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					Financial Management and Accountability
Orders 2008
I, LINDSAY TANNER, Minister for Finance and Deregulation, make these Orders
under section 63 of the Financial Management and Accountability Act 1997.

Dated May 2nd 2008




LINDSAY TANNER
Minister for Finance and Deregulation
                                                                             Contents




                                                                                Page

Contents
Part 1     Preliminary                                                             1
1.1        Name of Orders                                                           1
1.2        Commencement                                                             1
1.3        Revocation of Financial Management and Accountability Orders
           2005                                                                     1
1.4        Definitions                                                              1

Part 2     Special responsibilities of Chief Executives                            2
2.1        Audit Committee (Act, section 46)                                        2
2.2        Fraud control report to responsible Minister (Act, section 45;
           FMA Regulations, regulation 19)                                          2
2.3        Accounts and records (Act, section 48)                                   3
2.4        Estimates                                                                3
2.5        Use of a Commonwealth credit card for particular purposes (Act,
           section 60; FMA Regulations, regulation 21)                              3
2.6        Chief Executive may delegate powers                                      4
2.7        Finance Chief Executive may delegate powers                              4

Part 3     Care and custody of public money                                        5
3.1        Prompt banking of received money (Act, section 10)                       5
3.2        Public money in non-bankable currency (Act, section 10)                  5
3.3        Withdrawals from official accounts and internal transfers
           between accounts (Act, section 13)                                       5

Part 4     Care and custody of public property                                     7
4.1        Custody etc of securities (Act, section 40)                              7

Part 5     Business Operations                                                     8
5.1        Business operation of an Agency                                          8

Part 6     Transferring Leave Entitlements                                         9
6.1        Payments for leave entitlements when employees move
           between Agencies etc                                                     9

Part 7     Savings and Transitional Provisions                                    11
7.1        Actions taken and instruments made under the 2005 Orders               11
7.2        Payments made before registration under order 6.4 of the 2005
           Orders                                                                 11
7.3        References to 2005 Orders in instruments                               11
7.4        Meaning of 2005 Orders                                                 11




                                                                                   ii
                                                                       Preliminary




Part 1                    Preliminary

1.1      Name of Orders
  1.1.1 These Orders are the Financial Management and Accountability Orders
        2008.
         Note The requirements for annual financial statements, prepared by the Chief Executive of
         an Agency under section 49 of the Financial Management and Accountability Act 1997, are
         specified in separate Orders made under subsection 63 (1) of the Act.


1.2      Commencement
  1.2.1 These Orders commence on 1 July 2007.
         Note Transitional and savings provisions, set out in Part 7 of these Orders, relate to the
         retrospective operation of these Orders, in particular Part 6 “Transferring Leave
         Entitlements”.


1.3   Revocation of previous Orders
  1.3.1 The Financial Management and Accountability Orders 2005 are revoked.
         Note Transitional and savings provisions, relating to the previous Orders, are set out in
         Part 7 of these Orders.


1.4      Definitions
  1.4.1 In these Orders:
         Act means the Financial Management and Accountability Act 1997.
         Finance Chief Executive means the Secretary of the Department of Finance
         and Deregulation.
         FMA Regulations means the Financial Management and Accountability
         Regulations 1997.
         responsible Minister, in relation to an Agency, means the Minister
         responsible for the Agency.
         Note Other words and phrases used in these Orders are defined in section 5 of the Act,
         including Agency, official and official account.




                        Financial Management and Accountability Orders 2008                     1
                                   Special responsibilities of Chief Executives




Part 2                 Special responsibilities of Chief
                       Executives

2.1      Audit Committee (Act, section 46)
  2.1.1 The terms of reference for an Audit Committee established under section 46
        of the Act must include particulars of membership, frequency of meetings,
        functions and responsibilities of the Committee.
  2.1.2 The functions and responsibilities of an Audit Committee include:
        (a) the approval of internal annual and strategic audit plans of the Agency;
            and
        (b) the review of all audit reports involving matters of concern to senior
            management of the Agency, including the identification and
            dissemination of good practices; and
        (c) the provision of advice to the Chief Executive on action to be taken on
            matters of concern raised in a report of the internal auditors or in a
            report of the Auditor-General concerning the Agency; and
        (d) as far as practicable, the coordination of audit programs conducted by
            internal auditors and the programs conducted by the Auditor-General;
            and
        (e) the provision of advice to the Chief Executive on the preparation and
            review of financial statements of the Agency.
  2.1.3 In order 2.1.2:
        Auditor-General means the Auditor-General for the Commonwealth under
        section 7 of the Auditor-General Act 1997.

