Overview

The Financial Management and Accountability Act 1997 was enacted to establish a robust framework for the management and accountability of Commonwealth finances. This Act, introduced by the Australian Parliament, aims to ensure that public funds are used efficiently, effectively, and in accordance with legal and policy directives. One of the mechanisms established by the Act is the ability to create Special Accounts, which are used to segregate and manage specific funds within the Consolidated Revenue Fund. Determination 2005/17, issued under the authority of the Minister for Finance and Administration, was made to abolish the National Film and Sound Archive Account. This Special Account was established to manage funds specifically for the activities of the National Film and Sound Archive. However, as the activities it supported were no longer being undertaken by the relevant agency, the Special Account was deemed unnecessary. The decision to abolish the account was made in consultation with the Department of Communications, Information Technology and the Arts, which agreed with the determination. Given the internal nature of this change, no further consultation was required under the Legislative Instruments Act 2003.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2005/17 applies to the abolition of the National Film and Sound Archive Account, an established Special Account within the Consolidated Revenue Fund (CRF) of the Commonwealth of Australia. The Act affects the Department of Communications, Information Technology and the Arts, which is the agency responsible for the account and has requested its abolition due to the cessation of related activities. The determination operates under the authority of the Minister for Finance and Administration, who has the power to make such determinations without the necessity for parliamentary disallowance. Notably, the abolition of Special Accounts through such determinations does not require tabling in Parliament, unlike other determinations that establish or vary Special Accounts. The determination comes into effect from the date signed by the Finance Minister, and no further consultation was deemed necessary due to the internal nature of the instrument as per sections 17 and 18 of the Legislative Instruments Act 2003.

Key Provisions

The main operative sections of the Financial Management and Accountability Act 1997 Determination 2005/17 focus on the abolition of the National Film and Sound Archive Account (section 20(3)). This determination is made under the authority of the Minister for Finance and Administration, and it specifies that the National Film and Sound Archive Account will no longer be in effect from the date signed by the Finance Minister. This legislative instrument follows the requirements set out in section 20 of the FMA Act, which governs the establishment and management of Special Accounts within the Consolidated Revenue Fund (CRF). The obligations and requirements imposed by this Act on the parties involved, particularly the Department of Communications, Information Technology and the Arts, include ensuring that the Special Account is no longer used for any financial transactions once the determination comes into effect. The agency must cease any crediting or debiting activities associated with the National Film and Sound Archive Account and redirect any financial activities to other appropriate accounts as necessary. The determination also requires the agency to provide any necessary documentation or records to support the transition away from using the Special Account. Offences, penalties, or consequences for breach of the provisions in the FMA Act or its determinations are not explicitly detailed in the Explanatory Statement provided. However, it is important to note that breaches of financial management laws generally can lead to civil or criminal penalties, including fines and imprisonment, depending on the severity and intent behind the breach. The specific penalties would be determined by the courts based on the particular circumstances of each case. For internal machinery of government purposes, as mentioned, no consultation was considered necessary with other persons outside of the Department of Communications, Information Technology and the Arts, as per sections 17 and 18 of the Legislative Instruments Act 2003.