Overview

The Financial Management and Accountability Act 1997 was enacted to ensure that public money is managed responsibly and transparently, addressing gaps in financial governance and accountability within Commonwealth entities. This Act provides a framework for financial management practices and imposes obligations on entities to maintain proper accounting records and provide accurate and timely financial reports. The determination to establish a Special Account for the Department of Health and Aged Care - Australian Council for Safety and Quality in Health Care, made under section 20 of the Act, aims to facilitate the dedicated management of funds specifically for the administration and national programs focused on health care quality and safety. This legislative instrument was made by Anne Morant, acting under delegated authority from the Finance Chief Executive, to ensure that financial resources are appropriately allocated and utilised for their intended purposes within the health sector. The policy objective is to enhance the efficiency and effectiveness of health care services through targeted funding and accountability mechanisms.

Scope and Application

The Determination 2000/01 under Section 20 of the Financial Management and Accountability Act 1997 establishes the Department of Health and Aged Care - Australian Council for Safety and Quality in Health Care Account as a Special Account. This legal instrument applies to the Australian Council for Safety and Quality in Health Care, which is overseen by the Department of Health and Aged Care. The Special Account is intended to manage funds related to the administration of the council and national initiatives aimed at enhancing health care quality and safety. The account can receive various types of funds, including money held in trust for non-Commonwealth entities, appropriations from the Parliament, payments received for services congruent with the account's objectives, and funds paid to the Commonwealth for the account’s purposes. Conversely, the funds can only be expended for activities directly related to the administration of the council and national health care quality and safety programs. This Determination is an application of the Commonwealth’s financial management legislation, extending its reach to ensure financial oversight and accountability within the specified scope.

Key Provisions

The main operative sections of this Determination (2000/01) under Section 20 of the Financial Management and Accountability Act 1997 establish a Special Account for the Department of Health and Aged Care, specifically for the Australian Council for Safety and Quality in Health Care. This account allows for the crediting and debiting of funds under certain conditions (Section 20(1)). Section (a) specifies the types of money that can be credited to this account, including funds held in trust for others, money appropriated by Parliament, income from services provided, and payments received from others for the account's designated purposes. Section (b) outlines the purposes for which amounts may be debited from the account, which are limited to expenditures related to the administration of the Australian Council and national programs aimed at improving quality and safety in health care. The Act imposes several obligations and requirements on the parties governed by it. Primarily, it mandates that only specified types of funds can be credited to the account, ensuring that the financial activities align with the account's intended purposes. The account must be used exclusively for expenditures related to the administration of the Australian Council and national health care quality and safety programs. This requirement ensures that the funds are utilised effectively and transparently, maintaining accountability and adherence to the legislative intent. Additionally, any funds credited must be managed in accordance with the Financial Management and Accountability Act 1997, ensuring compliance with broader financial management standards and practices. The Determination also stipulates the potential consequences for breaches of the Act's provisions. While specific penalties are not detailed in the text, breaches of the Financial Management and Accountability Act 1997 generally can lead to significant civil or criminal consequences. Civil penalties may include fines and other monetary penalties, depending on the severity and impact of the breach. Criminal penalties could apply if the breach is deemed to be fraudulent or involves intentional misconduct, potentially resulting in imprisonment or additional fines. The exact penalties would depend on the specific nature of the breach and the jurisdiction's legal framework. It is essential for the Department of Health and Aged Care to adhere strictly to the requirements to avoid these consequences.