2.2      Fraud control report to responsible Minister (Act, section 45;
         FMA Regulations, regulation 19)
  2.2.1 A Chief Executive must prepare a report on fraud control for the Agency at
        least every 2 years, as referred to in the Commonwealth Fraud Control
        Guidelines.
  2.2.2 The report must include the following documents, prepared having regard to
         the Commonwealth Fraud Control Guidelines:
        (a) a report providing:
                (i) an assessment of risks for fraud on the Agency; and
               (ii) if a fraud control plan has been previously prepared — an
                    assessment of that previous fraud control plan;
        (b) a fraud control plan prepared having regard to information contained in
              the assessment report prepared under paragraph (a).
  2.2.3 As soon as practicable after preparing the report, the Chief Executive must
        give the report to the Agency’s responsible Minister.



                     Financial Management and Accountability Orders 2008          2
                                     Special responsibilities of Chief Executives



  2.2.4 In orders 2.2.1 and 2.2.2:
        Commonwealth Fraud Control Guidelines means the guidelines made
        under regulation 19 of the FMA Regulations, as in force or existing when
        these Orders commence.

2.3     Accounts and records (Act, section 48)
  2.3.1 For the purposes of section 48 of the Act, a Chief Executive must ensure
         that the Agency’s accounts and records properly record and explain the
         Agency’s transactions and financial position, and, without limiting the
         generality of this obligation, must ensure that the accounts and records are
         kept in a way that:
        (a) records the receipt and expenditure of public money on a daily basis;
              and
        (b) enables information to be provided to the Finance Chief Executive
              when required by the Finance Chief Executive:
               (i) on Commonwealth financial affairs to be included in budget and
                    related documentation; and
              (ii) on the financial affairs of the Agency for the preparation of
                    aggregate reporting for the Commonwealth; and
        (c) enables the preparation of financial statements in accordance with
              section 49 of the Act; and
        (d) allows those financial statements to be conveniently and properly
              audited in accordance with the Act; and
        (e) ensures that moneys are only expended for the purpose for which they
              are appropriated; and
         (f) ensures the limit on any appropriation is not exceeded.
        Note The Agency’s accounts and records are subject to separately prepared Orders made by
        the Finance Minister (and generally updated annually) in relation to the preparation of
        financial statements.


2.4     Estimates
  2.4.1 A Chief Executive must prepare budget estimates for each financial year,
        and for any other periods directed by the Finance Chief Executive.
  2.4.2 The estimates must be:
        (a) prepared in the form specified by the Finance Chief Executive; and
        (b) provided as required by the Finance Chief Executive.

2.5     Use of a Commonwealth credit card for particular purposes
        (Act, section 60; FMA Regulations, regulation 21)
  2.5.1 A Chief Executive may:
        (a) authorise a holder of a Commonwealth credit card to use the
            Commonwealth credit card to pay a claim that includes both official
            and coincidental private expenditure; and
        (b) specify arrangements for the holder of the Commonwealth credit card
            to reimburse the Commonwealth for that coincidental private
            expenditure.
                       Financial Management and Accountability Orders 2008                   3
                                     Special responsibilities of Chief Executives



  2.5.2 The holder of the Commonwealth credit card must pay to the
        Commonwealth the amount paid by the Commonwealth for the coincidental
        private expenditure.
  2.5.3 The amount payable to the Commonwealth under this order is recoverable
        as a debt in a court of competent jurisdiction.
  2.5.4 In this order:
         Commonwealth credit card:
        (a) means a Commonwealth credit card as defined in subsection 60 (3) of
             the Act; and
        (b) includes a Commonwealth credit card number mentioned in
             subsections 60 (1) and (2) of the Act.
        Note Under section 60 of the Act, use of a Commonwealth credit card or a
        Commonwealth credit card number otherwise than for official purposes, or not in
        accordance with an authorisation under order 2.5 of these Orders, carries a penalty.


2.6     Chief Executive may delegate powers
  2.6.1 The Chief Executive of an Agency may, by written instrument, delegate to
        an official any of the Chief Executive’s powers and functions under these
        Orders (including powers delegated to the Chief Executive by the Finance
        Chief Executive), but not including this power of delegation.
  2.6.2 In exercising powers or functions under the delegation, the official must
        comply with any directions of the Chief Executive.

2.7     Finance Chief Executive may delegate powers
  2.7.1 The Finance Chief Executive may, by written instrument, delegate to an
        official any powers and functions given to the Finance Chief Executive
        under these Orders.
  2.7.2 In exercising powers or functions under the delegation, the official must
        comply with any directions of the Finance Chief Executive.
        Note Order 2.7 is included, to avoid doubt, in relation to specific powers and functions of
        the Finance Chief Executive, such as under Order 2.3 (Estimates) and Order 5.1 (Business
        operation of an Agency)




                       Financial Management and Accountability Orders 2008                      4
                                               Care and custody of public money




Part 3                    Care and custody of public money

3.1      Prompt banking of received money (Act, section 10)
  3.1.1 An official who receives public money in a bankable currency (including
         money that becomes public money upon receipt) must bank the money as
         soon as practicable, but in any case not later than:
        (a) the next banking day; or
        (b) a banking day approved by the Chief Executive.
  3.1.2 In order 3.1.1:
        banking day means a day on which a bank is open to the public for general
        banking business.
         Note 1 Order 3.1 of these Orders is required by section 10 of the Act, which imposes a
         penalty for a failure to bank public money as required by these Orders.
         Note 2 Section 10 of the Act provides that money includes cheques and similar
         instruments.
         Note 3 Section 11 of the Act provides that an official must not deposit public money in
         any account other than an official account.


