Overview

The Financial Management and Accountability Act 1997 was enacted by the Australian Parliament to address the need for better management and accountability in the handling of public funds. This Act, through its various provisions, ensures that financial resources are managed responsibly and that there is transparency in the appropriation and expenditure of government funds. One notable aspect of the Act is the establishment of Special Accounts, which allow specific amounts of money to be set aside for particular purposes without requiring additional appropriations. This mechanism ensures that funds are used efficiently and effectively for their intended purposes. The 2002/03 determination under section 20 of the Act establishes the CSS Special Account, administered by the CSS Board, to manage funds related to the administration and investment of the CSS Fund. This determination outlines the nature of contributions to and expenditures from the Account, ensuring that all financial activities are within the scope of the designated purposes and comply with the Act's requirements. Determinations related to Special Accounts must be tabled in Parliament and can be disallowed by either House within a specified period, reinforcing the legislative oversight of financial management practices.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) is a piece of legislation that governs the financial management and accountability of the Commonwealth Executive Government. Under this Act, the Minister for Finance and Administration has the authority to establish Special Accounts to manage specific appropriations of funds from the Consolidated Revenue Fund (CRF) without the need for additional specific appropriations. This determination, issued under section 20 of the FMA Act, establishes the CSS Special Account and outlines the purposes for which funds can be credited to or debited from the account. The CSS Special Account is to be administered by the CSS Board and is intended to cover expenditures related to the administration of the CSS Scheme, the performance of functions conferred on the CSS Board under legislation, and the management and investment of the CSS Fund. This account can receive contributions from the CRF, revenues related to the CSS Scheme, or amounts paid from the CSS Fund. The determination is subject to disallowance by either House of Parliament within 5 sitting days of being tabled, and if not disallowed, it comes into effect the day after the disallowance period expires. This determination highlights the structured approach to financial management within the Commonwealth, ensuring that funds are allocated and spent in accordance with legislative intent and oversight.

Key Provisions

The main operative sections of this determination (subsection 20(1) of the Financial Management and Accountability Act 1997) establish the CSS Special Account. It outlines the purpose for which monies can be credited to and debited from the account (subsection 20(2)). The determination also includes a standing appropriation (subsection 20(4)) for the account, allowing for expenditure up to the balance of the account. The CSS Special Account is to be administered by the CSS Board and is intended to facilitate the administration of the CSS Scheme, the performance of any other functions conferred on the CSS Board by legislation, and the management and investment of the CSS Fund by the CSS Board (subsection 20(2)). The obligations and requirements imposed by this Act on the parties involved include the need for any monetary contributions appropriated from the Consolidated Revenue Fund, or received by ComSuper as revenue relating to the CSS Scheme or in relation to the administration by the CSS Board of the CSS Scheme, or amounts paid from the CSS Fund in relation to expenditure incurred by the CSS Board on the management or investment of the CSS Fund to be credited to the Account (subsection 20(2)). The CSS Board is responsible for administering the account and ensuring that funds are used solely for the purposes outlined in the determination. Furthermore, any determinations relating to Special Accounts must be tabled in each House of Parliament by the Finance Minister and may be disallowed by either House within 5 sitting days after they are tabled (subsection 20(5)). Any breach of the obligations and requirements imposed by this Act may result in civil or criminal consequences. While the specific offences and penalties are not detailed in the explanatory statement, it is important to note that the Act provides for the imposition of penalties for breaches of its provisions. These penalties may include fines or imprisonment, depending on the nature and severity of the breach. Additionally, any person who suffers loss or damage as a result of a breach of the Act may be entitled to seek compensation or damages from the party responsible for the breach. In summary, the determination establishes the CSS Special Account and outlines the purposes for which monies can be credited to and debited from the account. The CSS Board is responsible for administering the account and ensuring that funds are used in accordance with the determination. Failure to comply with the obligations and requirements imposed by the Act may result in civil or criminal consequences, including the imposition of penalties or the entitlement to seek compensation or damages.