SECTION 20 OF THE FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997
DETERMINATION TO ESTABLISH COMPONENT OF THE RESERVED MONEY FUND
I, Graham Millar, Branch Manager, Financial Framework, pursuant to powers delegated to me by the Finance Chief Executive under section 53 of the Financial Management and Accountability Act 1997, determine, for the purposes of section 20 of that Act, that the Department of Communications and the Arts -Australian Archives Projects and Sponsored Activities Reserve is established as a component of the Reserved Money Fund.
I further determine that:
(a) amounts of the following kinds may be transferred from the Consolidated Revenue Fund to this component:
- money that is held in trust for, or otherwise for the benefit of, a person other than the Commonwealth;
- all money paid to the Commonwealth by any person for the expenditure purposes of the component; and,
(b) the purposes for which amounts may be debited to the component are:
- for expenditure on projects which are supported by sponsorships or donations.
Graham Millar
Delegate of the Finance Chief Executive
7/4/98
Overview
The Financial Management and Accountability Act 1997 was enacted to address the need for robust financial management and accountability within the Commonwealth. This legislation provides a framework for the management of public money and establishes mechanisms for ensuring transparency and responsibility in the use of public funds. The Act empowers the Finance Chief Executive to delegate certain functions, including the establishment of components of the Reserved Money Fund, to appropriate officers. The determination to establish the Department of Communications and the Arts -Australian Archives Projects and Sponsored Activities Reserve as a component of the Reserved Money Fund was made under section 53 of the Act, ensuring that funds for specific projects supported by sponsorships or donations are managed effectively and transparently. This legislative instrument aims to facilitate the proper allocation and use of funds for designated purposes while maintaining the integrity of financial management practices within the Commonwealth.
Scope and Application
The Financial Management and Accountability Act 1997, specifically section 20, empowers the determination of components within the Reserved Money Fund, as exemplified by the establishment of the Department of Communications and the Arts - Australian Archives Projects and Sponsored Activities Reserve. This Act applies to the Department of Communications and the Arts, encompassing the management and allocation of funds specifically designated for projects supported by sponsorships or donations. The legislation ensures that monies transferred to this component are either held in trust for individuals or entities other than the Commonwealth or payments made by any person for the specific expenditure purposes of the component. The geographic reach of this Act is Commonwealth-wide, impacting financial management practices across various jurisdictions under Australian governance. The Act does not explicitly provide exclusions or exemptions but implies that only designated funds intended for the specified projects may be debited from this component. The scope of application may be further defined or restricted through subordinate instruments as necessary to maintain compliance with overarching financial management standards.
Key Provisions
Section 20 of the Financial Management and Accountability Act 1997 authorises the establishment of components within the Reserved Money Fund, with the key provision here being the creation of the Australian Archives Projects and Sponsored Activities Reserve as a component of this fund (s. 20). This component is specifically designed to manage funds for projects supported by sponsorships or donations, and it allows for the transfer of certain monies from the Consolidated Revenue Fund into this new reserve (s. 20(a)). These monies include funds held in trust for or otherwise for the benefit of a person other than the Commonwealth, as well as all money paid to the Commonwealth for the expenditure purposes of the component (s. 20(a)). Additionally, the funds within this component can only be used for specific expenditures related to projects that are supported by sponsorships or donations (s. 20(b)).
The Act imposes several obligations and requirements on the parties or entities it governs. The Department of Communications and the Arts, which is responsible for the Australian Archives Projects and Sponsored Activities Reserve, must ensure that all transactions involving this reserve adhere to the stipulations outlined in the Act. This includes the proper recording and accounting of all transfers and expenditures, ensuring that funds are only used for the specified purposes of supporting projects through sponsorships or donations. The Department is also responsible for maintaining transparency and accountability in the management of these funds, ensuring that they are used in compliance with the legislative requirements.
Breaching the provisions of the Financial Management and Accountability Act 1997 can lead to various civil and criminal consequences. For instance, if funds within the Australian Archives Projects and Sponsored Activities Reserve are misused or diverted for purposes other than those specified in the Act, this could result in disciplinary action against the responsible officials within the Department of Communications and the Arts. Additionally, individuals or entities found to have misappropriated funds may face legal penalties, including fines and, in severe cases, imprisonment. The Act does not explicitly state maximum penalties within the referenced sections, but general provisions under the Act and other related legislation may apply, leading to significant financial and legal repercussions for those found in breach of the Act's requirements.