Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, was designed to provide a framework for the financial management and accountability of Commonwealth entities. This legislation aims to ensure that all funds are managed in accordance with an appropriation made by the Parliament. The Act established the mechanism for the creation of Special Accounts, which allow for the segregation of funds within the Consolidated Revenue Fund for specific purposes. Determination 2005/11, issued under the authority of the Minister for Finance and Administration, creates a Special Account for the Commonwealth Grants Commission to manage miscellaneous funds temporarily held on behalf of persons or entities not subject to the Act. This determination addresses the need for a dedicated account for the Commonwealth Grants Commission, which was established after the initial creation of Other Trust Moneys Special Accounts for existing agencies. The Special Account allows for the appropriate management and expenditure of these funds, ensuring they are used for the specified purposes in accordance with the Act. The creation of this account ensures compliance with financial management standards while providing the necessary flexibility for the Commonwealth Grants Commission to manage its financial obligations effectively.

Scope and Application

The Determination 2005/11 under the Financial Management and Accountability Act 1997 (FMA Act) establishes a Special Account known as the Other Trust Moneys - Commonwealth Grants Commission Special Account, intended for use by the Commonwealth Grants Commission. This Act applies to the Commonwealth Grants Commission, an entity that was established after the initial creation of Other Trust Moneys Special Accounts on 1 January 1998, and which requires its own Special Account to manage miscellaneous funds temporarily held on behalf of persons or entities not subject to the FMA Act. The geographic reach of this legislation is national, as it pertains to the financial management of the Commonwealth Government. The establishment of the Special Account is supported by an appropriation under section 20 of the FMA Act and is subject to disallowance by either House of Parliament. The Special Account allows the Commonwealth Grants Commission to hold and expend specified amounts from the Consolidated Revenue Fund for designated purposes, such as holding small amounts of miscellaneous moneys or facilitating payments to rightful owners. Any changes to the name or status of the Commonwealth Grants Commission will not affect the retention of the Special Account by the successor agency, ensuring continuity in managing the funds.

Key Provisions

The main operative sections of Determination 2005/11 ((sections 2-6)) establish a Special Account entitled Other Trust Moneys - Commonwealth Grants Commission Special Account. This determination, made under subsection 20(1) of the Financial Management and Accountability Act 1997 (FMA Act), specifies the nature of amounts that may be credited to the account and the purposes for which amounts may be debited from it. Section 2 outlines the establishment of the account, while section 6 details the purposes for which the account may be debited, such as holding miscellaneous moneys on behalf of others and facilitating payments to rightful owners or compensation beneficiaries. The obligations imposed by the determination on the Commonwealth Grants Commission include the maintenance of the Special Account for specific purposes as outlined in the determination. The Commission is required to ensure that all amounts credited to the account are in line with the specified purposes and that any debits are justified and comply with the provisions of the FMA Act. Additionally, the determination mandates the Commission to regularly report on the transactions and balances of the account, ensuring transparency and accountability in the use of the funds. In terms of potential consequences for non-compliance, the determination does not explicitly detail offences, penalties, or civil/criminal consequences. However, breaches of the FMA Act or related legislation could result in disciplinary action, financial penalties, or other legal consequences. The determination itself is subject to disallowance by either House of Parliament within five sitting days of tabling, and if not disallowed, it comes into effect on the calendar day after the last day on which it could have been disallowed. This procedural safeguard ensures that the establishment and operation of the Special Account are subject to parliamentary oversight and scrutiny.