Financial Management Regulations 2004

Victorian Legislation Parliamentary Documents i Financial Management Regulations 2004 S.R. No. 42/2004 TABLE OF PROVISIONS Regulation Page PART 1—PRELIMINARY 1 1. Objective 1 2. Authorising provision 1 3. Commencement 2 4. Application 2 5. Definitions 2 PART 2—ADMINISTRATION OF INCOME AND EXPENDITURE 4 6. Unidentified and surplus money and unpresented cheques 4 7. Limits on incurring of expenses and obligations 4 8. Expenditure of Royal Commissions and Boards of Inquiry 4 PART 3—LOSSES AND INVESTIGATIONS 5 9. Preliminary notice before investigation 5 10. Appointment of investigator 5 11. Relevant employee representation 5 12. Notice of appointment of investigator 6 13. Conduct of investigation 6 14. Report on completion of investigation 7 15. Copies of report 9 PART 4—DIRECTIONS 10 16. Directions of the Minister 10 PART 5—MISCELLANEOUS 12 17. Records of authorities subject to inspection by Department of Treasury and Finance 12 18. Victorian Commission for Gambling Regulation 12 __________________ SCHEDULE 13 ═══════════════ -- 1 of 14 -- Victorian Legislation Parliamentary Documents 1 STATUTORY RULES 2004 S.R. No. 42/2004 Financial Management Act 1994 Financial Management Regulations 2004 The Governor in Council makes the following Regulations: Dated: 18 May 2004 Responsible Minister: JOHN LENDERS Minister for Finance STEPHANIE LENN Acting Clerk of the Executive Council PART 1—PRELIMINARY 1. Objective The objective of these Regulations is to facilitate— (a) economic, effective and efficient financial management; and (b) the efficient and fair investigation of losses of and deficiencies in public money and other property of the State. 2. Authorising provision These Regulations are made under section 59 of the Financial Management Act 1994. -- 2 of 14 -- Victorian Legislation Parliamentary Documents Part 1—Preliminary Financial Management Regulations 2004 S.R. No. 42/2004 2 3. Commencement (1) These Regulations, except regulation 18, come into operation on 24 May 2004. (2) Regulation 18 comes into operation on the day on which section 10.1.1 of the Gambling Regulation Act 2003 comes into operation. 4. Application (1) These Regulations (other than Parts 3 and 4) apply to— (a) all departments; and (b) the bodies specified in the Schedule with respect to the money specified in the Schedule. (2) Part 3 of these Regulations applies to all departments. (3) Part 4 of these Regulations applies to all authorities, public bodies, accountable officers and chief finance and accounting officers. (4) The bodies specified in the Schedule are prescribed as authorities for the purposes of the Act. 5. Definitions In these Regulations— "employee" has the same meaning as in the Public Sector Management and Employment Act 1998; "empowered officer" means an accountable officer or a chief finance and accounting officer; r. 3 -- 3 of 14 -- Victorian Legislation Parliamentary Documents Part 1—Preliminary Financial Management Regulations 2004 S.R. No. 42/2004 3 "incident" means either or both— (a) loss of or deficiency in public money; (b) loss or destruction of or damage to other property of the State; "investigator" means a person appointed under regulation 10; "relevant employee" in relation to an investigation, means the employee in relation to whom the investigation is being or proposed to be held; "relevant incident" in relation to an investigation, means the incident to which the investigation relates; "the Act" means the Financial Management Act 1994. __________________ r. 5 -- 4 of 14 -- Victorian Legislation Parliamentary Documents Part 2—Administration of Income and Expenditure Financial Management Regulations 2004 S.R. No. 42/2004 4 PART 2—ADMINISTRATION OF INCOME AND EXPENDITURE 6. Unidentified and surplus money and unpresented cheques (1) Money received that cannot be identified or that is surplus must be paid to the Treasury Trust Fund pending clarification. (2) Cheques that remain unpresented after 15 months must be paid to the Treasury Trust Fund. 7. Limits on incurring of expenses and obligations Expenses and obligations may be incurred or met by a person employed in a department only within the limits conferred on the person by the Minister administering the department. 8. Expenditure of Royal Commissions and Boards of Inquiry (1) Expenses and obligations may only be incurred or met by a Royal Commission or Board of Inquiry— (a) if authorised by an Order in Council; and (b) to the extent of the maximum amount provided in the Order. (2) The Order must be published in the Government Gazette within 14 days after the making of the Order and laid before both Houses of Parliament within that time or, if a House is not sitting, within 14 days after the next meeting of that House. (3) The maximum amount may be increased by a further Order in Council that must be published and tabled in the manner referred to in sub- regulation (2). __________________ r. 6 -- 5 of 14 -- Victorian Legislation Parliamentary Documents Part 3—Losses and Investigations Financial Management Regulations 2004 S.R. No. 42/2004 5 PART 3—LOSSES AND INVESTIGATIONS 9. Preliminary notice before investigation If under section 57(3) of the Act an empowered officer directs that an investigation be held, the empowered officer must cause to be served on the relevant employee a preliminary notice— (a) specifying the name, position and address of the empowered officer; and (b) informing the relevant employee of the direction that an investigation is to be held; and (c) specifying the relevant incident; and (d) drawing the attention of the relevant employee to section 57 of the Act and these Regulations. 