Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to enhance the accountability of public administration and financial management within the Commonwealth government. The Act established the framework for effective management of public moneys and requires all revenues and moneys raised or received by the Commonwealth to be deposited into the Consolidated Revenue Fund (CRF). The Act also mandates that all expenditures must be authorised by an appropriation made by Parliament. Determination 2006/15, issued under the authority of the Minister for Finance and Administration, establishes a Special Account within the CRF, specifically titled the Administered Payments and Receipts for Other Entities – Australian Trade Commission Special Account. This Special Account is intended to facilitate the Australian Trade Commission in making payments on behalf of other entities using funds that those entities have paid to the Commission, thus ensuring that the payments can be made from the relevant appropriations available to the entities concerned. The determination outlines the permissible credits to and debits from the Special Account, aiming to streamline financial transactions for these entities while maintaining strict adherence to the financial management principles set forth in the FMA Act. The determination was tabled in Parliament and, following the requisite period, came into effect on 1 July 2006.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) Determination 2006/15 establishes a Special Account named Administered Payments and Receipts for Other Entities – Australian Trade Commission Special Account. This account allows the Australian Trade Commission to make payments on behalf of other entities, holding funds transferred to it by these entities for such transactions. This account is supported by an appropriation under the FMA Act, ensuring that all expenditures are authorised and accountable. The Special Account is subject to disallowance by either House of Parliament within five sitting days of the determination being tabled. The primary purpose of the account is to facilitate payments and collections on behalf of other entities, with incidental costs and operational expenses also debited from the account. The account is designed to simplify accounting for transactions that would otherwise be permitted by section 28 of the FMA Act. The Special Account applies specifically to the Australian Trade Commission and the entities it serves, enabling the Commission to act as an intermediary for financial transactions with overseas entities. The scope of the account is limited to the purposes specified in the determination, including making payments on behalf of other entities, collecting funds on their behalf, and incurring incidental costs associated with operating the account. There are no exclusions or exemptions specified in the determination, and the account is not subject to any particular thresholds. The operation of the account is governed by the provisions of the FMA Act and the terms of the determination, with any amendments to be tabled in Parliament as required.

Key Provisions

The main operative sections of this legislation (Determination 2006/15) establish a Special Account named the Administered Payments and Receipts for Other Entities – Australian Trade Commission Special Account under subsection 20(1) of the Financial Management and Accountability Act 1997 (FMA Act) (paragraph 1). This Special Account is intended to facilitate payments made by offices of the Australian Trade Commission overseas on behalf of other entities, as well as to hold amounts collected by the Australian Trade Commission overseas for these entities (paragraph 4). The determination specifies the nature of the amounts that can be credited to and debited from this Special Account (paragraph 5). The account is designed to operate in alignment with the responsible agency's expected prescription date under the FMA Act, which is set for 1 July 2006 (clause 2). Under this Act, the obligations and requirements imposed on the parties or entities it governs include the establishment of a Special Account for the specific purpose of facilitating financial transactions on behalf of other entities by the Australian Trade Commission. The Special Account will be used to credit amounts paid to the Australian Trade Commission by other entities, on the understanding that these payments will be made to third parties abroad (paragraph 4). It will also credit amounts collected by the Australian Trade Commission on behalf of these entities. The debits from the Special Account are intended for specific purposes such as payments to third parties, incidental costs related to the account's operation, and adjustments to the account balance without necessitating actual payments (paragraph 5). The legislation also outlines potential consequences for non-compliance. While specific offences are not detailed in the provided text, breaches of the Financial Management and Accountability Act 1997, under which this determination operates, can lead to penalties. Such penalties may include fines and, in serious cases, imprisonment. The maximum penalties are not explicitly stated in the provided text but would be governed by the provisions of the FMA Act. Additionally, any failure to comply with the terms of the determination could result in financial mismanagement and could subject the responsible parties to disciplinary actions, including potential termination of employment or contract. The disallowance process under section 22 of the FMA Act provides a mechanism for either House of Parliament to review and potentially reject the determination within five sitting days of it being tabled. If not disallowed, the determination comes into effect on the calendar day following the last day for disallowance.