Overview

The Financial Management and Accountability Act 1997 was enacted by the Australian Parliament to provide a framework for the financial management and accountability of Commonwealth entities. Determination 2005/18, issued under subsection 20(3) of the FMA Act, aims to abolish the Nationally Funded Medical Specialty Centres Account. This determination was made in response to the cessation of the activity for which the Special Account was established and was requested by the agency responsible for managing the account. The Minister for Finance and Administration issued this determination to streamline financial management processes and ensure that resources are allocated in line with current government activities. The abolition of the Special Account does not require tabling in Parliament, as it falls under internal machinery of government purposes.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2005/18, issued by the Minister for Finance and Administration, pertains to the abolition of the Nationally Funded Medical Specialty Centres Account, a Special Account under the Commonwealth of Australia. Special Accounts are established by a determination under section 20 of the FMA Act, which specifies the amounts that may be credited to the account and the purposes for which it may be debited. This particular account was no longer necessary as the activity it was associated with is no longer conducted by the responsible agency. The abolition of the account takes effect from the date signed by the Finance Minister, and the Department of Health and Ageing, the affected agency, concurs with the form of the instrument. It is noteworthy that while determinations establishing or varying Special Accounts must be tabled in Parliament, those that abolish such accounts are exempt from this requirement. Additionally, no consultation was deemed necessary with other parties, as the instrument is for internal government machinery purposes only.

Key Provisions

The main operative sections of the determination, F2005L03804, pertain to the abolition of the Nationally Funded Medical Specialty Centres Account under subsection 20(3) of the Financial Management and Accountability Act 1997 (FMA Act) (section 1). The determination effectively eliminates the Special Account, which had been established for the specific purpose of funding medical specialty centres. This decision follows the cessation of the activities associated with the account, as confirmed by the agency responsible for its management (section 2). The determination was signed by the Minister for Finance and Administration, and it came into effect on the date of signing (section 3). The obligations and requirements imposed by this Act primarily focus on the management and oversight of Special Accounts within the Consolidated Revenue Fund (CRF). Under the FMA Act, any establishment or variation of Special Accounts must be made by a determination that specifies the amounts to be credited and the purposes for which they may be debited (section 20). Such determinations must be tabled in each House of Parliament if they establish or vary a Special Account (section 22). However, determinations that abolish Special Accounts, like the one in question, do not require tabling in Parliament (section 22). The agency responsible for the Special Account, in this case, the Department of Health and Ageing, has the authority to request the abolition of an account that is no longer necessary due to changes in the activities it was designed to support (section 4). The determination does not explicitly detail any offences, penalties, or consequences for non-compliance, as it focuses solely on the abolition of a Special Account that is no longer required. Given that the Special Account is being abolished at the request of the managing agency and no further action is needed from the Parliament, there are no immediate sanctions or penalties associated with this determination. However, the FMA Act does provide for a range of financial and administrative penalties for breaches of financial management and accountability provisions, which could apply if the abolition process were mishandled or if there were any subsequent misuse of funds.