DETERMINATION NUMBER: 1998/6
SECTION 20 OF THE FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997
DETERMINATION TO ESTABLISH A COMPONENT OF THE RESERVED MONEY FUND
I, Graham Millar, Branch Manager, Financial Framework Branch, 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 House of Representatives – Commonwealth Parliamentary Association Conference and Seminar Contributions 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 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 relating to the Commonwealth Parliamentary Association Conference to be held in Australia in 2001.
Signed Graham Millar
Graham Millar
Delegate of the Finance Chief Executive
24 June 1998
Overview
The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to provide a robust framework for the financial management of Commonwealth entities. This Act was introduced to address the need for clear accountability and transparency in the financial operations of the government. One of the mechanisms through which this Act operates is the establishment of various components of the Reserved Money Fund, including the House of Representatives – Commonwealth Parliamentary Association Conference and Seminar Contributions Reserve. This determination, made under section 20 of the Act, aims to facilitate the allocation and management of funds specifically for the Commonwealth Parliamentary Association Conference to be held in Australia in 2001. The policy objective is to ensure that funds are appropriately sourced and managed for this particular purpose, thereby enhancing financial accountability and ensuring that resources are directed as intended by the legislation.
Scope and Application
The legislative instrument F2007B00054, pursuant to section 20 of the Financial Management and Accountability Act 1997, establishes the House of Representatives – Commonwealth Parliamentary Association Conference and Seminar Contributions Reserve as a component of the Reserved Money Fund. This legislation applies specifically to the management of funds intended for the Commonwealth Parliamentary Association Conference scheduled to take place in Australia in 2001. The determination allows for the transfer of specified types of money, including funds held in trust for others, appropriated funds, money received for services congruent with the component’s purposes, and payments made to the Commonwealth for the component’s expenditure. These funds are to be debited solely for expenses related to the conference. The application of this legislation is confined to the financial management of this particular reserve within the broader framework of the Commonwealth's financial accountability. No explicit exclusions, exemptions, or thresholds are mentioned in the determination, and the scope is limited to the outlined financial transactions and purposes.
Key Provisions
The main provisions of this determination (sections 20, 53) establish a specific component of the Reserved Money Fund, known as the House of Representatives – Commonwealth Parliamentary Association Conference and Seminar Contributions Reserve. This component is designated for funding activities related to the Commonwealth Parliamentary Association Conference scheduled to take place in Australia in 2001. Under section 20 of the Financial Management and Accountability Act 1997, it is permissible to transfer certain funds into this component from the Consolidated Revenue Fund. These funds include money held in trust for others, money specifically appropriated by law for this purpose, money received in exchange for services, benefits, activities, transactions, or matters consistent with the component’s expenditure purposes, and any money paid to the Commonwealth for this component’s purposes.
The Act imposes several obligations on parties and entities governed by it. Firstly, the determination requires that the specified funds be transferred into the newly established component. Secondly, it mandates that any expenditure from this component must be solely for the purposes of the Commonwealth Parliamentary Association Conference scheduled for 2001. This ensures that the funds are used strictly as intended, with no deviation from the outlined purpose.
The legislation also includes provisions for potential breaches and associated consequences. Although the determination does not explicitly detail offences, penalties, or consequences within its text, the broader Financial Management and Accountability Act 1997 may impose such measures. In the case of misuse or mismanagement of funds, there could be severe repercussions, including financial penalties and potential legal action. Given the Act's overarching framework, any breach of its provisions could lead to disciplinary actions against the responsible parties, as well as potential financial restitution to the Commonwealth. The exact penalties would be determined in accordance with the overarching Act, which might include both criminal and civil liabilities depending on the nature and severity of the breach.