Overview

The Financial Management and Accountability (Abolition of Special Account) Determination 2001/05 was introduced to address the need for streamlining and improving financial management within the Australian public sector, particularly in the context of specific accounts previously used for certain types of transactions. Enacted by the Minister for Finance and Administration, John Joseph Fahey, under the authority of the Financial Management and Accountability Act 1997, this determination specifically targets the abolition of the 'Services for other Governments and Non-agency Bodies Account', which was previously established by an earlier legislative instrument. The policy objective behind this determination is to enhance financial accountability and efficiency by consolidating financial management practices, thereby reducing the complexity and potential for discrepancies in public financial records.

Scope and Application

The Financial Management and Accountability (Abolition of Special Account) Determination 2001/05 applies to the 'Services for other Governments and Non-agency Bodies Account' operated by the Department of Communications, Information Technology and the Arts. This account, established by the Initial Determination to Establish Components of the Reserved Money Fund on 31 December 1997, is abolished by this Determination. The legislation falls within the jurisdiction of the Commonwealth and is made under the authority of the Financial Management and Accountability Act 1997. The Determination, which was made by John Joseph Fahey, the Minister for Finance and Administration, commenced on 30 June 2001. This legislation does not specify any exclusions, exemptions, or thresholds, and its application is limited to the specific account mentioned. The scope of the Act is not extended or restricted through subordinate instruments in this instance.

Key Provisions

The Financial Management and Accountability (Abolition of Special Account) Determination 2001/05 (section 1) primarily provides for the abolition of the 'Services for other Governments and Non-agency Bodies Account' which was operated by the Department of Communications, Information Technology and the Arts. This account was previously established on 31 December 1997 by the Initial Determination to Establish Components of the Reserved Money Fund. The determination (section 3) specifies that this account is to be abolished effective from the commencement date of the determination, which is 30 June 2001. In accordance with the obligations imposed by the determination (section 3), the Department of Communications, Information Technology and the Arts must cease any operations related to the 'Services for other Governments and Non-agency Bodies Account'. This includes the cessation of any transactions, reporting, or maintenance of records specifically associated with this account. The abolition of the account requires the department to reassign any remaining funds or responsibilities previously managed by the account to another appropriate account or department within the government, ensuring there is no discontinuity in financial management or accountability. Breaches of the provisions outlined in the determination may result in various consequences, although the specific details of penalties or enforcement actions are not explicitly stated within the text of the determination itself. However, under the broader scope of the Financial Management and Accountability Act 1997, which the determination is made pursuant to, there could be potential civil or criminal liabilities for non-compliance. These could include fines or other penalties as prescribed by relevant legislation, depending on the nature and severity of the breach. The specific maximum penalties would be determined in accordance with other applicable laws or regulations that govern financial management and accountability within the public sector.