EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Determination 2006/05 to establish a Special Account
Purposes of Determination 2006/05
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 Sports Anti-Doping 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 Sports Anti-Doping 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.
Special Accounts can also be abolished by a determination of the Finance Minister. However, there is no requirement to table the determination to abolish a Special Account.
Operation of the Determination 2006/05
Purpose of the Other Trust Moneys – Australian Sports Anti-Doping Authority Special Account
The determination is required in order to establish a Special Account, to enable the Australian Sports Anti-Doping Authority to temporarily hold amounts on behalf of persons or entities other than the Commonwealth.
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 Sports Anti-Doping Authority was created on 14 March 2006 and has identified amounts that will be required to hold in an Other Trust Moneys Special Account.
The estimates of transactions on the Special Account represent superannuation amounts for former employees which are expected to be paid to the relevant superannuation fund. These moneys are expected to be paid out within the 2005-06 financial year.
Should the Australian Sports Anti-Doping 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 5 specifies the purposes for which a Special Account can be debited.
- Paragraph 5(a) describes the primary purpose for expenditure of amounts from the Special Account.
- Paragraph 5(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 Sports Anti-Doping Authority is the agency affected by this instrument. The agency was provided with drafts of the instrument and agrees with the form of the instrument. As the instrument is for internal machinery of government purposes only, no consultation was considered necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).
Estimates of transactions on the Other Trust Moneys – Australian Sports Anti-Doping 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 Sports Anti-Doping Authority Special Account | 0 | 0 | 0 | 0 |
0 | 67 | 67 | 0 |
Overview
The Financial Management and Accountability Act 1997 was enacted to ensure the accountability and integrity of the Commonwealth's financial management. The Act, administered by the Parliament of Australia, aims to establish robust frameworks for the management of public funds and to ensure transparency and compliance with legislative requirements. In 2006, the Act was further clarified and expanded through Determination 2006/05, which aimed to address the need for the Australian Sports Anti-Doping Authority (ASADA) to temporarily hold and manage funds on behalf of third parties. This Special Account, titled the Other Trust Moneys – Australian Sports Anti-Doping Authority Special Account, was established to facilitate the holding of miscellaneous funds such as superannuation payments for former employees. The determination outlines the specific purposes for which the account can be debited, ensuring that funds are used in accordance with legislative provisions and for the intended purposes, while also allowing for flexibility in accounting for certain transactions.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2006/05 establishes a Special Account named the Other Trust Moneys – Australian Sports Anti-Doping Authority Special Account, which is designed to enable the Australian Sports Anti-Doping Authority to temporarily hold funds on behalf of entities other than the Commonwealth. The purpose of this Special Account is to provide a mechanism for the temporary holding of funds and the appropriation of these funds for specified purposes, such as holding superannuation amounts for former employees and other miscellaneous moneys. The account is funded through an appropriation under section 20 of the FMA Act, which allows designated funds from the Consolidated Revenue Fund to be used for the specified purpose. The Finance Minister must table a copy of this determination in each House of Parliament, and either House can disallow it 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. Special Accounts can also be abolished by a determination of the Finance Minister, although there is no requirement to table such a determination.
The Other Trust Moneys – Australian Sports Anti-Doping Authority Special Account is intended to remain with the relevant agency if the Australian Sports Anti-Doping Authority changes its name due to legislative or other changes. The account is intended to hold funds temporarily and to provide a mechanism for the payment of these funds to their rightful owners. The determination specifies the purposes for which a Special Account can be debited, including the primary purpose of paying superannuation amounts to relevant superannuation funds and any other permitted transactions under section 28 of the FMA Act. This provision is included to simplify accounting for these transactions. The Australian Sports Anti-Doping Authority, as the affected agency, was provided with drafts of the instrument and agrees with its form. No consultation was considered necessary with other persons as the instrument is for internal machinery of government purposes.
Key Provisions
The Financial Management and Accountability Act 1997 (FMA Act) governs the establishment of Special Accounts, which are accounts created to manage specific funds within the Consolidated Revenue Fund (CRF) for particular purposes. Determination 2006/05 under the FMA Act establishes a Special Account named the Other Trust Moneys – Australian Sports Anti-Doping Authority Special Account. This account allows the Australian Sports Anti-Doping Authority (ASADA) to temporarily hold moneys on behalf of others, facilitating the payment of superannuation amounts for former employees to relevant superannuation funds. The account is designed to accommodate small amounts of miscellaneous moneys and can be debited for specific purposes as outlined in the determination.
Under the FMA Act, the Finance Minister is required to table a copy of any determination relating to a Special Account in each House of Parliament. The establishment of the Other Trust Moneys – Australian Sports Anti-Doping Authority Special Account follows this requirement, and any disallowance must occur within five sitting days of tabling. If not disallowed, the determination takes effect on the day after the disallowance period ends. This process ensures that the establishment of Special Accounts is subject to parliamentary scrutiny. Furthermore, Special Accounts can be abolished by a separate determination of the Finance Minister, though such a determination does not need to be tabled in Parliament.
The obligations imposed by Determination 2006/05 on ASADA include ensuring that the funds held in the Other Trust Moneys – Australian Sports Anti-Doping Authority Special Account are used strictly for the specified purposes, primarily the payment of superannuation amounts to former employees. ASADA must comply with the provisions set out in the determination and ensure that any debits from the account are in accordance with the FMA Act and the determination itself. The agency is also responsible for reporting and accounting for the transactions in the Special Account to maintain transparency and compliance with financial management standards.
The determination includes provisions that outline the penalties for non-compliance with the FMA Act or the terms of the determination. While specific penalties are not detailed in the explanatory statement, breaches of the FMA Act generally result in civil or criminal penalties, depending on the nature and severity of the breach. Civil penalties can include fines and other monetary penalties, while criminal offences can result in more severe penalties, including imprisonment. The maximum penalties for such breaches are determined by the courts and can vary widely based on the circumstances of the case. The overarching aim is to ensure that funds within Special Accounts are managed responsibly and in accordance with legislative requirements.