EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Administration

Financial Management and Accountability Act 1997

Determination 2005/44 to establish a Special Account

Purposes of Determination 2005/44

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, National Collections 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 National Collections 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 2005/44

Purpose of the National Collections Special Account

The determination is required to establish a Special Account, enabling a secretariat within the Department of Communications, Information Technology and the Arts (DCITA) to manage the National Collections Programme.

The National Collections Special Account will be used to conduct projects, programmes and strategies associated with the future directions, needs and priorities of the collections sector.

The collections sector comprises the libraries, museums, archives and galleries, keeping places, historic houses, etc. in Australia that hold the distributed national collection (DNC).  The DNC incorporates the significant objects held in collections across Australia that tell the nation’s story and contribute to defining the Australian identity and national memory.  The Australian Government is committed to ensuring the collections sector plays a vital role in the lives of all Australians.  In recent years increased focus has been placed on collaboration across the sector to better deliver government objectives.

The National Collections Programme has funded initiatives of the Cultural Ministers’ Council (CMC) including the Australian Museums and Galleries Online (AMOL) operations and redevelopment, secretariat and administrative support (travel, accommodation, directors fees, etc.) for the National Collections Advisory Forum (NCAF), various projects/consultancies that were part of the NCAF’s work programme and it is currently funding the Collections Council of Australia.

The Commonwealth, State and Territory Governments contribute funds to the National Collections Program.  Funds contributed will be held in the Special Account until required.

Given the joint funding arrangements, the Special Account can provide:

• transparency in, and timely access to, financial status reports for all parties involved;
• an assurance to State and Territory governments that contributions have been set aside for the agreed purposes; and
• a standing appropriation to allow the CMC to approve spending proposals requiring payments across financial years.

Clause 6(1) specifies the purposes for which a Special Account can be debited.

• Paragraph 6(1)(a) describes the activities for which expenditure can be made from the Special Account.
• Paragraph 6(1)(b) allows administration costs, including such items as auditing, reporting, budgeting, accounting and information technology services incurred in the course of operating the Special Account, to be debited from the Special Account.
• Paragraph 6(1)(c) gives the ability to reduce the balance of the Special Account without a corresponding payment.  It does not allow amounts to be transferred to another Special Account, or to be allocated for any other purpose, that is not consistent with the purposes of the Special Account.
• Paragraph 6(1)(d) 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 Department of Communications, Information Technology and the Arts 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 National Collections Special Account