Financial Management and Accountability Act 1997 - Determination 1998/10 - Determination to Establish Components of the Reserved Money Fund and to Vary an Existing Determination (09/11/1998)

Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for the financial management and accountability of Commonwealth entities. This legislation was introduced to address the need for clear and efficient management of public funds by establishing a robust system for financial oversight and accountability. The Act was enacted by the Parliament of Australia, reflecting the policy objective of ensuring transparency, efficiency, and responsibility in the handling of public finances. The legislative instrument in question, Determination Number 1998/10, establishes the components of the Reserved Money Fund and varies an existing determination. This determination was made under section 20 of the Act and aims to facilitate the transfer of funds from the Consolidated Revenue Fund to designated components of the Reserved Money Fund for specific purposes, particularly those related to commemorating the centenary of Federation through substantial capital projects.

Scope and Application

The legislative instrument establishes specific components of the Reserved Money Fund for certain Commonwealth agencies, as identified by the determination. These components, referred to as the Federation Fund Reserve, apply to the Department of Agriculture, Fisheries and Forestry; the Department of Communications, Information Technology and the Arts; the Department of Education, Training and Youth Affairs; the Department of Environment and Heritage; the Department of Finance and Administration; the Department of Industry, Science and Resources; the Department of Transport and Regional Development; and the Department of Veterans’ Affairs. This determination facilitates the transfer of funds from the Consolidated Revenue Fund and other specified sources to these components, specifically for expenditure on substantial capital projects throughout Australia that commemorate the centenary of Federation and contribute significantly to the Australian community. The purposes and conditions for debiting these components are explicitly outlined in the determination, which also details the transfer of funds from the Federation Fund Reserve controlled by the Department of the Prime Minister and Cabinet to the newly established components.

Key Provisions

The main sections of this legislation, namely Determination Number 1998/10 under section 20 of the Financial Management and Accountability Act 1997, establish the Federation Fund Reserve as a component of the Reserved Money Fund for specific government agencies. These agencies include the Department of Agriculture, Fisheries and Forestry; Department of Communications, Information Technology and the Arts; Department of Education, Training and Youth Affairs; Department of Environment and Heritage; Department of Finance and Administration; Department of Industry, Science and Resources; Department of Transport and Regional Development; and Department of Veterans' Affairs. The determination outlines the types of funds that can be transferred into this new reserve and the purposes for which these funds can be used, specifically for substantial capital projects marking the centenary of Federation. The obligations imposed on the specified agencies by this Act are primarily centred around the management and accountability of the funds within the newly established Federation Fund Reserve. These agencies must ensure that the funds are used strictly for the designated purposes, which are the capital projects related to the centenary of Federation. They are also required to maintain appropriate records and reporting mechanisms to demonstrate compliance with the financial management and accountability standards set by the Act. There are no specific offences, penalties, or civil/criminal consequences outlined within this determination. However, breaches of the Financial Management and Accountability Act 1997, under which this determination is made, could lead to significant repercussions. Typically, such breaches might result in disciplinary actions, financial penalties, or other administrative measures as deemed appropriate by the relevant authorities. The maximum penalties for breaches of the Act can vary depending on the nature and severity of the offence, but they could include fines or other sanctions that are commensurate with the breach.