Overview

The Financial Management and Accountability Act 1997 was enacted by the Australian Parliament to provide a robust framework for the financial management and accountability of Commonwealth agencies. This legislation was introduced to address the need for clear guidelines and oversight in the financial activities of the Commonwealth, ensuring that funds are used effectively and in accordance with parliamentary appropriations. Determination 2005/13, issued under the authority of the Minister for Finance and Administration, is an instrument that establishes a Special Account within the context of the Financial Management and Accountability Act. The determination creates the Other Trust Moneys - National Water Commission Special Account, which allows the National Water Commission to temporarily hold funds on behalf of entities not governed by the Act. This Special Account is crucial for the Commission to manage miscellaneous funds, such as moneys found by Commonwealth officials or amounts received from Comcare for workers’ compensation payments, ensuring these funds are appropriately held and expended according to legislative requirements. The establishment of this account also ensures continuity should the National Water Commission undergo a name change or restructuring.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2005/13 pertains to the establishment of a Special Account within the Commonwealth's Consolidated Revenue Fund, specifically designated for the National Water Commission. This determination, made under the authority of the Minister for Finance and Administration, creates the Other Trust Moneys - National Water Commission Special Account to allow the Commission to temporarily hold funds on behalf of persons or entities not subject to the FMA Act. This Special Account is supported by an appropriation and enables the National Water Commission to manage and expend funds for specified purposes, such as holding small amounts of miscellaneous moneys that are not subject to other appropriations. The determination outlines the nature of transactions that can be credited to and debited from the account, with primary expenditures being for the purposes outlined in clause 6 of the determination. The instrument, which does not require community consultation as it pertains to machinery of government purposes, must be tabled in Parliament, where it can be disallowed within five sitting days of tabling. The Financial Management and Accountability Act 1997 Determination 2005/13 applies exclusively to the National Water Commission, a Commonwealth entity established after the initial creation of Other Trust Moneys Special Accounts for other agencies. The determination specifies that if the Commission's name changes, the Special Account remains with the successor entity to maintain continuity of the funds held. This ensures that any amounts in the account at the time of the name change are retained by the relevant agency. The determination does not extend to other Commonwealth entities unless they are similarly established under the FMA Act or unless otherwise specified by subordinate instruments. Furthermore, the disallowance provisions outlined in the Legislative Instruments Act 2003 do not apply to this determination, as it is exempted by Regulation 10 of the Legislative Instruments Regulations 2004.

Key Provisions

The determination (2005/13) under subsection 20(1) of the Financial Management and Accountability Act 1997 (FMA Act) establishes a Special Account called the Other Trust Moneys - National Water Commission Special Account (section 2). The account allows the National Water Commission to temporarily hold moneys on behalf of individuals or entities that are not subject to the FMA Act. The Act requires that all revenues or moneys raised or received by the Executive Government of the Commonwealth form one Consolidated Revenue Fund (CRF) and can only be used in accordance with an appropriation by Parliament for the purposes of the Commonwealth (section 1). Special Accounts are a mechanism to allow specified amounts from the CRF to be expended for a particular specified purpose. The determination specifies the amounts that may be credited to the account and the purposes for which it may be debited (section 6). The Finance Minister must table a copy of the determination in each House of Parliament, and either House may disallow the determination within five sitting days of tabling (section 22). If not disallowed, the determination comes into effect on the calendar day after the last day on which it could have been disallowed (section 22). The determination imposes several obligations and requirements on the National Water Commission. Firstly, the account can only be debited for specific purposes as outlined in the determination (section 6). The primary purpose for expenditure of amounts from the Special Account is to enable the Commission to temporarily hold moneys on behalf of others, such as small amounts of miscellaneous moneys or moneys found by Commonwealth officials that need to be returned to their rightful owner (section 6(a)). Additionally, the account can be debited in a manner that would otherwise be permitted by section 28 of the FMA Act, which is included to simplify accounting for these transactions (section 6(b)). The Commission must ensure that the amounts held in the account are used solely for the specified purposes and in accordance with the FMA Act. Furthermore, the determination requires the Commission to maintain accurate records of all transactions related to the Special Account and to report on the account's activities as necessary. The determination does not explicitly outline offences, penalties, or consequences for breach; however, any misuse of the Special Account would likely be subject to the general provisions of the FMA Act. The FMA Act sets out various offences related to financial management and accountability, and breaches of these provisions can result in criminal or civil penalties. For instance, section 32 of the FMA Act makes it an offence to misapply Commonwealth moneys, which can result in a fine of up to 10,000 penalty units or imprisonment for up to five years, or both. Similarly, section 33 makes it an offence to cause the Commonwealth to suffer a financial loss, which can result in a fine of up to 20,000 penalty units or imprisonment for up to ten years, or both. The National Water Commission would need to ensure compliance with the FMA Act to avoid any potential criminal or civil consequences.