Financial Management and Accountability Act 1997 - Determination 2000/05 - Determination to Establish a Special Account

Overview

The Financial Management and Accountability Act 1997 was enacted to ensure robust financial management and accountability within the Australian government. This Act was introduced to address the need for clear financial frameworks and controls within the government's financial operations, aiming to enhance transparency and efficiency in the management of public funds. The determination under Section 20 of the Act, made by Gavin Back, Delegate of the Finance Chief Executive, establishes the Department of the Treasury – Australian Government Actuary Account as a Special Account. This establishment allows for specific financial transactions related to the Australian Government Actuary to be managed separately, ensuring that funds are appropriately allocated and used for their intended purposes. The policy objective of this determination is to facilitate clear and accountable financial management concerning the activities of the Australian Government Actuary.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) establishes a legal framework for the financial management of Commonwealth entities, including the establishment of special accounts such as the Australian Government Actuary Account. This account is designated for specific financial activities and transactions related to the Australian Government Actuary's operations. The determination to establish this special account applies to the Department of the Treasury and governs the types of financial transactions that can be credited or debited to it. Credited amounts include all money appropriated by law to the Australian Government Actuary, revenue from services or activities aligned with the account's purposes, and payments received from any person for the account's expenditure purposes. Conversely, amounts can only be debited for expenditures directly related to the operations of the Australian Government Actuary. The legislation ensures that the account is used strictly for its intended financial activities, thereby maintaining the integrity and transparency of the Commonwealth's financial management.

Key Provisions

The main operative sections of the Determination 2000/05, established under Section 20 of the Financial Management and Accountability Act 1997, pertain to the creation and management of a Special Account for the Department of the Treasury – Australian Government Actuary. Specifically, Section 20(a) specifies the types of funds that can be credited to the account, including appropriations made by law to the Australian Government Actuary, money received for services or activities related to the account's purposes, and funds paid to the Commonwealth for the account's expenditure purposes. Section 20(b) outlines that these funds can only be used for expenditures directly related to the operations of the Australian Government Actuary. The Act imposes several obligations on the parties involved. Firstly, it mandates that any money credited to the account must strictly align with the expenditure purposes outlined in Section 20(b), which is the operations of the Australian Government Actuary. This includes ensuring that all transactions and appropriations are appropriately documented and accounted for. Additionally, the account must adhere to the financial management standards set forth by the Financial Management and Accountability Act 1997, ensuring transparency and compliance with financial regulations. Failure to comply with the provisions set out in the Determination may result in legal consequences. Although the specific offences and penalties are not detailed within the Determination itself, breaches of the Financial Management and Accountability Act 1997 can lead to substantial civil or criminal penalties. Under the Act, individuals or entities found guilty of non-compliance could face fines, imprisonment, or both, depending on the severity of the breach. The maximum penalties could vary based on the specific nature of the offence, but they are intended to enforce strict adherence to the financial management directives outlined in the legislation.