EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Determination 2005/16 to establish a Special Account
Purposes of Determination 2005/16
The attached instrument makes a determination under subsection 20 (1) of the Financial Management and Accountability Act 1997 (FMA Act) to establish a Special Account entitled Other Trust Moneys - Bureau of Meteorology Special Account. It also specifies the nature of amounts that may be credited to, and the purposes for which amounts may be debited from, the Other Trust Moneys - Bureau of Meteorology Special Account.
Special Accounts Generally
In accordance with 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 used unless in accordance with an appropriation by the Parliament for the purposes of the Commonwealth. This determination establishes a Special Account, and sets out the amounts that may be credited to the Account and the purposes for which it may be debited. Special Accounts established by determination are supported by an appropriation under section 20 of the FMA Act. In effect, Special Accounts allow specified amounts from the CRF to be expended for a particular specified purpose.
The Finance Minister must table a copy of a determination relating to a Special Account in each House of Parliament. Either House may disallow a determination within five sitting days of tabling. If the determination is not disallowed, it comes into effect on the calendar day after the last day on which it could have been disallowed. Regulation 10 of the Legislative Instruments Regulations 2004 preserves the disallowance provisions under section 22 of the FMA Act by exempting Special Account determinations from subsections 57(2) and 57(5) of the Legislative Instruments Act 2003.
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.
Operation of the Determination 2005/16
Purpose of the Other Trust Moneys - Bureau of Meteorology Special Account
The determination is required in order to establish a Special Account, to enable the Bureau of Meteorology to temporarily hold amounts on behalf of persons or entities that are not subject to the FMA Act.
At the commencement of the FMA Act on 1 January 1998 a determination of the Finance Minister created Other Trust Moneys Special Accounts for all agencies that existed at that time. The Bureau of Meteorology was created after 1 January 1998 and therefore requires its own Other Trust Moneys Special Account.
Other Trust Moneys Special Accounts provide agencies with an ability to hold amounts on behalf of others and the appropriation to expend these amounts. Typically these amounts are used to accommodate small amounts of miscellaneous moneys that the agency is holding on behalf others. For example the Other Trust Moneys Account may be used to provide an appropriation to allow moneys found by Commonwealth officials to be paid to their rightful owner once the owner has been identified. It may also be used to hold amounts received from Comcare in relation to employees entitled to receive workers’ compensation payments.
Up until this time the Bureau of Meteorology has not identified amounts that it required to hold in an Other Trust Moneys Special Account.
Should the Bureau of Meteorology change its name, due to a change in legislation or for some other reason, it is intended that the Special Account be retained by the successor agency. This will enable the amounts in the Special Account at that time to remain with the relevant agency.
Clause 6 specifies the purposes for which a Special Account can be debited.
- Paragraph 6(a) describes the primary purpose for expenditure of amounts from the Special Account.
- Paragraph 6(b) allows the Special Account to be debited, in a manner that would otherwise be permitted by section 28 of the FMA Act. It is included to simplify accounting for these transactions.
Consultation
The Bureau of Meteorology is the agency affected by this instrument. The agency was provided with drafts of the instrument before it was finalised and agree with the form of the instrument. No community consultation was carried out as the instrument is for machinery of government purposes only (see sections 17 and 18 of the Legislative Instruments Act 2003).
