EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Determination 2005/23 to establish a Special Account
Purposes of Determination 2005/23
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 - Australian Communications and Media Authority 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 - Australian Communications and Media Authority 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 2005/23
Purpose of the Other Trust Moneys - Australian Communications and Media Authority Special Account
The determination is required in order to establish a Special Account, to enable the Australian Communications and Media Authority to temporarily hold amounts on behalf of persons or entities that are not subject to the FMA Act.
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 Other Trust Moneys Special Accounts are used to accommodate small amounts of miscellaneous moneys. For example the Other Trust Moneys Special 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.
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 Australian Communications and Media Authority was created after 1 January 1998 and therefore an Other Trust Moneys Special Account needs to be established. .
The Australian Communications and Media Authority was created on 1 July 2005 and has identified amounts that will be required to hold in an Other Trust Moneys Special Account.
Should the Australian Communications and Media Authority 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 Australian Communications and Media Authority 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 - Australian Communications and Media Authority Special Account
| Opening Balance 2006-07 2005-06 $’000 | Credits 2006-07 2005-06 $’000 | Debits 2006-07 2005-06 $’000 | Closing Balance 2006-07 2005-06 $’000 |
Other Trust Moneys - Australian Communications and Media Authority Special Account | 160 | 1160 | 1160 | 160 |
0 | 1160 | 1000 | 160 |
Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted by the Australian Parliament to ensure effective financial management and accountability within the Commonwealth. The Act provides a framework for the handling of public funds, including the establishment of Special Accounts to manage specific financial activities. Determination 2005/23 under the FMA Act was made by the Minister for Finance and Administration to establish a Special Account entitled "Other Trust Moneys - Australian Communications and Media Authority Special Account". This determination addresses the need for the Australian Communications and Media Authority (ACMA) to temporarily hold moneys on behalf of persons or entities not governed by the FMA Act. The primary objective is to provide ACMA with the necessary appropriation to expend these amounts, facilitating the handling of miscellaneous moneys such as found moneys or Comcare payments. The establishment of this Special Account ensures that funds are managed appropriately and are retained with the relevant agency if ACMA undergoes a name change.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2005/23 establishes a Special Account titled the Other Trust Moneys - Australian Communications and Media Authority Special Account, to allow the Australian Communications and Media Authority (ACMA) to temporarily hold funds on behalf of persons or entities that are not subject to the FMA Act. This Special Account is a part of the Consolidated Revenue Fund and is established to facilitate the temporary holding and expenditure of small amounts of miscellaneous moneys. The establishment of this Special Account ensures that ACMA can manage funds on behalf of third parties, such as holding moneys found by Commonwealth officials until they can be returned to their rightful owners, or managing payments to employees entitled to workers’ compensation from Comcare. The creation of this account is necessary as ACMA was established after the commencement of the FMA Act on 1 January 1998, and therefore, did not have a Special Account established at that time.
The determination outlines the nature of the amounts that may be credited to, and debited from, the Special Account, with the primary purpose for expenditure being specified in clause 6(a). This Special Account is supported by an appropriation under section 20 of the FMA Act and is subject to disallowance by either House of Parliament within five sitting days of tabling. If not disallowed, the determination comes into effect on the calendar day after the last day on which it could have been disallowed. The instrument is limited to machinery of government purposes and therefore no community consultation was carried out. The ACMA was provided with drafts of the instrument before it was finalised and agrees with the form of the instrument.
Key Provisions
The Financial Management and Accountability Act 1997 (FMA Act) provides the legislative framework for financial management within the Australian government. One key provision is the establishment of Special Accounts, which allow specified amounts from the Consolidated Revenue Fund (CRF) to be expended for particular purposes. The determination under subsection 20(1) of the FMA Act establishes a Special Account named "Other Trust Moneys - Australian Communications and Media Authority Special Account" (paragraph 1). This account is intended to enable the Australian Communications and Media Authority (ACMA) to temporarily hold funds on behalf of persons or entities not subject to the FMA Act (paragraph 2). The determination specifies that this account can be used for holding small amounts of miscellaneous moneys, such as funds found by Commonwealth officials or payments from Comcare for workers' compensation (paragraph 3).
The obligations under this determination require the Finance Minister to table a copy of the determination in each House of Parliament (paragraph 4). Either House of Parliament may disallow the determination within five sitting days of tabling, and if it is not disallowed, it comes into effect on the calendar day after the last day on which it could have been disallowed (paragraph 5). Additionally, the ACMA must use the Special Account for the specified purposes outlined in the determination, such as holding funds temporarily and ensuring they are appropriately credited and debited (paragraph 6).
In terms of consequences for breach, the determination itself does not specify penalties for non-compliance. However, under the FMA Act, any misuse of public funds or failure to adhere to financial management requirements can result in both civil and criminal penalties. For example, section 38 of the FMA Act provides for civil penalties, including fines, for breaches of financial management provisions. Furthermore, section 40 of the FMA Act outlines criminal penalties, such as imprisonment, for serious breaches involving dishonesty or significant financial loss to the Commonwealth (section 40). These penalties underscore the importance of adhering to the financial management requirements set out in the determination and the broader FMA Act.