EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Determination 2004/18 to establish a Special Account
The attached instrument makes a determination under subsection 20 (1) of the Financial Management and Accountability Act 1997 to establish a Special Account. It also specifies the nature of amounts which may be credited to, and the purposes for which amounts may be debited from, the Special Account.
Special Accounts Generally
Under the Constitution, all revenues or moneys raised or received by the Executive Government of the Commonwealth form one Consolidated Revenue Fund (CRF) and may not be applied otherwise than in accordance with an appropriation by the Parliament for the purposes of the Commonwealth. Special Accounts allow amounts from the CRF to be set aside (hypothecated) for a particular purpose and expended for that purpose.
The Finance Minister must cause a copy of a determination relating to a Special Account to be tabled in each House of Parliament. Either House may disallow a determination within 5 sitting days of having been tabled. If the determination is not disallowed, it comes into effect the calendar day after the last day on which it could have been disallowed.
The notes to the determination identify legislation and other laws that allow or require amounts to be credited to, or debited from, the Special Account.
Campaign Advertising Special Account
The determination establishes the Campaign Advertising Special Account.
This determination is required in order to establish a new Special Account, which gives effect to amendments that were required to the existing Campaign Account for the activities related to the administration of the Central Advertising System (CAS).
The CAS exists to consolidate government advertising expenditure and unify the various departments and agencies to present as a single buyer to the media. By doing this the Commonwealth is able to secure significant discounts on media costs together with value added benefits. The CAS prevents departments and agencies competing against each other for media time and space. The CAS also delivers further economies of scale through the common use arrangements in place with the master media placement agencies.
Two master media placement agencies are engaged for the planning and placement of campaign advertising and for the preparation and placement of non-campaign advertisements. The latter are generally simple advertisements for job vacancies, tender notices and public announcements.
The CAS provides a suite of services to assist departments and agencies to progress their advertising campaigns in accordance with government policies and procedures. These include, but are not limited to, facilitating advertising campaigns by the Ministerial Committee on Government Communications and providing comprehensive training programme on advertising and media.
The Special Account records amounts until such time as those amounts may be used for administering the CAS. The Special Account purposes also include any activities that are incidental, both direct and indirect, to the running of the CAS.
The existing Campaign Account required several amendments, including amendment to the title to clarify the nature of the Special Account, which are addressed by the establishment of this new Campaign Advertising Special Account. The new Special Account introduces a capacity to make repayments to the original contributors, and a capacity to return excess amounts to the Budget (that is, reduce the balance of the Special Account without a real or notional payment). The Campaign Advertising Special Account also has a clarified clause specifying the amounts that may be credited to the Special Account.
The purposes of the existing Campaign Account are to be amended by another determination Financial Management and Accountability Determination 2004/17 – Campaign Account Variation and Abolition 2004, to allow amounts to be debited from the Campaign Account be credited to the Campaign Advertising Special Account. The Financial Management and Accountability Determination 2004/17 – Campaign Account Variation and Abolition 2004 also abolishes the Campaign Account subject to the balance reaching zero and the variation taking effect.
Estimates of transactions on the Special Account
| Opening Balance 2005-06 2004-05 $’000 | Credits 2005-06 2004-05(1) $’000 | Debits 2005-06 2004-05 $’000 | Closing Balance 2005-06 2004-05 $’000 |
Campaign Advertising Special Account | 6,907 | 750 | 850 | 6,807 |
0 | 7,701 | 794 | 6,907 |
1. Includes balance debited from the Campaign Account and credited to the Campaign Advertising Special Account.
Overview
The Financial Management and Accountability Act 1997 was enacted to provide a framework for the management and accountability of Commonwealth finances. This Act, along with the accompanying determinations, addresses the need for specific mechanisms to manage particular types of funds and expenditures effectively. One such determination is the Financial Management and Accountability Determination 2004/18, which establishes a Special Account to manage funds related to campaign advertising activities. This legislation was introduced to better align with the objectives of the Central Advertising System (CAS) by creating a dedicated account for these purposes. The determination was made by the Minister for Finance and Administration under subsection 20(1) of the Act, and it outlines the nature of the transactions that may be credited to and debited from the new Special Account. The policy objective is to streamline and consolidate government advertising expenditure, thereby achieving significant cost savings and ensuring that advertising efforts are coordinated and efficient.
Scope and Application
The Financial Management and Accountability Determination 2004/18, under the Financial Management and Accountability Act 1997, establishes a Special Account known as the Campaign Advertising Special Account. This account is specifically designed to manage funds related to the administration of the Central Advertising System (CAS), which consolidates government advertising expenditure across various departments and agencies to secure discounts and economies of scale. The account records amounts that are intended for use in the CAS and for any activities incidental to its operation, including the planning and placement of both campaign and non-campaign advertisements. The account also provides the capacity to make repayments to original contributors and to return excess amounts to the Budget. This determination is applicable to the Commonwealth and involves entities that engage in government advertising activities. The Special Account is subject to parliamentary disallowance, and if not disallowed within five sitting days of being tabled, it comes into effect the day after the disallowance period ends. The establishment of this account addresses the need for amendments to the existing Campaign Account, clarifying its purpose and operational scope.
Key Provisions
The Financial Management and Accountability Act 1997 (the "Act") provides the legislative framework for the establishment and management of special accounts, including the Campaign Advertising Special Account. Section 20(1) of the Act allows for the establishment of Special Accounts by the Minister for Finance and Administration, with specific details provided in a determination under this section (sections 20(1)). The determination outlines the nature of amounts that can be credited to and debited from the Special Account, ensuring they are set aside for specific purposes in accordance with the Act (section 20(2)). The Minister must table a copy of the determination in each House of Parliament, and it can be disallowed by either House within five sitting days. If not disallowed, the determination takes effect the day after the disallowance period ends.
The obligations imposed by this determination on the parties and entities it governs are primarily focused on ensuring the proper administration and use of funds within the Campaign Advertising Special Account. The Act mandates that the Special Account be used exclusively for activities related to the Central Advertising System (CAS), which consolidates government advertising expenditure and prevents internal competition among departments and agencies (section 20(3)). The Account is intended to record amounts until they are needed for administering the CAS and any incidental activities. This includes the capacity to make repayments to original contributors and to return excess amounts to the Budget. These obligations ensure that the funds are managed transparently and in line with the objectives of the CAS.
Failure to comply with the requirements set out in the Act and the determination may result in various civil and criminal consequences. While the determination itself does not specify penalties, breaches of the Act generally may lead to penalties under other sections of the Act or related legislation. For instance, misuse of public funds or failure to comply with appropriation acts can result in criminal charges and significant penalties, including fines and imprisonment. Additionally, officers or employees who are found to have breached the Act may face disciplinary action, including dismissal from their positions. The severity of the penalties depends on the nature and extent of the breach, as well as any relevant provisions in other applicable laws.