Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to establish a framework for the management and accountability of public money within the Commonwealth of Australia. This legislation addresses the need for a structured and transparent process in the allocation, expenditure, and reporting of government funds to ensure fiscal responsibility and compliance with parliamentary appropriations. The Act is administered by the Australian Parliament, which retains the authority to oversee and, where necessary, disallow any determinations related to the establishment or variation of Special Accounts. The determination to abolish the Federation Fund Account, as outlined in Determination 2006/24, was introduced to address the cessation of specific programs that were previously managed under this Special Account. With all related expenditures concluded by 30 June 2004, the Department of Education, Science and Training requested the abolition of the account. The determination, which comes into effect upon registration, is an internal measure that streamlines financial management by eliminating redundant accounts and ensuring resources are efficiently allocated in accordance with the overarching objectives of the FMA Act.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2006/24 pertains to the abolition of the Federation Fund Account administered by the Department of Education, Science and Training. This instrument applies to the specific Special Account, which is a subset of the Consolidated Revenue Fund and is governed by the provisions outlined in the Financial Management and Accountability Act. The Special Account in question was established to manage specific appropriations for particular purposes, in this case, related to the programmes managed by the Department of Education, Science and Training. The abolition of this Special Account was necessitated by the conclusion of all related expenditure as of 30 June 2004. The instrument operates to remove the account from the register of Special Accounts, effective from the date of its registration on the Federal Register of Legislative Instruments. The process of abolishing the Special Account through this determination does not require tabling in Parliament, in contrast to the establishment or variation of such accounts, which must be tabled and can be disallowed by either House within a specific timeframe.

Key Provisions

The Determination 2006/24 under the Financial Management and Accountability Act 1997 (FMA Act) serves to abolish the Federation Fund Account, which was administered by the Department of Education, Science and Training. The primary operative sections involved in this process are sections 20(3) and 22 of the FMA Act, which govern the establishment, variation, and abolition of Special Accounts. This determination specifically mandates the abolition of the Federation Fund Account, effective from the date of its registration on the Federal Register of Legislative Instruments. The obligations imposed by this Act on the relevant parties include the requirement for the Finance Minister to table a copy of any determination establishing or varying a Special Account in each House of Parliament. This is detailed in section 22 of the FMA Act. Furthermore, this determination itself must comply with the legislative process outlined in the Legislative Instruments Regulations 2004, which exempts such Special Account determinations from certain disallowance provisions under the Legislative Instruments Act 2003. The Department of Education, Science and Training, as the agency affected, has been provided with drafts of the instrument and has concurred with its form. The act also outlines the potential consequences of non-compliance. Under section 22 of the FMA Act, either House of Parliament has the right to disallow a determination within five sitting days of its tabling. If no disallowance occurs, the determination comes into effect on the calendar day after the last day on which it could have been disallowed. The abolition of the Special Account itself does not carry any explicit penalties or consequences but ensures that no further spending can occur under the account once it is abolished. The Financial Management and Accountability Act 1997 ensures that all expenditures must align with parliamentary appropriations, thereby maintaining fiscal discipline and accountability.