to paragraphs 44B(e), 126C(7)(a) and 131A(a) and to Form 1 in the Schedule.