EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Financial Management and Accountability Act 1997
Financial Management and Accountability (Abolition of Other Trust Moneys Account) Determination 2011/19
Purpose of the Determination
The Determination is made under subsection 20(3) of the Financial Management and Accountability Act 1997 (FMA Act) and abolishes the following Account:
Other Trust Moneys Account – Professional Services Review Scheme
Special Accounts generally
In accordance with the Constitution, all revenues or moneys raised or received by the Government of the Commonwealth form one Consolidated Revenue Fund (CRF) and may not be spent unless under an appropriation by the Parliament for the purposes of the Commonwealth. A Special Account may be established by a determination that sets out the amounts that may be credited and the purposes for which it may be debited. Special Accounts established by determination are supported by an appropriation under section 20 of the FMA Act. In effect, Special Accounts allow amounts from the CRF to be spent on the purposes specified in the determination.
Determinations that establish Special Accounts, or vary determinations that establish Special Accounts, are subject to section 22 of the FMA Act. Section 22 of the FMA Act requires the Finance Minister to table a copy of the establishing or varying determination in each House of the Parliament. Either House may disallow a determination within five sitting days of tabling. If the determination is not disallowed, it comes into effect on the calendar day after the last day on which it could have been disallowed.
Regulation 10 of the Legislative Instruments Regulations 2004 preserves the disallowance provisions under section 22 of the FMA Act by exempting Special Account determinations from subsections 57(2) and 57(5) of the Legislative Instruments Act 2003.
Special Accounts can be abolished by a determination made by the Finance Minister. Such a determination is not subject to parliamentary disallowance.
Operation of this Determination
The Determination abolishes an Other Trust Moneys Account which is no longer required.
Reasons for abolishing the Special Accounts
The Other Trust Moneys Account – Professional Services Review Scheme is a general purpose Special Account which has not been used in many years, and there is no reason for it to continue to operate.
Consultation
We have consulted with the Professional Services Review Scheme, which provided Finance with the initial request for abolition. The Agency was given an opportunity to comment on drafts of the instrument and to supply estimates for the “Balances and Transactions Table”.
As the instrument is for internal machinery of government purposes only, no consultation was necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).
Table of estimated balances and transactions of the abolished Special Accounts
The table below outlines the estimated financial implications of the determination on the balance of the Special Accounts.
Special Account | 2011-2012 ($’000) |
Opening Balance | Credits | Debits | Closing Balance |
Other Trust Moneys Account – Professional Services Review | 0 | 0 | 0 | 0 |
Overview
The Financial Management and Accountability (Abolition of Other Trust Moneys Account) Determination 2011/19, made under subsection 20(3) of the Financial Management and Accountability Act 1997 (FMA Act), was enacted to abolish the Other Trust Moneys Account – Professional Services Review Scheme Special Accounts. This Determination was introduced to address the redundancy of a Special Account that has not been utilised for several years and thus no longer serves any purpose. The Minister for Finance and Deregulation is the enacting authority, and the policy objective is to streamline and rationalise the financial management of the Commonwealth by eliminating obsolete Special Accounts.
The determination abolishes a Special Account that has not been used in many years, as confirmed by consultation with the Professional Services Review Scheme, which initially requested the abolition. Given that this instrument pertains to internal machinery of government, no additional consultation was deemed necessary. The Financial Management and Accountability Act 1997 provides the legislative framework for such determinations, ensuring that any changes to Special Accounts are subject to rigorous scrutiny and parliamentary oversight where applicable.
Scope and Application
The Financial Management and Accountability (Abolition of Other Trust Moneys Account) Determination 2011/19, made under the Financial Management and Accountability Act 1997, pertains to the abolition of the Other Trust Moneys Account – Professional Services Review Scheme. This Special Account, which has not been in use for many years, is being abolished as it is no longer required. The Determination is applicable to internal government machinery, with consultation having been conducted solely with the Professional Services Review Scheme, which requested the abolition. The Abolition Determination does not require parliamentary disallowance and has a national jurisdictional reach as it affects the Consolidated Revenue Fund and Special Accounts within the Commonwealth. The Abolition Determination does not extend or restrict application through subordinate instruments and there are no stated exclusions or thresholds in the Determination itself.
Key Provisions
The Financial Management and Accountability (Abolition of Other Trust Moneys Account) Determination 2011/19, made under subsection 20(3) of the Financial Management and Accountability Act 1997 (FMA Act), serves to abolish the Other Trust Moneys Account – Professional Services Review Scheme, a Special Account that has not been used in many years and is deemed unnecessary (section 1). This account, like other Special Accounts, was established to allow specific expenditures from the Consolidated Revenue Fund (CRF) as outlined in the determination, subject to an appropriation under section 20 of the FMA Act (section 2). The abolition of this account is in line with the overall financial management policies of the Commonwealth, ensuring that only necessary accounts remain operational.
Under the FMA Act, the Finance Minister has the authority to establish or vary Special Accounts through a determination, which must be tabled in Parliament as per section 22 of the Act (section 2). This provision ensures that Parliament has a say in the establishment and variation of such accounts, maintaining checks and balances within the financial system. However, the abolition of a Special Account, such as the one addressed in this Determination, does not require parliamentary disallowance and comes into effect immediately after the disallowance period elapses without objection (section 3).
The obligations and requirements imposed by this Determination are primarily administrative. The Professional Services Review Scheme, which initially requested the abolition, was consulted and provided estimates for the "Balances and Transactions Table" (section 4). The determination itself is for internal government machinery purposes, and no further consultation was deemed necessary, as it does not affect the public or other entities outside the government (section 4).
In terms of consequences for breach, the Determination does not explicitly state any offences, penalties, or consequences for non-compliance. However, the underlying FMA Act provides a framework for financial management within the government, and failure to comply with its provisions could lead to financial mismanagement or legal repercussions as per the general provisions of the Act (section 2). The abolition of the Special Account is an administrative action aimed at streamlining the financial management process rather than a punitive measure.