Overview

The Financial Management and Accountability (Abolition of Federation Fund Account) Determination 2001/09 was enacted under the authority of the Financial Management and Accountability Act 1997, and was made by John Joseph Fahey, the Minister for Finance and Administration, on 24 June 2001. This determination sought to address the need for streamlining financial management processes within the government by abolishing the Federation Fund Account, a special account managed by the Department of Finance and Administration. This account was originally established through a previous determination issued on 9 November 1998. The policy objective behind this legislation was to enhance financial accountability and management by eliminating redundant or unnecessary financial accounts. The determination officially came into effect on 30 June 2001, marking the abolition of the Federation Fund Account as a distinct financial entity. By removing this account, the legislation aimed to simplify the financial structure of the government and reduce bureaucratic complexity, thereby improving the overall efficiency and transparency of financial operations. The move aligns with broader efforts to modernise financial management practices and ensure that resources are allocated and accounted for more effectively within the public sector.

Scope and Application

The Financial Management and Accountability (Abolition of Federation Fund Account) Determination 2001/09 applies to the abolition of the Federation Fund Account, a special account operated by the Department of Finance and Administration, which was established by a prior determination on 9 November 1998. The abolition of this account is effective from 30 June 2001, and the legislation is enacted under the authority of the Financial Management and Accountability Act 1997 by John Joseph Fahey, the Minister for Finance and Administration at the time. The scope of this legislation is confined to the administrative restructuring of financial accounts within the government's financial management framework, specifically targeting the cessation of the Federation Fund Account. While the Determination does not explicitly state exclusions, exemptions, or thresholds, its focus is purely on the administrative aspect of the financial account's abolition, which implies that it does not extend to the broader financial operations or transactions outside the scope of this particular account.

Key Provisions

The Financial Management and Accountability (Abolition of Federation Fund Account) Determination 2001/09 (sections 1 to 3) sets out the formal abolition of the Federation Fund Account, a special account managed by the Department of Finance and Administration. The account, previously established by the Determination to Establish Components of the Reserved Money Fund and to Vary an Existing Determination on 9 November 1998, is formally abolished as of 30 June 2001. This signifies a change in the way financial management is conducted within the Department of Finance and Administration, effectively discontinuing the operation of the Federation Fund Account. Under this Determination, the Department of Finance and Administration and any other relevant entities must ensure compliance with the abolition of the Federation Fund Account. This involves ceasing all transactions and activities associated with the account, and ensuring that any financial records and transactions previously managed through this account are appropriately transferred or accounted for under alternative arrangements. The entities involved must maintain accurate records and documentation demonstrating compliance with the requirements of the Determination, including the cessation of the Federation Fund Account. Failure to comply with the provisions of this Determination may result in various consequences, although specific offences, penalties, or civil and criminal consequences are not explicitly stated within the text of the Determination itself. However, breaches of the Financial Management and Accountability Act 1997, under which this Determination is made, can generally lead to civil or criminal penalties. For civil penalties, the maximum penalty could be significant, depending on the nature and severity of the breach, while criminal penalties may include fines and imprisonment for individuals found guilty of certain breaches. It is crucial for the Department of Finance and Administration and related entities to adhere strictly to the Determination to avoid any potential repercussions.