Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to ensure that the Commonwealth’s finances are managed in a manner that promotes economy, efficiency, effectiveness, and economy. The Act provides the legal framework for the financial management and accountability of the Commonwealth. Determination 2006/44, made by the Minister for Finance and Administration under section 20 of the FMA Act, aims to vary and subsequently abolish the National Youth Affairs Research Scheme Account. The purpose of this determination is to allow the transfer of funds from the National Youth Affairs Research Scheme Account to a new Special Account, which was necessitated by the structural limitations of the original account. Special Accounts are established to allow specific funds from the Consolidated Revenue Fund to be spent on designated purposes, subject to parliamentary appropriation and oversight. The National Youth Affairs Research Scheme Account, originally established to fund the National Youth Affairs Scheme, was facing constraints due to its initial structure, which did not allow for necessary modifications. Therefore, a new Special Account was created to continue the activities of the original account while incorporating the required changes. This determination ensures the seamless continuation of the scheme’s activities by transferring the existing balance from the old account to the new one and abolishing the former once the balance is exhausted. The affected department, the Department of Families, Community Services and Indigenous Affairs, was consulted and agrees with the form of this instrument, which is intended for internal government purposes only.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2006/44 concerns the variation and subsequent abolition of the National Youth Affairs Research Scheme Account. This determination applies to the Commonwealth Government's financial operations and management, specifically within the framework established by the Financial Management and Accountability Act 1997. It addresses the administrative adjustments necessary to the National Youth Affairs Research Scheme Account, a Special Account within the Consolidated Revenue Fund. The determination applies to the Finance Minister, who has the authority to make such changes, and it is limited to the Commonwealth of Australia. The changes outlined in this determination are not subject to disallowance by either House of Parliament if not disallowed within five sitting days of tabling. However, the abolition of the National Youth Affairs Research Scheme Account does not require tabling. The determination facilitates the transfer of the account's remaining balance to a newly established account, ensuring continuity in the funding and management of activities related to the National Youth Affairs Research Scheme.

Key Provisions

Determination 2006/44 under the Financial Management and Accountability Act 1997 (FMA Act) primarily concerns the variation and subsequent abolition of the National Youth Affairs Research Scheme Account. The main operative sections of this determination include the establishment of a new Special Account, the National Youth Affairs Research Scheme Special Account (new Account), which is intended to replace the existing National Youth Affairs Research Scheme Account. This new Account will allow for the continuation of the National Youth Affairs Scheme's activities, incorporating necessary changes that are not feasible through a variation of the initial determination (section 3). The existing Account's balance will be credited to the new Account until the former reaches zero, at which point it will be abolished (section 3(1)). The obligations imposed by this determination are primarily on the Department of Families, Community Services and Indigenous Affairs, the agency responsible for the National Youth Affairs Research Scheme. This department must ensure that the necessary changes are implemented smoothly by transferring the balance from the existing Account to the new one. The Finance Minister, who is responsible for the establishment and abolition of Special Accounts, must also table a copy of the determination in each House of Parliament if it involves varying a Special Account, although this is not required for abolition (section 22). The department must have consulted with relevant stakeholders, and in this case, it was deemed unnecessary to consult further beyond the department due to the internal nature of the changes (sections 17 and 18 of the Legislative Instruments Act 2003). There are no explicit offences, penalties, or consequences for breach stated within the determination itself. However, non-compliance with the requirements of the FMA Act or the Legislative Instruments Act 2003 could potentially lead to legal repercussions. For instance, failing to properly table a determination that varies a Special Account could be subject to disallowance by either House of Parliament 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. Additionally, the Finance Minister's failure to abide by the legislative requirements for the management and accountability of funds could result in financial mismanagement, which might attract civil or criminal penalties depending on the severity and intent of the breach.