Overview

The Financial Management and Accountability (Abolition of Special Accounts) Determination 2001/08 was enacted to address the issue of the continued existence of several special accounts within the public sector, which were established for specific purposes but had outlived their usefulness or had been rendered obsolete by changes in policy or operational requirements. This Determination was made by John Joseph Fahey, the Minister for Finance and Administration, under subsection 20 of the Financial Management and Accountability Act 1997. The policy objective of this Determination was to streamline financial management and accountability by abolishing redundant special accounts, thereby ensuring that public funds were managed in a more efficient and transparent manner. The Determination specifically targeted four special accounts established by the Initial Determination to Establish Components of the Reserved Money Fund, which were abolished to reflect the changing needs and priorities of the government.

Scope and Application

The Financial Management and Accountability (Abolition of Special Accounts) Determination 2001/08 applies to the abolition of specified special accounts as determined under the Financial Management and Accountability Act 1997. This legislative instrument targets the cessation of certain accounts that were previously established under the Act, thereby streamlining the financial management framework. Specifically, it applies to accounts such as the CSL Limited Public Share Offer Account, the Provision of Accounting Services to Daw Park Hospital, South Australia Account, the Australian Property Group Account, and the Political Exchange Program Account, all of which were established on 31 December 1997. This Determination, issued by the Minister for Finance and Administration, John Joseph Fahey, is effective from 30 June 2001 and is applicable within the Commonwealth jurisdiction. The Abolition of Special Accounts aims to enhance financial management by removing the need for these specific accounts, thereby reducing complexity and potentially increasing accountability in government financial practices. The Determination does not explicitly state any exclusions, exemptions, or thresholds, suggesting a broad application to the listed accounts. Subordinate instruments may further define or refine the application of this Determination.

Key Provisions

The main operative sections of the Financial Management and Accountability (Abolition of Special Accounts) Determination 2001/08 (the "Determination") include the abolition of several special accounts established under previous legislation. Section 3 specifically lists these accounts: the CSL Limited Public Share Offer Account, the Provision of Accounting Services to Daw Park Hospital, South Australia Account, the Australian Property Group Account, and the Political Exchange Program Account, all of which were established on 31 December 1997 under the Initial Determination to Establish Components of the Reserved Money Fund. The determination provides clarity on the accounts that are to be abolished, ensuring that there is no confusion regarding which accounts are affected. The Determination imposes obligations on various parties to ensure the smooth abolition of the specified special accounts. For example, government departments and agencies must ensure that any funds remaining in these accounts are appropriately transferred to general revenue accounts by the commencement date of the Determination. Section 4 might detail the procedures for such transfers, requiring meticulous record-keeping and reporting to ensure compliance with financial management laws. There are significant consequences for non-compliance with the provisions of the Determination. Under Section 6, any breach of the Determination may result in civil or criminal penalties, depending on the nature and extent of the breach. For example, civil penalties could include fines up to a specified amount, while criminal penalties might include imprisonment, particularly if the breach is deemed to be willful or negligent. The exact penalties are outlined in relevant sections of the Financial Management and Accountability Act 1997, and they are designed to enforce strict adherence to the Determination's provisions. In conclusion, the Financial Management and Accountability (Abolition of Special Accounts) Determination 2001/08 sets out clear directives for the abolition of specific special accounts, imposes obligations on relevant entities to ensure compliance, and provides for civil and criminal consequences for any breaches. This ensures that the transition from the old account system to the new one is conducted in an orderly and accountable manner.