Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, was introduced to ensure that the Commonwealth's financial management practices are transparent, accountable, and compliant with the Constitution. This Act provides the legislative framework within which the government can allocate and manage its financial resources effectively, ensuring that all revenues raised or received by the government form one Consolidated Revenue Fund and may not be spent without appropriate parliamentary appropriation. The Act also establishes mechanisms for the creation and abolition of Special Accounts, which allow for the spending of funds from the CRF on specified purposes. Determination 2006/19, issued under section 20 of the FMA Act by the Minister for Finance and Administration, aims to vary and ultimately abolish the Standing Committee on Recreation and Sport Consultant Account. This change is necessitated by structural limitations in the original determination that prevent necessary adjustments from being made. Instead, a new Sport and Recreation Special Account is being established to continue the activities of the existing account, incorporate required changes, and provide clarity. The new account will allow for the seamless continuation of funding for pilot studies, specialist technical advice, and programs and projects initiated by the Sport and Recreation Ministers' Council and the Standing Committee on Recreation and Sport, with costs shared by the Commonwealth, states, and territories. The abolition of the old account will occur once its balance is fully transferred to the new account, ensuring a smooth transition and maintaining the integrity of financial management practices.

Scope and Application

The Determination 2006/19 under the Financial Management and Accountability Act 1997 concerns the variation and abolition of the Standing Committee on Recreation and Sport Consultant Account, a Special Account established under the Constitution of Australia. This determination applies specifically to the financial management and accountability practices within the Commonwealth Government, affecting the Department of Communications, Information Technology and the Arts, which was consulted and agrees with the form of this instrument. The determination is structured to address operational limitations in the existing account's framework, facilitating a transition to a new Sport and Recreation Special Account, which will continue the activities of the former while incorporating necessary changes. The Financial Minister has the authority to establish or abolish Special Accounts, and while establishing determinations must be tabled in Parliament, there is no such requirement for abolition determinations. The new Sport and Recreation Special Account is designed to streamline the financial management of expenditures related to pilot studies, specialist technical advice, and programs initiated by the Sport and Recreation Ministers' Council and its subordinate body, with costs to be met jointly by the Commonwealth, States, and Territories.

Key Provisions

The Financial Management and Accountability Act 1997 (FMA Act) is governed by a series of determinations, one of which is Determination 2006/19. This determination is concerned with the Standing Committee on Recreation and Sport Consultant Account, specifically its variation and subsequent abolition (section 20). The aim is to establish a new Sport and Recreation Special Account (section 20). This new account is intended to meet the necessary changes that are not feasible to implement through a variation of the existing account due to the structure of the initial determination (section 20). The obligations imposed by this determination include the establishment of the new Sport and Recreation Special Account. This new account will serve the same purpose as the original, which is to fund pilot studies, specialist technical advice, and programs and projects initiated by the Sport and Recreation Ministers’ Council and the Standing Committee on Recreation and Sport, with costs shared between the Commonwealth, States, and Territories (section 20). The determination also mandates that the balance of the existing account be credited to the new one, effectively transferring all funds and obligations (section 20). Failure to comply with the provisions of this determination could result in legal and financial consequences. The FMA Act does not specify explicit offences, penalties, or civil/criminal consequences for breaching this particular determination. However, non-compliance with the Financial Management and Accountability Act 1997 can generally lead to significant penalties. These may include fines, imprisonment, or other legal actions, depending on the severity of the breach and the discretion of the court. The specific penalties are not detailed in this determination but would be governed by the overarching legislation and any relevant regulations. The determination also outlines the process for tabling the establishment or variation of Special Accounts in Parliament. According to section 22 of the FMA Act, the Finance Minister must table a copy of the establishing or varying determination in each House of Parliament. Either House has the power to disallow the determination within five sitting days of its 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 (section 22). This process ensures transparency and parliamentary oversight of the financial management practices of the government.