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 Health and Family Services – PBPA – Factor (f) Funds 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 in relation to the Factor (f) scheme, part of the Pharmaceutical Industry Development Program, to facilitate increases in manufacture, research and product and process development in Australia.
Graham Millar
Delegate of the Finance Chief Executive
7/4/98
Overview
The Financial Management and Accountability Act 1997 was enacted by the Australian Parliament to provide a framework for the financial management and accountability of Commonwealth entities. This Act was introduced to address the need for robust financial oversight and regulation within the Commonwealth to ensure transparency and accountability in the use of public funds. Section 20 of the Act pertains to the establishment of components within the Reserved Money Fund, which are essentially dedicated funds intended for specific purposes. The 1997 Act aims to provide a structured approach to managing these funds, ensuring they are used efficiently and effectively for their intended purposes. The determination to establish a component of the Reserved Money Fund, specifically the Department of Health and Family Services – PBPA – Factor (f) Funds Reserve, falls within this legislative framework, facilitating the allocation of funds towards the Pharmaceutical Industry Development Program and its objectives of enhancing domestic pharmaceutical manufacturing, research, and development.
Scope and Application
Section 20 of the Financial Management and Accountability Act 1997 applies to the establishment of a specific component of the Reserved Money Fund, which, in this instance, is the Department of Health and Family Services – PBPA – Factor (f) Funds Reserve. This component is intended to facilitate increased manufacture, research, and product and process development in Australia through the Factor (f) scheme, which is part of the Pharmaceutical Industry Development Program. The Act delineates the categories of funds that may be transferred to this component, including money appropriated by law, money received for services or transactions congruent with the component's expenditure purposes, and money paid to the Commonwealth for these purposes. The jurisdictional reach of this legislation is Commonwealth, as it involves the appropriation and management of funds by a department within the federal government. There are no stated exclusions, exemptions, or thresholds in this particular section of the Act, but the application and specifics of the component's operations may be further defined through subordinate instruments or administrative regulations.
Key Provisions
Section 20 of the Financial Management and Accountability Act 1997 (FMA Act) outlines the process for establishing a component of the Reserved Money Fund, which in this case pertains to the Department of Health and Family Services – PBPA – Factor (f) Funds Reserve. This determination by Graham Millar, the Branch Manager, Financial Framework, empowers the Department to transfer specific types of funds into this reserve. The funds that can be transferred include money appropriated by law, money received from services or activities aligned with the reserve's purpose, and money paid to the Commonwealth for the reserve's designated expenditure.
These funds are intended for a particular purpose: to support the Factor (f) scheme, which is part of the Pharmaceutical Industry Development Program. The primary objective of this scheme is to boost the manufacture, research, and development of products and processes within the Australian pharmaceutical industry. By establishing this reserve, the government aims to ensure a steady and dedicated funding stream for these critical activities.
The obligations imposed on the Department of Health and Family Services by this Act include adhering to the specified transfer criteria and ensuring that all funds are used strictly for the intended purposes of the Factor (f) scheme. The Department must maintain detailed records and provide regular reporting on the use of these funds to ensure transparency and accountability. Additionally, the Department is required to seek and obtain any necessary approvals for fund transfers and expenditures, ensuring that the legal and regulatory frameworks are strictly followed.
Failure to comply with the provisions of the FMA Act can result in significant consequences. Although the Act does not explicitly detail penalties within Section 20, breaches of the Act generally can lead to civil or criminal penalties. For civil penalties, the maximum fines can be substantial, often commensurate with the severity and financial impact of the breach. Criminal penalties can include imprisonment, reflecting the seriousness of non-compliance with financial management and accountability regulations. These consequences underscore the importance of adhering to the established procedures and purposes outlined in the Act.