10. Appointment of investigator (1) If an empowered officer has caused a preliminary notice to be served on a relevant employee under regulation 9, the empowered officer must appoint a person to carry out the investigation. (2) A person who is, or was at the time of the relevant incident, an empowered officer of the department employing the relevant employee cannot be appointed investigator. 11. Relevant employee representation (1) A relevant employee may nominate an employee of the department or another person to assist in the conduct of the investigation. (2) If a nomination has not been made under sub- regulation (1) within 7 days after the preliminary notice is served on the relevant employee, the empowered officer may nominate a suitable r. 9 -- 6 of 14 -- Victorian Legislation Parliamentary Documents Part 3—Losses and Investigations Financial Management Regulations 2004 S.R. No. 42/2004 6 person to assist the relevant employee during the conduct of the investigation. 12. Notice of appointment of investigator Within 7 days after appointing an investigator, the empowered officer must cause to be served on the relevant employee a notice— (a) specifying the name of the investigator and the person nominated under regulation 11; and (b) specifying the place, date and time appointed for holding the investigation; and (c) inviting the relevant employee to make a written submission with respect to the relevant incident within the period specified in the notice or such other period as may be agreed by the investigator; and (d) specifying the address to which the written submission must be sent; and (e) informing the relevant employee of his or her entitlement to make an oral submission to the investigator instead of, or in addition to, a written submission. 13. Conduct of investigation (1) At the investigation— (a) the procedure is at the discretion of the investigator; and (b) the investigation must be conducted in private with as little formality and technicality and with as much expedition as the matters being investigated permit; and r. 12 -- 7 of 14 -- Victorian Legislation Parliamentary Documents Part 3—Losses and Investigations Financial Management Regulations 2004 S.R. No. 42/2004 7 (c) the investigator is not bound by the rules of evidence; and (d) the relevant employee must be given a reasonable opportunity to make oral and written submissions; and (e) any reasonable request by the relevant employee for a witness must be agreed to by the investigator. (2) If the investigator considers that a witness (other than the relevant employee) who is an employee may have caused or contributed to the relevant incident, the investigator must as soon as practicable provide the witness with a notice informing him or her of section 57 of the Act and of the requirements of these Regulations. (3) Upon the request of an investigator, the empowered officer may make available officers or engage other persons to assist the investigator to carry out the investigation. (4) For the purpose of the investigation and report, the investigator— (a) is entitled to full and free access to accounts and records relating to the relevant incident; and (b) may make copies of, and take extracts from, any such accounts and records. 14. Report on completion of investigation (1) The investigator must make a report to the empowered officer within 3 months after completing the investigation or within such further period as the empowered officer allows. r. 14 -- 8 of 14 -- Victorian Legislation Parliamentary Documents Part 3—Losses and Investigations Financial Management Regulations 2004 S.R. No. 42/2004 8 (2) In addition to stating all relevant facts and findings, the report must include— (a) reasons for the findings of the investigator; and (b) a statement of any defects in official practices and procedures that, in the opinion of the investigator, contributed to the relevant incident; and (c) a statement of the amount that, in the opinion of the investigator, is equal— (i) in the case of loss of or deficiencies in money, to the amount of the loss or deficiency; (ii) in the case of loss or destruction of property, to the value of the property lost or destroyed; (iii) in the case of damage to property, to the expense of repairing the damage to the property or the value of the property, whichever is the less; and (d) if the report