Estimates of transactions on the Other Trust Moneys - Bureau of Meteorology Special Account
| Opening Balance 2005-06 2004-05 $’000 | Credits 2005-06 2004-05 $’000 | Debits 2005-06 2004-05 $’000 | Closing Balance 2005-06 2004-05 $’000 |
Other Trust Moneys - Bureau of Meteorology Special Account | 0 | 600 | 600 | 0 |
0 | 500 | 500 | 0 |
Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted by the Parliament of Australia to provide a framework for the financial management and accountability of Commonwealth entities. The Act aims to ensure that public money is managed in a prudent and accountable manner, in accordance with the appropriation by Parliament. The 2005 Determination 2005/16 under the FMA Act was made to establish a Special Account, specifically the Other Trust Moneys - Bureau of Meteorology Special Account, to enable the Bureau of Meteorology to temporarily hold amounts on behalf of persons or entities that are not subject to the FMA Act. The Bureau of Meteorology was established after the commencement of the FMA Act and required its own Other Trust Moneys Special Account to accommodate small amounts of miscellaneous moneys held on behalf of others, such as moneys found by Commonwealth officials or amounts received from Comcare in relation to workers’ compensation payments. The determination outlines the nature of amounts that may be credited to, and the purposes for which amounts may be debited from, the Special Account. The determination was agreed upon by the Bureau of Meteorology and no community consultation was conducted as the instrument is for machinery of government purposes only.
The determination to establish the Other Trust Moneys - Bureau of Meteorology Special Account under the FMA Act serves to provide the Bureau of Meteorology with an appropriation to hold and expend amounts on behalf of others. This includes holding moneys found by Commonwealth officials until the rightful owner is identified and receiving amounts from Comcare for employees entitled to workers' compensation payments. The Special Account is intended to remain with the relevant agency if the Bureau of Meteorology changes its name or is otherwise restructured. The determination specifies the purposes for which the Special Account can be debited, primarily for expenditures related to the amounts held on behalf of others and to simplify accounting for these transactions. The determination was tabled in each House of Parliament and, if not disallowed within five sitting days, comes into effect on the calendar day after the last day on which it could have been disallowed.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2005/16, issued by the Minister for Finance and Administration, establishes a Special Account named the Other Trust Moneys - Bureau of Meteorology Special Account. This Special Account is intended for the Bureau of Meteorology to temporarily hold funds on behalf of individuals or entities not governed by the Financial Management and Accountability Act 1997 (FMA Act). The establishment of this account aligns with the constitutional requirement 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 a parliamentary appropriation. This determination outlines the nature of the amounts that can be credited to and debited from the Special Account, ensuring that the funds are used for specific purposes, such as holding small miscellaneous moneys or facilitating payments to rightful owners. The determination also allows the Special Account to be retained by any successor agency should the Bureau of Meteorology undergo a name change, ensuring continuity in fund management. The instrument is subject to disallowance by either House of Parliament within five sitting days of tabling, after which it comes into effect unless disallowed.
Key Provisions
The Financial Management and Accountability Act 1997 (FMA Act) operates as the foundational legislation for financial management within the Australian government. Under this Act, the determination 2005/16 establishes a Special Account titled "Other Trust Moneys - Bureau of Meteorology Special Account" (section 20(1)). This Special Account is specifically designed to allow the Bureau of Meteorology to temporarily hold funds on behalf of individuals or entities not governed by the FMA Act. This mechanism is crucial for accommodating miscellaneous moneys that the Bureau might be holding on behalf of others, such as moneys found by Commonwealth officials or payments received from Comcare for workers' compensation.
The obligations imposed by the determination on the Bureau of Meteorology and other relevant parties are primarily centred around the proper management and use of funds within the Special Account. The Bureau of Meteorology must ensure that all transactions within the account adhere to the purposes specified in the determination, which include holding funds temporarily and making payments in accordance with the FMA Act (section 6). The Bureau must also ensure that any debits from the account are for purposes that align with the legislative requirements set forth in the determination. Additionally, the Finance Minister is obligated to table a copy of the determination in each House of Parliament, allowing for parliamentary oversight and potential disallowance (section 22 of the FMA Act).
Failure to comply with the provisions of the determination may result in civil or criminal consequences. Although the document does not specify exact penalties, breaches of financial management regulations under the FMA Act can lead to significant penalties, including fines and imprisonment. The severity of these penalties would be determined based on the specific breach and applicable laws. The importance of adhering to these obligations is underscored by the requirement for the Bureau of Meteorology to consult with the relevant authorities and ensure that all transactions within the Special Account are properly documented and justified.