Financial Management and Accountability Act 1997 - Determination to Abolish Special Accounts (18/05/2000)

Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, was established to ensure sound financial management and accountability within the Commonwealth public sector. This legislation aimed to address gaps in financial management practices and to provide a comprehensive framework for the effective and efficient use of public funds. The Act focuses on creating transparency, promoting efficiency, and enhancing the control and accountability of financial resources. The determination to abolish special accounts, such as the Provision of Accounting Services to Concord Hospital – NSW Account, Accounting Services Account, Accounting Services for the ACT Government Account, and Returned Payments Account, was made under the powers delegated by the Chief Executive of the Department of Finance and Administration. This determination, which took effect on 31 May 2000, was aimed at streamlining financial management practices and reducing the complexity associated with multiple accounts. The policy objective behind this change is to foster a more coherent and unified approach to managing public financial resources within the specified accounts.

Scope and Application

The F2007B00042 legislative instrument pertains to the Financial Management and Accountability Act 1997, specifically addressing the abolition of certain special accounts within the scope of that Act. The authority to make this determination is exercised by Gavin Back, Special Adviser, Financial Framework Branch, under the delegation of powers from the Chief Executive of the Department of Finance and Administration. The determination targets the abolition of four specific accounts: the Provision of Accounting Services to Concord Hospital – NSW Account, the Accounting Services Account, the Accounting Services for the ACT Government Account, and the Returned Payments Account. The abolition of these accounts is effective as of 31 May 2000, marking a significant administrative change for financial management within the specified entities. This change applies directly to the named accounts, ensuring that their operations and financial records are no longer maintained under their previous designations.

Key Provisions

The main operative sections of this legislative instrument pertain to the abolition of specific special accounts as outlined in subsection 20(3) of the Financial Management and Accountability Act 1997. The determination, issued by Gavin Back, Special Adviser, Financial Framework Branch, identifies four accounts that are to be abolished: the Provision of Accounting Services to Concord Hospital – NSW Account, the Accounting Services Account, the Accounting Services for the ACT Government Account, and the Returned Payments Account. These accounts are to be abolished with effect from 31 May 2000. The legal authority for this determination is derived from the delegation of powers under section 53 of the Act. The Act imposes certain obligations on the entities and parties governed by it. Primarily, these entities must ensure compliance with the abolition of the specified accounts as determined. This includes the cessation of any financial transactions or operations that were previously conducted through these accounts. The entities affected must also ensure that all financial records and documentation are appropriately adjusted to reflect the abolition of these accounts. This may involve reclassifying transactions, updating financial statements, and ensuring that future transactions are recorded in accordance with the remaining operational accounts. Breaching the provisions of the Financial Management and Accountability Act 1997 can lead to various civil and criminal consequences. While specific offences and penalties are not detailed in this legislative instrument, it is essential to note that the Act generally provides for penalties for non-compliance. Under the Act, individuals or entities found to be in breach of its provisions may be subject to financial penalties, which can include fines. Additionally, in cases of significant non-compliance, criminal charges may be pursued, leading to potential imprisonment. The exact penalties depend on the nature and severity of the breach, and the specific provisions of the Act that have been contravened. Therefore, entities and individuals must take care to adhere to the requirements set out in the Act to avoid these potential consequences.