3.2      Public money in non-bankable currency (Act, section 10)
  3.2.1 An official who receives public money in a non-bankable currency
        (including money that becomes public money upon receipt) must ensure the
        protective custody of that money.
  3.2.2 In order 3.2.1:
         non-bankable currency means:
        (a) a currency that cannot be banked; or
        (b) a currency the banking of which would, in the opinion of the Chief
             Executive of the Agency by which it is received, involve significant
             costs or administrative difficulty.
         Note 1 Order 3.2 of these Orders is required by section 10 of the Act, which imposes a
         penalty for a failure to bank public money as required by these Orders.
         Note 2 Section 10 of the Act provides that money includes cheques and similar
         instruments.


3.3      Withdrawals from official accounts and internal transfers
         between accounts (Act, section 13)
  3.3.1 An official may withdraw an amount from an official account for the
        purposes of depositing the amount into another official account, if no
        appropriation and drawing right is relied on in relation to the transfer.
  3.3.2 An official may withdraw an amount from an official account for the
        purpose of establishing or reimbursing a cash advance established for a
        purpose, and maintained in a manner, approved by the Chief Executive.


                        Financial Management and Accountability Orders 2008                  5
                                             Care and custody of public money



3.3.3 An official may withdraw an amount from an official account for the
      purpose of spending that amount under an appropriation, if the official has
      been issued with a relevant drawing right under paragraph 27(1)(a) of the
      Act.
3.3.4 In order 3.3.2:
      cash advance means public money, in the custody or control of an official,
      and held outside an official account, for a purpose of making payments of
      public money in cash.
      Note 1 Orders 3.3.1 and 3.3.2 enable officials to effect internal transfers (including within
      an agency) of public money in circumstances in which no real or notional payment is being
      made and no appropriation is required, for example, where an Agency transfers money
      from one of their own official accounts to another (or to the custody of an official), or
      money is transferred from the Official Public Account to an Agency's account.

      Note 2 Under section 13 of the Act, a withdrawal of money from an official account that
      is not authorised by these Orders carries a penalty.




                      Financial Management and Accountability Orders 2008                       6
                                              Care and custody of public property




Part 4                    Care and custody of public property

4.1      Custody etc of securities (Act, section 40)
  4.1.1 An official who receives any bonds, debentures or other securities
         (collectively known for the purpose of this order as securities) must:
        (a) issue a receipt for the securities received; and
        (b) maintain a register of all securities received; and
        (c) ensure the protective custody of the securities.
         Note Order 4.1 is required by section 40 of the Act, which imposes a penalty for a failure
         to deal with securities in accordance with these Orders.




                        Financial Management and Accountability Orders 2008                     7
                                                             Business Operations




Part 5                    Business Operations

5.1      Business operation of an Agency
  5.1.1 The Finance Chief Executive may issue a determination specifying the
        activity or activities of an Agency that are to be treated as a business
        operation of an Agency.
         Note The determination of activities as a business operation of an Agency has implications
         for reporting and audit under Orders made by the Finance Minister in relation to the
         preparation of financial statements.




                        Financial Management and Accountability Orders 2008                     8
                                                   Transferring Leave Entitlements




