EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Determination 2006/06 to vary and abolish a Special Account
Purposes of Determination 2006/06
The attached instrument makes a determination under section 20 of the Financial Management and Accountability Act 1997 (FMA Act) to vary and subsequently abolish the CrimTrac Account.
Special Accounts generally
In accordance with the Constitution, all revenues or moneys raised or received by the Government of the Commonwealth form one Consolidated Revenue Fund (CRF) and may not be spent unless under an appropriation by the Parliament for the purposes of the Commonwealth. A Special Account is established by a determination that sets out the amounts that may be credited 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 amounts from the CRF to be spent on a purpose specified in the Special Account.
Determinations that establish Special Accounts, or vary determinations that establish Special Accounts, are subject to section 22 of the FMA Act. Section 22 of the FMA Act requires the Finance Minister to table a copy of the establishing or varying determination 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 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 2006/06
Purpose of the CrimTrac Account
A new Special Account, entitled National Policing Information Systems and Services Special Account (‘the new Account’) is required in order to give effect to changes that are required to the CrimTrac Account, but which it is not practical to make by variation to the CrimTrac Account due to the way in which the original determination was structured.
The current purposes of the CrimTrac Account are:
for expenditure incurred to develop, procure, implement and operate new information systems and to ensure that appropriate services are provided to CrimTrac clients in relation to the new and the existing Information Technology systems.
Changes required
A clause has been inserted to allow amounts to be debited from the CrimTrac Account and credited to the new Account.
Limitations in the structure of the original determination
It is not practical to vary the determination that established the CrimTrac Account. This is because the form of the original determination is not consistent with current determinations. Accordingly, a new Account is being established (determination 2006/07) to provide for the continuation of the activities of the CrimTrac Account, the incorporation of the necessary changes, and to ensure that the determination is as clear and informative as possible.
Effect of this determination
The CrimTrac Account, is being varied by this determination (determination 2006/06) to enable its balance to be credited to the new Account. Once the balance of the CrimTrac Account reaches zero, clause 4 of the determination will abolish the CrimTrac Account.
Consultation
The CrimTrac Agency 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 CrimTrac Account
| Opening Balance 2005-06 $’000 | Credits 2005-06 $’000 | Debits 2005-06 (1) $’000 | Closing Balance 2005-06 $’000 |
CrimTrac Account | 36,424 | 0 | 36,242 | 0 |
1. Balance debited from the CrimTrac Account and credited to the new Account.
Overview
The Financial Management and Accountability Act 1997 was enacted to provide a framework for the management and accountability of Commonwealth finances, ensuring that all revenues and moneys raised or received by the Government are properly managed and authorised for specific purposes. The Act establishes the Consolidated Revenue Fund, which serves as the central repository for all Commonwealth funds, and it mandates that these funds may only be spent under an appropriation by the Parliament. The 2006 Determination 2006/06 issued under this Act by the Minister for Finance and Administration aims to vary and ultimately abolish the CrimTrac Account, a Special Account established to manage specific expenditures related to the development, procurement, implementation, and operation of information systems and services for the CrimTrac Agency. The policy objective of this determination is to streamline the financial management of the CrimTrac Agency by creating a new Special Account with a more consistent and clear structure, while ensuring the continuity of necessary services and operations. This determination is subject to parliamentary oversight, with the Finance Minister required to table it in each House of Parliament, though disallowance is possible within a specified period.
Scope and Application
The Financial Management and Accountability Act 1997 (FMA Act) provides the framework under which the Commonwealth Government manages its finances, including the establishment and management of Special Accounts. Determination 2006/06, issued under the authority of the Minister for Finance and Administration, outlines the variation and subsequent abolition of the CrimTrac Account, a Special Account established under the FMA Act. This determination is applicable solely to the Commonwealth Government and the CrimTrac Agency, which is responsible for the national criminal history record repository. The scope of the determination involves the reallocation of funds from the CrimTrac Account to a newly established National Policing Information Systems and Services Special Account. This new account is intended to support the development, procurement, implementation, and operation of new information systems, as well as providing necessary services to CrimTrac clients.
The determination, which is subject to disallowance by either House of Parliament if tabled, aims to address structural limitations in the original CrimTrac Account determination that make variation impractical. Once the balance of the CrimTrac Account is fully transferred to the new account, the CrimTrac Account will be abolished. Notably, unlike the varying and establishing determinations, the abolition determination does not require tabling in Parliament. This legislative instrument is confined to internal government machinery and did not necessitate broader consultation beyond the affected agency.
Key Provisions
The main operative sections of Determination 2006/06 (subsections 2(1) and 4) are pivotal in establishing the process for the variation and subsequent abolition of the CrimTrac Account. The determination enables the transfer of the CrimTrac Account's balance to a new account, titled the National Policing Information Systems and Services Special Account (subsection 2(1)). Once the balance of the CrimTrac Account reaches zero, clause 4 of the determination will formally abolish the CrimTrac Account. This procedural shift is necessary to accommodate the changes required for the activities related to the CrimTrac Account while ensuring that the determination is structured in a clear and informative manner.
The obligations imposed by the Act on the parties involved, particularly the Finance Minister, include the responsibility to establish, vary, or abolish Special Accounts as necessary. The Finance Minister must table a copy of any determination establishing or varying a Special Account in each House of Parliament, as required by section 22 of the Financial Management and Accountability Act 1997 (FMA Act). This requirement ensures transparency and parliamentary oversight over the financial activities governed by Special Accounts. Furthermore, the determination must be in line with the requirements of the FMA Act and the Legislative Instruments Act 2003, ensuring that the process adheres to legislative standards and regulatory frameworks.
Breaches of the provisions within the Financial Management and Accountability Act 1997 can lead to both civil and criminal consequences. Under the FMA Act, penalties for non-compliance can include fines and imprisonment. For example, if the Finance Minister fails to table a determination in Parliament as required by section 22, the Minister could face criminal penalties, including fines and imprisonment for serious breaches. The specifics of these penalties are outlined in the FMA Act and related legislation, ensuring that there are clear repercussions for non-compliance with the Act’s provisions. Additionally, the disallowance process outlined in section 22 allows either House of Parliament to reject a determination within five sitting days of tabling, further enforcing accountability and oversight over the financial management activities governed by the Act.