Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to ensure effective and accountable financial management across Commonwealth entities. This Act sets out the framework for the management of public money, including the establishment and operation of Special Accounts within the Consolidated Revenue Fund. Determination 2006/41, issued under section 20 of the FMA Act by the Minister for Finance and Administration, was introduced to address the need for a new Special Account to replace the existing Australian International Education Foundation International Marketing Account. This change was necessitated by structural limitations in the original determination, which made it impractical to vary the account to incorporate necessary changes. The purpose of this determination is to facilitate the transition to a new International Marketing of Education Special Account, ensuring the activities and requirements of the original account are preserved and updated appropriately. The policy objective is to maintain clear and effective financial management for the international marketing of Australian education and training services.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2006/41 addresses the variation and subsequent abolition of the Australian International Education Foundation International Marketing Account. This determination applies to the Australian International Education Foundation, which is the entity responsible for managing the account, and the activities it undertakes in the international marketing of Australian education and training services. The determination is issued under the authority of the Minister for Finance and Administration and is in line with the constitutional requirement that all Commonwealth revenues form part of the Consolidated Revenue Fund, which can only be spent through appropriations by Parliament. The determination provides for the transfer of the account balance to a new International Marketing of Education Special Account, reflecting changes necessitated by the initial account's structural limitations. The new account will support the same activities but with improved clarity and functionality. There are no exclusions or exemptions specified in this determination, which operates within the existing framework of the Financial Management and Accountability Act 1997, including the disallowance provisions and the need to table establishing or varying determinations in Parliament. Subordinate instruments may extend or restrict the application of this determination but are not mentioned in the explanatory statement.

Key Provisions

The Financial Management and Accountability Act 1997 (FMA Act) provides the legal framework for the management of public money in Australia. Under section 20 of the FMA Act, the Finance Minister can establish a Special Account by determination, which allows specific funds from the Consolidated Revenue Fund (CRF) to be spent for particular purposes. Determination 2006/41, made under section 20 of the FMA Act, varies and abolishes the Australian International Education Foundation International Marketing Account. This determination introduces a new Special Account, the International Marketing of Education Special Account, to continue the activities of the abolished account while incorporating necessary changes. The new account aims to ensure clarity and effectiveness in managing funds for the international marketing of Australian education and training services. Determination 2006/41 imposes several obligations on the parties involved. Firstly, it mandates the transfer of the balance from the Australian International Education Foundation International Marketing Account to the new International Marketing of Education Special Account. This transfer is to be completed once the old account's balance reaches zero. Secondly, the determination requires the Finance Minister to tabling a copy in each House of Parliament, subject to potential disallowance within five sitting days as per section 22 of the FMA Act. If not disallowed, the determination takes effect on the calendar day after the disallowance period. The affected agency, the Department of Education, Science and Training, must also ensure compliance with the new account's requirements and the continuation of the intended activities. Breach of the obligations set out in Determination 2006/41 could result in civil or criminal consequences. The FMA Act provides for penalties for non-compliance with financial management requirements, although specific penalties for this determination are not detailed in the explanatory statement. The Finance Minister’s failure to properly manage the transition of funds or the affected agency's non-compliance with the new account's requirements could lead to legal repercussions. The severity of these consequences would depend on the nature and extent of the breach, with potential penalties ranging from fines to more severe criminal sanctions if fraud or misconduct is involved.