Part 6                     Transferring leave entitlements
6.1      Payments for leave entitlements when employees move
         between Agencies etc
Broad application of the Order
   6.1.1 This order applies if
         (a) an employee in an Agency (the old employer) moves to another
             Agency, a Commonwealth authority or the High Court of Australia,
             (the new employer); and
         (b) some or all of the employee’s leave entitlements are transferred to the
             new employer as part of the employee’s move; and
         (c) the move is not a direct consequence of the transfer of a government
             function.
         Note Agency is defined in section 5 of the Act. It includes a Department of State, a
         Department of the Parliament and an Agency prescribed by the FMA Regulations.
Payment within 30 days of a correctly rendered invoice
   6.1.2 Within 30 days of the receipt of a correctly rendered invoice from the new
          employer, the old employer must pay to the new employer an amount equal
          to the sum of the value, worked out on the basis of the employee’s salary
          immediately before leaving the old employer, of:
         (a) the employee’s annual leave entitlement at that time; and
         (b) 95% of the employee’s long service leave entitlement at that time.
         Note Where, for example, an employee has moved from the old employer to the new
         employer for a short period (and will be returning to the old employer), the employers may
         agree that it is not efficient for the new employer to send an invoice and for the old
         employer to pay an amount under order 6.1.2 (as long as the employee will not be deprived
         of access to relevant leave).
Agencies to co-operate
   6.1.3 The old employer must give reasonable assistance necessary for the new
         employer to prepare the invoice for the purposes of order 6.1.2, including
         information in writing about the employee’s entitlements.
Specific rules affecting members of the Defence Force
   6.1.4 If:
         (a) the employee was engaged in the old employer as a member of the
               Defence Force; and
         (b) the employee is engaged in the new employer in a capacity other than
               as a member of the Defence Force; and
         (c) the employee is not legally entitled to any long service leave
               immediately before becoming engaged in the new employer; and
         (d) the employee’s salary, immediately before moving from the old
               employer, is greater than the employee’s salary immediately on moving
               to the new employer;
          the value of the employee’s long service leave entitlement is to be worked
          out on the basis of the employee’s salary immediately on moving to the new
          employer.
                         Financial Management and Accountability Orders 2008                    9
                                                    Transferring Leave Entitlements



Definitions for transferring leave entitlements
   6.1.5 In this order:
          Commonwealth authority has the same meaning as in the Commonwealth
          Authorities and Companies Act 1997.

          employee includes a member of the Defence Force, a statutory
          office-holder, and a person engaged under one of the following Acts (as
          amended from time to time):
                   Air Force Act 1923;
                   Australian Bureau of Statistics Act 1975;
                   Australian Federal Police Act 1979;
                   Australian Prudential Regulation Authority Act 1998;
                   Australian Securities and Investments Commission Act 2001;
                   Australian Security Intelligence Organisation Act 1979;
                   Commonwealth Electoral Act 1918;
                   Defence Act 1903;
                   Director of Public Prosecutions Act 1983;
                   Family Law Act 1975;
                   Naval Defence Act 1910;
                   Governor-General Act 1974;
                   High Court of Australia Act 1979;
                   Intelligence Services Act 2001;
                   Members of Parliament (Staff) Act 1984;
                   Office of National Assessments Act 1977;
                   Parliamentary Service Act 1999; and
                   Public Service Act 1999.
          Note FMA Regulation 4(1)(c) provides that “a person employed, under the Members of
          Parliament (Staff) Act 1984, on the staff of an office-holder or a Senator or Member is
          allocated to the Department of State to which the money out of which the person’s
          remuneration is paid is appropriated”. That agency is currently the Department of Finance
          and Deregulation.

          long service leave entitlement, for an employee, means:
         (a) the period of long service leave to which the employee is legally
              entitled; or
         (b) if the employee is not legally entitled to any long service leave, the
              amount worked out by multiplying the notional amount of long service
              leave to which the employee is entitled for a year of service by the
              weighting factor set out in the following table that applies to the
              number of years of service the employee has completed.

                Years of service                                  Weighting factor
                Less than 1                                             0.5
                At least 1 but less than 2                              0.6
                At least 2 but less than 4                              0.7
                At least 4 but less than 6                              0.8
                At least 6 but less than 8                              0.9
                At least 8                                              1.0
                          Financial Management and Accountability Orders 2008                  10
                                               Savings and Transitional Provisions




Part 7           Savings and Transitional Provisions

7.1         Actions taken and instruments made under the 2005 Orders
  7.1.1 Any action, including the making of an instrument, done under the authority
        of a provision or group of provisions of the 2005 Orders is taken to have
        been done under the authority of the corresponding provision or group of
        provisions of the Financial Management and Accountability Orders 2008.
            Note This includes delegations made by a Chief Executive or the Finance Chief Executive,
            and determinations by the Finance Chief Executive specifying an activity of an Agency as
            a business operation.


7.2         Payments made before registration under order 6.4 of the 2005
            Orders
  7.2.1 If an Agency made a payment in compliance with order 6.4 of the 2005
         Orders:
        (a) on or after 1 July 2007; and
        (b) before the date these Orders were registered;
         that payment is taken to have been made in compliance with Part 6 of these
         Orders.

7.3         References to 2005 Orders in instruments
  7.3.1 A reference in an instrument to:
        (a) the 2005 Orders; or
            (b) a provision or group of provisions of those Orders;
            is taken to include a reference to the Financial Management and
            Accountability Orders 2008 and the corresponding provision or group of
            provisions of those Orders (unless there is no such corresponding provision
            or group of provisions)

  7.3.2 In this order, instrument means an instrument of a legislative character
        (including a legislative instrument) or administrative character, or any other
        document.

7.4         Meaning of 2005 Orders
      7.4.1 In this Part:
            2005 Orders means the Financial Management and Accountability Orders
            2005.




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