Financial Management and Accountability Act 1997 - Determination 1998/08 - Determination to Establish Component of the Reserved Money Fund (09/11/1998)

Overview

The Financial Management and Accountability Act 1997 was enacted to ensure that the financial management practices of the Commonwealth are of a high standard and that there is adequate accountability for the use of Commonwealth funds. This Act was introduced to address the need for a robust framework to govern financial management within government departments and agencies, ensuring transparency, efficiency, and accountability. The Parliament of Australia enacted this legislation to provide a clear legislative basis for managing public funds effectively. The policy objective underpinning this Act is to maintain fiscal discipline, improve financial reporting, and enhance the integrity of financial management across government entities. This legislative instrument, Determination 1998/8, establishes the Department of Health and Aged Care – Strategic Intergovernmental Nutrition Alliance Reserve as a component of the Reserved Money Fund, thereby providing a specific financial allocation for the operations of the Secretariat to the Strategic Intergovernmental Nutrition Alliance.

Scope and Application

This legislative instrument, Determination 1998/8 under the Financial Management and Accountability Act 1997, pertains specifically to the establishment of a component within the Reserved Money Fund, namely the Department of Health and Aged Care – Strategic Intergovernmental Nutrition Alliance Reserve. The determination is made by Graham Millar, the Branch Manager of Financial Framework, under the delegated authority of the Finance Chief Executive. This legislative action is designed to ensure that financial resources are properly managed and allocated towards specific strategic initiatives. The funds transferred to this component can originate from appropriations by law, revenue generated from services or activities congruent with the component's purposes, and payments made to the Commonwealth for the specified expenditure purposes. The funds are intended for expenditure related to the operations of the Secretariat to the Strategic Intergovernmental Nutrition Alliance. The instrument operates within the Commonwealth jurisdiction and does not explicitly mention any exclusions, exemptions, or thresholds, though it may be subject to further specifications through subordinate instruments.

Key Provisions

The legislative instrument (F2007B00183) establishes a specific component within the Reserved Money Fund, as determined under section 20 of the Financial Management and Accountability Act 1997. This component is designated for the Department of Health and Aged Care – Strategic Intergovernmental Nutrition Alliance Reserve. According to the instrument, the Branch Manager, Financial Framework, acting on delegated authority from the Finance Chief Executive, specifies that certain funds can be transferred from the Consolidated Revenue Fund to this new component (section 20). These funds include all monies appropriated by law for this purpose, any revenues generated from services or activities aligned with the component's objectives, and any payments made to the Commonwealth for the component's designated purposes. The legislation outlines that the funds within this component are intended solely for expenditures related to the operations of the Secretariat to the Strategic Intergovernmental Nutrition Alliance. This narrow focus ensures that the financial resources are strictly used for their intended purposes, maintaining the integrity and accountability of the fund. As such, any financial movement within this component must adhere to these clearly defined purposes. The Act imposes several obligations on the parties involved. Firstly, the Branch Manager, Financial Framework, must ensure that all transfers and debits to and from the component comply with the conditions set out in the legislation. This includes maintaining precise records of all financial transactions to ensure transparency and accountability. Additionally, the component must operate within the legal framework provided by the Financial Management and Accountability Act 1997, adhering to any further regulations or guidelines that may be issued by the Finance Chief Executive or other relevant authorities. Failure to comply with the provisions of the Act may result in serious consequences. The legislation does not explicitly detail specific offences or penalties within the instrument itself, but breaches of the Financial Management and Accountability Act 1997 can lead to civil or criminal liability. Such breaches might include improper use of funds, failure to maintain required records, or non-compliance with transfer stipulations. The penalties for these breaches can vary, but they may include fines, restitution, or other sanctions as deemed appropriate by the relevant authorities. The exact penalties would be determined by the courts based on the severity and nature of the breach.