contains a finding that the relevant employee has caused or contributed to the relevant incident, particulars of any mitigating circumstances, including— (i) the extent of the work experience of the employee; (ii) the extent to which the employee was supervised in the performance of such of his or her duties as related to the money or property in relation to which the relevant incident occurred; (iii) the adequacy of official instructions given to the employee with respect to those duties; r. 14 -- 9 of 14 -- Victorian Legislation Parliamentary Documents Part 3—Losses and Investigations Financial Management Regulations 2004 S.R. No. 42/2004 9 (iv) the conditions under which, at the time of the relevant incident, the employee was required to perform his or her duties, including the workload and the facilities for the performance of those duties; (v) the reliability and efficiency of the employee in the performance of his or her duties generally; (vi) the amount of any allowances to which the employee was entitled by way of compensation for the assumption of responsibility for public money or other property of the State; and (e) a record of any objection made by the relevant employee or any witness in relation to the procedure followed at the investigation; and (f) the reasons for refusing any request by the relevant employee for a witness to be examined. 15. Copies of report Upon receiving the report of the investigation, the empowered officer must send a copy to the relevant employee. __________________ r. 15 -- 10 of 14 -- Victorian Legislation Parliamentary Documents Part 4—Directions Financial Management Regulations 2004 S.R. No. 42/2004 10 PART 4—DIRECTIONS 16. Directions of the Minister The Minister may give to any authority, public body, accountable officer or chief finance and accounting officer directions in writing in relation to— (a) the collection, receipt, custody, issue, expenditure, recording, accounting and management of all public money; (b) the recording, examination, inspection and checking of receipts and expenditure and the keeping of accounting records; (c) the management of public money by the establishment and maintenance of internal control standards, internal audit and audit committees; (d) the management of public money by the preparation of financial management performance indicators of authorities or any other bodies subject to any provision of the Act; (e) the form and content of the financial statements and the reports of operations of— (i) authorities and their subsidiaries and related bodies; and (ii) public bodies; (f) the form and content of information requested under section 44A of the Act in relation to— (i) authorities and their subsidiaries and related bodies; and (ii) public bodies; r. 16 -- 11 of 14 -- Victorian Legislation Parliamentary Documents Part 4—Directions Financial Management Regulations 2004 S.R. No. 42/2004 11 (g) the preparation, issue and amendment of accounting manuals of authorities; (h) standards and controls for computerised accounting systems; (i) forms required to be used for the purposes of the Act and regulations; (j) the destruction of accounting documents and other records; (k) systems and procedures for the purchase and supply of goods and services for or on behalf of the State; (l) the management and disposal or writing off of the assets (other than money) and liabilities of the State and the recording of and accounting for those assets and liabilities; (m) the writing off of amounts in respect of losses or deficiencies in public accounts or accounts of authorities or amounts of revenue or debts; (n) such other matters and things relating to the financial management of authorities and public bodies as the Minister thinks necessary to give effect to the Act. __________________ r. 16 -- 12 of 14 -- Victorian Legislation Parliamentary Documents Part 5—Miscellaneous Financial Management Regulations 2004 S.R. No. 42/2004 12 PART 5—MISCELLANEOUS 17. Records of authorities subject to inspection by Department of Treasury and Finance A person employed in the Department of Treasury and Finance may inspect the accounting and financial records of an authority and report to the Minister any lack of uniformity in the form of the accounts or deficiency in the authority's system of accounts or internal controls. 18. Victorian Commission for Gambling Regulation In the Schedule, for "Victorian Casino and Gaming Authority" substitute "Victorian Commission for Gambling Regulation". __________________ r. 17 -- 13 of 14 -- Victorian Legislation Parliamentary Documents Financial Management Regulations 2004 S.R. No. 42/2004 13 SCHEDULE Regulation 4 Authority Specified Money Environment Protection Authority Money forming part of the Public Account Roads Corporation Money forming part of the Public Account Victorian Casino and Gaming Authority Money forming part of the Public Account Victorian Health Promotion Foundation Money forming part of the Public Account ═══════════════ Sch. -- 14 of 14 --