Overview

The Financial Management and Accountability Act 1997 was enacted to establish a framework for the financial management and accountability of the Commonwealth. This Act, and the subsequent determinations under it, aim to ensure that the government's financial activities are conducted in a transparent, accountable, and efficient manner. The 2005 determination to vary a Special Account was introduced to address the need for clarity and precision in the purposes for which Special Accounts can be debited, as well as to update the format of these accounts to improve readability and accessibility. This determination was made by the Minister for Finance and Administration and is supported by an appropriation under section 20 of the FMA Act. The policy objective is to maintain the integrity and clarity of the financial management practices within the Commonwealth. The variation of the CSS (Commonwealth Superannuation Scheme) Special Account under this determination ensures that the account's purposes remain consistent with the overarching policy that moneys from employer contributions are spent on the administration of the CSS Scheme, while moneys from the super fund itself are used for the investment and management of that fund. The changes made, including the addition of provisions for debiting incidental activities and repaying amounts when permitted by other laws, are intended to enhance the clarity and effectiveness of financial management within the scheme. This determination was made in consultation with the CSS Board, and no community consultation was necessary as it pertains solely to machinery of government purposes.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) applies to all Commonwealth entities, which include departments, statutory authorities, and prescribed entities. The Act governs the financial management and accountability of these entities, ensuring that they comply with the legal and regulatory requirements for the proper management of public funds. The Act's provisions apply across the Commonwealth of Australia, covering all federal entities and transactions that involve the use of public money. The legislation is supported by the Consolidated Revenue Fund, which is the central fund for all Commonwealth revenues and expenditures. The Act includes provisions for the establishment and management of Special Accounts, which are used for specific purposes outlined in the Act or related legislation. The Act also allows for the variation of Special Accounts through subordinate instruments, such as the attached determination, which adjusts the purpose clauses of the CSS Special Account to ensure they are accurately described and consistent with the new template format. The changes in the determination are aimed at improving the clarity and precision of the Special Account purposes, without altering the primary scope of the account. The Financial Management and Accountability (Special Account) Determination 2005/40 applies specifically to the CSS Special Account, which was established under the FMA Act. This determination modifies the original Special Account determination to align with the new template format and to enhance the clarity of the account's purpose clauses. The changes introduced by the determination include a provision for debiting amounts relating to incidental activities, the ability to return excess amounts to the Budget, and a clause to allow for repayments when permitted by other laws. These changes aim to simplify accounting and ensure that the account's operations are transparent and compliant with the FMA Act. The determination is subject to disallowance by either House of Parliament if tabled, and if not disallowed, it comes into effect on the calendar day after the last day on which it could have been disallowed. The CSS Board, which is the affected agency, has been consulted and agrees with the form of the instrument. The determination is for machinery of government purposes and does not require community consultation.

Key Provisions

The primary sections of the determination (section 20(2) of the Financial Management and Accountability Act 1997) vary a previous Special Account Determination that established the Commonwealth Superannuation Scheme (CSS) Special Account. This variation aims to align the Special Account with a new template for all Special Account determinations and enhance the clarity of the purposes for which the account can be debited. The determination specifies that the account can be debited for the administration of the CSS Scheme by the CSS Board, the performance of any function conferred on the CSS Board under legislation, and the management and investment of the CSS Fund by the CSS Board. Additionally, it includes provisions for debiting amounts relating to incidental activities, such as administration costs, and returning excess amounts to the Budget. The obligations imposed on parties governed by this Act include the requirement for the Minister for Finance and Administration to table a copy of the determination in each House of Parliament. Either House may disallow the determination 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 CSS Board, as the affected agency, must ensure compliance with the new provisions outlined in the determination. Breaches of the provisions set out in this determination may result in various consequences. While the determination itself does not specify maximum penalties for breaches, contraventions of the Financial Management and Accountability Act 1997 may lead to criminal or civil penalties, depending on the nature and severity of the breach. The Act provides for various offences, including misapplication of Commonwealth moneys, unauthorised expenditure, and fraudulent conduct, each carrying potential penalties that can include fines and imprisonment. Compliance with the Act is crucial to avoid such consequences.