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 Australian Greenhouse Office 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:
- all money appropriated by law for the purpose of payment into the component;
- all money received in consideration for any service, benefit, activity, transaction or other matter which is congruent with the expenditure purposes of the component;
- 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 for the operations of the Australian Greenhouse Office;
- for expenditure on programs relating to the Commonwealth's climate change objectives including the following programs:
Cities for Climate Protection National Carbon Accounting System
Mandatory vehicle labelling National Greenhouse Gas Inventory
Climate Change Program National Greenhouse Strategy
Emission Standards for Power Generation National Greenhouse Research Program
Energy Codes and Standards Renewable Energy Industry Program
Fuel Ethanol Pilot Plant Renewable Energy Innovation Investment Fund
Fuel consumption guide for motor Renewable Energy Showcase
vehicles/promotion of vehicle labelling
Greenhouse Challenge Renewable energy targets in energy
Bush for Greenhouse Renewable Energy Technology
Commercialisation Loans and Grants
Household Greenhouse Action Renewable Energy Technology Internet Site
Light Commercial Vehicles –Compressed Voluntary industry/company agreements
Natural Gas (CNG) Infrastructure on fuel efficiency
and other Commonwealth measures related to the National Greenhouse Strategy.
Signed Graham Millar
Graham Millar
Delegate of the Finance Chief Executive
12/5/98
Overview
The Financial Management and Accountability Act 1997, enacted by the Commonwealth Parliament, was designed to provide a comprehensive framework for the financial management of the Commonwealth, including the establishment and regulation of the Reserved Money Fund. This Act was introduced to address the need for a robust and transparent financial management system to ensure accountability and efficiency in the use of public funds. One of its key provisions is the ability to establish components within the Reserved Money Fund to manage specific types of funds or financial activities. Section 20 of the Act facilitates the creation of such components, allowing for the segregation and dedicated use of funds for specific purposes. The policy objective behind this Act is to ensure that public funds are managed responsibly, with clear accountability and transparency, and that they are used effectively to achieve the intended objectives of the Commonwealth. The establishment of the Australian Greenhouse Office Reserve as a component of the Reserved Money Fund is a practical application of this legislative framework, aimed at ensuring that funds related to climate change initiatives are managed in a dedicated and accountable manner.
Scope and Application
The Financial Management and Accountability Act 1997 applies to the Australian Greenhouse Office Reserve, establishing it as a component of the Reserved Money Fund. This Act pertains to the appropriation of funds and their subsequent management within the context of climate change initiatives. It applies to the Commonwealth and its entities, specifically the Australian Greenhouse Office, and governs the transfer and expenditure of funds related to climate change programs and objectives. The geographic and jurisdictional reach is national, as it pertains to the Commonwealth of Australia. The Act allows for the transfer of funds from the Consolidated Revenue Fund to the Australian Greenhouse Office Reserve for specific climate-related purposes and mandates the use of these funds for the operations of the Australian Greenhouse Office and various climate change programs. The Act does not specify exclusions, exemptions, or thresholds but implies a framework that can be extended or restricted through subordinate instruments, which may provide further detail on the administration and application of these funds.
Key Provisions
Section 20 of the Financial Management and Accountability Act 1997, as referenced in the legislative instrument, pertains to the establishment of the Australian Greenhouse Office Reserve as a component of the Reserved Money Fund. This section allows for the transfer of certain funds into this component and specifies the purposes for which these funds may be used. Specifically, section 20(a) allows for the transfer of money appropriated by law, money received for services or benefits related to the component’s purposes, and money paid to the Commonwealth for the component’s expenditure. Section 20(b) outlines the permitted uses of these funds, which include expenditures for the operations of the Australian Greenhouse Office and various programs related to climate change objectives.
The obligations imposed by the Act on the relevant parties include ensuring that all transfers and expenditures comply with the provisions outlined in section 20. This means that only money that fits the criteria specified—such as being appropriated by law or received in consideration for related services—can be transferred into the Australian Greenhouse Office Reserve. Furthermore, all expenditures must be for the stated purposes, which involve supporting the operations of the Australian Greenhouse Office and funding programs aimed at achieving the Commonwealth’s climate change objectives.
In terms of consequences for non-compliance, while the legislative instrument does not explicitly outline penalties or sanctions within its text, breaches of the Financial Management and Accountability Act 1997 in general can lead to significant civil or criminal liabilities. Under the broader Act, unauthorised expenditure or mismanagement of funds can result in severe penalties, including fines and imprisonment. Given the nature of the reserved funds and their intended use for critical climate change initiatives, any mismanagement or improper use of these funds could lead to significant repercussions, both legally and in terms of public accountability. The exact penalties would depend on the specific breach and would be determined in accordance with the general provisions of the Act.