Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to ensure effective financial management and accountability within the Commonwealth. The Act provides a framework for the management of Commonwealth finances and includes provisions for the establishment and management of Special Accounts within the Consolidated Revenue Fund. Determination 2006/39, issued under section 20 of the FMA Act, was introduced by the Minister for Finance and Administration to address the need to vary and subsequently abolish the National Science and Technology Centre Account. The purpose of this determination is to facilitate the transfer of the account's balance to a new Special Account, the Science and Technology Donations/Sponsorship Special Account, which better aligns with the evolving needs and purposes of the account. The policy objective is to ensure clarity and effectiveness in the management of funds dedicated to science and technology, reflecting changes required by the structure of the original determination. This determination was made in consultation with the Department of Education, Science and Training, which agreed with the form and content of the instrument, and no further consultation was deemed necessary as the instrument pertains to internal government machinery.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) applies to the establishment, variation, and abolition of Special Accounts, which are used to allocate funds from the Consolidated Revenue Fund (CRF) for specific purposes. Determination 2006/39, issued under the FMA Act, provides for the variation and eventual abolition of the National Science and Technology Centre Account, replacing it with a new Science and Technology Donations/Sponsorship Special Account. This determination is applicable to the Finance Minister and the Department of Education, Science and Training, which is the affected agency. The changes are made due to the constraints in modifying the initial determination established in 1997. The new Account aims to maintain the activities of the National Science and Technology Centre Account while incorporating necessary changes and ensuring clarity in the determination. The variation and abolition of the National Science and Technology Centre Account, and the establishment of the new Account, do not extend beyond the Commonwealth's jurisdiction.

Key Provisions

The main operative sections of this determination (Determination 2006/39) involve varying and abolishing the National Science and Technology Centre Account, and establishing a new Special Account, the Science and Technology Donations/Sponsorship Special Account. Under section 20 of the Financial Management and Accountability Act 1997 (FMA Act), the Finance Minister is empowered to establish or vary Special Accounts by making a determination. This determination (Determination 2006/39) allows the balance of the National Science and Technology Centre Account to be credited to the new Special Account, which is established by Determination 2006/40. Clause 4 of Determination 2006/39 provides for the abolition of the National Science and Technology Centre Account once its balance reaches zero. The obligations imposed on the parties governed by this Act include the requirement for the Finance Minister to table a copy of the establishing or varying determination in each House of Parliament, as mandated by section 22 of the FMA Act. This requirement ensures transparency and parliamentary oversight over the establishment and variation of Special Accounts. Additionally, the Department of Education, Science and Training, as the agency affected by this instrument, was provided with drafts of the instrument before it was finalised, and agrees with the form of the instrument. The determination also includes provisions for the abolition of the National Science and Technology Centre Account once its balance reaches zero. There are no specific offences, penalties, or consequences mentioned in the text for breaches of this determination. However, the disallowance provisions under section 22 of the FMA Act allow either House of Parliament to 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. The disallowance process provides a mechanism for parliamentary scrutiny and control over the establishment and variation of Special Accounts.