Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, aims to ensure the proper management and accountability of Commonwealth financial resources. This Act provides the legal framework for the establishment of Special Accounts, which allow for the setting aside of funds in the Consolidated Revenue Fund for specific purposes. The 2002 determination under this Act establishes the ComSuper Special Account, administered by ComSuper, to cater for expenditures related to the administration, accounting, and support services for the Commonwealth Superannuation Scheme and Public Sector Superannuation Scheme Boards, as well as other specified functions. The establishment of such accounts ensures that funds are appropriately allocated and utilised for their intended purposes without the need for additional appropriations, thereby enhancing financial management efficiency. Determinations related to Special Accounts must be tabled in Parliament and may be disallowed within a specified period, ensuring ongoing oversight and accountability.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2002/05 applies to the establishment of a Special Account under the Act, specifically the ComSuper Special Account, which replaces the former Commonwealth Superannuation Administration Account. This Act pertains to the Commonwealth Government, allowing for the allocation of funds in the Consolidated Revenue Fund for specific purposes without the need for additional appropriations. The ComSuper Special Account is administered by ComSuper and serves to manage funds related to the administration, accounting, and support services for the Commonwealth Superannuation Scheme and Public Sector Superannuation Scheme Boards, as well as other related functions. The Act also specifies the types of contributions that can be credited to this account, including appropriations from the CRF, revenue received by ComSuper, and transfers from the CSS and PSS Boards. The Determination is subject to disallowance by either House of Parliament within five sitting days of being tabled. This Act extends its application through subordinate instruments, which detail the specific nature and purposes of the account, and it operates within the Commonwealth jurisdiction.

Key Provisions

The Financial Management and Accountability Act 1997 (the Act) has established a Special Account through the Determination 2002/05, which is titled the ComSuper Special Account (section 20). This account replaces the Commonwealth Superannuation Administration Account, with all existing funds being transferred to the new account before its closure. The ComSuper Special Account is specifically designated for certain expenditures related to the administration and support services for the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS), including the administration of any functions assigned to the Commissioner for Superannuation under relevant legislation. The account also serves to facilitate the transfer of shares of revenue between the Commissioner for Superannuation and the respective Boards of the CSS and PSS. Under this Act, the ComSuper Special Account must adhere to certain guidelines regarding the types of transactions permissible within the account. Monetary contributions, whether appropriated from the Consolidated Revenue Fund (CRF), received as revenue from the Commissioner for Superannuation's functions, or obtained from the administration of the CSS or PSS by the relevant boards, may be credited to the account (subsection 20(2)). Conversely, funds may only be debited from the account for the specific purposes outlined in the determination, ensuring that all expenditures are strictly aligned with the account's intended use. The establishment and operation of this account require the Finance Minister to table the determination in each House of Parliament, where it may be disallowed within 5 sitting days. If not disallowed, the determination takes effect the day after the disallowance period ends. The obligations imposed by the Act on parties governed by this legislation primarily concern the administration and management of the ComSuper Special Account. ComSuper, as the entity administering the account, must ensure that all transactions are strictly in line with the purposes defined in the determination. This includes maintaining accurate records of all credits and debits and ensuring that any funds debited from the account are used solely for the specified purposes. Failure to adhere to these obligations may result in financial mismanagement or misuse of public funds, leading to potential legal and administrative repercussions. The Act also imposes a responsibility on the Finance Minister to ensure the determination is properly tabled in Parliament and to monitor compliance with the account's established guidelines. Breaching the provisions of the Act or the terms of the ComSuper Special Account determination can result in civil or criminal penalties. While the specific penalties are not detailed within the Act, general provisions under Australian law suggest that non-compliance may lead to fines, legal action, or other civil consequences for the responsible parties. For instance, misappropriating funds from the account could be considered fraud or theft, potentially leading to criminal charges. Additionally, officers or employees found to have acted negligently or in bad faith may face disciplinary actions, including dismissal or legal penalties. The severity of these consequences underscores the importance of adhering to the account's guidelines and the obligations set forth by the Act.