Financial Management and Accountability Act 1997 - Determination 1998/9 - Determination to Establish Component of the Reserved Money Fund (09/11/1998)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to provide a comprehensive framework for the financial management of Commonwealth entities. This Act was introduced to address the need for robust financial oversight and accountability mechanisms within the government, ensuring that public funds are used efficiently and effectively. The Act establishes a Reserved Money Fund to which certain funds can be allocated, providing flexibility in managing financial resources for specific purposes. The Determination of 1998, under section 20 of the Act, establishes the Department of Family and Community Services – Commonwealth/State Disability Agreement Reserve as a component of the Reserved Money Fund. This determination allows for the transfer of funds intended for the benefit of individuals or for specific expenditure purposes related to the Commonwealth/State Disability research and development agenda, ensuring that these funds are managed in a manner consistent with the overarching policy objectives of the Act. The policy objective of this determination is to facilitate the allocation and management of funds for disability-related research and development projects, thereby supporting the implementation of the Commonwealth/State Disability Agreement.

Scope and Application

The 1998 Determination under Section 20 of the Financial Management and Accountability Act 1997 establishes a specific component within the Reserved Money Fund, namely the Department of Family and Community Services – Commonwealth/State Disability Agreement Reserve. This component is specifically designated for managing funds related to the Commonwealth/State Disability research and development agenda. The determination applies to the Department of Family and Community Services and to any transactions involving funds intended for disability-related research and development projects. It is a Commonwealth instrument and thus applies nationally across Australia. The Determination allows for the transfer of certain types of funds from the Consolidated Revenue Fund to this component, including money held in trust for others and all payments made to the Commonwealth for the designated expenditure purposes. Exclusions or exemptions are not explicitly stated in the text, but the scope of permissible transfers and debits is clearly defined. The applicability and operation of this Determination may be further refined or extended through subordinate instruments, although such extensions or refinements are not elaborated upon in the provided text.

Key Provisions

The key provision of Determination 1998/9 is the establishment of the Department of Family and Community Services – Commonwealth/State Disability Agreement Reserve as a component of the Reserved Money Fund (section 20 of the Financial Management and Accountability Act 1997). This determination allows for specific types of funds to be transferred into and out of this component. Specifically, section (a) allows for the transfer of money held in trust for a person other than the Commonwealth, and all money paid to the Commonwealth by any person for the expenditure purposes of this component. This means that any funds intended for the Commonwealth/State Disability research and development agenda can be deposited into this reserve, ensuring that they are held securely and are specifically earmarked for their intended use. The obligations and requirements imposed by this Act on the parties involved are primarily administrative and financial in nature. The Department of Family and Community Services is tasked with managing the funds within this reserve, ensuring they are appropriately allocated and used for the designated Commonwealth/State Disability research and development projects. The Act requires that these funds are to be used strictly for their intended purpose, which is to support projects related to the Commonwealth/State Disability research and development agenda. This ensures that the funds are not diverted to other uses and are utilised effectively to achieve the policy goals of the agreement. There are no specific offences, penalties, or civil/criminal consequences outlined in this determination for breaches of its provisions. However, the Financial Management and Accountability Act 1997, under which this determination is made, may impose broader penalties for mismanagement or misuse of funds. Any breach of the provisions of the Act could potentially lead to disciplinary action, financial penalties, or other consequences as determined under the overarching legislation. The determination itself focuses on establishing clear parameters for the transfer and use of funds rather than detailing specific sanctions for non-compliance.