Overview

The Financial Management and Accountability Act 1997 was enacted to enhance the accountability and transparency of the Commonwealth's financial management. It provides a framework for the management of public money and requires that all Commonwealth funds be deposited into the Consolidated Revenue Fund. To facilitate specific spending in line with particular purposes, the Act allows for the establishment of Special Accounts through determinations by the Minister for Finance and Administration. Determination 2006/59, issued under the authority of the Minister for Finance and Administration, establishes the Australian Archives Projects and Sponsored Activities Special Account to support projects related to the promotion of reliable recordkeeping and the preservation, interpretation, and accessibility of the national archival collection. The determination outlines the types of credits and debits permissible for this account, thereby ensuring that the account operates within the bounds set by the Act. The National Archives of Australia, the agency affected by this instrument, has been consulted and agrees with the form of the instrument.

Scope and Application

The Determination 2006/59, issued under the Financial Management and Accountability Act 1997, establishes a Special Account named the Australian Archives Projects and Sponsored Activities Special Account. This Special Account is designed to facilitate the allocation and management of funds specifically earmarked for projects that promote reliable recordkeeping and enhance the accessibility, interpretation, development, and preservation of the national archival collection. The Special Account operates under the auspices of the Commonwealth, and its establishment is contingent upon appropriation by Parliament, thereby ensuring that all expenditures are aligned with legislative authorisation. The new Special Account replaces an existing one, which was established by a delegate of the Minister for Finance and Administration on 7 April 1998. The creation of this new account is necessitated by the structural limitations of the previous determination, which restricted the incorporation of necessary amendments. The Minister for Finance and Administration must table this determination in each House of Parliament, where it can be disallowed within a specific timeframe. If not disallowed, the determination becomes effective on the day following the last possible day for disallowance. The Australian Archives Projects and Sponsored Activities Special Account is intended to maintain the scope of activities previously covered by the old account while enhancing clarity and efficiency in its operations. The purposes of the Special Account have been refined to better reflect its activities, and it now includes provisions for debiting incidental activities, returning excess amounts to the Budget, repaying amounts where permitted by other laws, and incorporating notes for informational purposes. These changes aim to streamline the account's operations and reduce ambiguity regarding its scope and permissible transactions. The National Archives of Australia, the agency primarily affected by this determination, has reviewed and agreed with the form and content of the instrument, deeming further consultation unnecessary due to its internal machinery of government nature.

Key Provisions

Determination 2006/59 under the Financial Management and Accountability Act 1997 establishes the Australian Archives Projects and Sponsored Activities Special Account, which allows for the management of specific funds related to national archival projects and sponsored activities. This account is supported by an appropriation under section 20 of the FMA Act and is intended to facilitate the spending of funds from the Consolidated Revenue Fund for the purpose of promoting reliable recordkeeping and preserving the national archival collection (subsection 20(1)). The account is designed to replace the existing Australian Archives Projects and Sponsored Activities Account, which was established on 7 April 1998 by a delegate of the Minister for Finance and Administration. The new account incorporates necessary changes that were not feasible to implement through a variation of the old account due to structural limitations in its establishing determination. The Australian Archives Projects and Sponsored Activities Special Account has specific purposes, including funding projects related to the promotion of reliable recordkeeping and the preservation, development, interpretation, and accessibility of the national archival collection. It also allows for the return of residual balances to the original payee. Additionally, the account can be debited for incidental activities such as administration costs, and any excess amounts can be returned to the Budget. The account's establishment is meant to enhance the clarity of the Special Account determinations and remove any ambiguity regarding the scope of the account's purposes. The account's establishment also includes provisions for the repayment of amounts when permitted by another Act or law. The Act imposes several obligations on the parties and entities governed by it. The Minister for Finance and Administration is required to table a copy of the determination relating to the Special Account in each House of Parliament. Either House may disallow the 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 National Archives of Australia, being the affected agency, was provided with drafts of the instrument and agrees with the form of the instrument. The Act also provides for the abolition of Special Accounts by a determination of the Finance Minister, although there is no requirement to table such a determination. For breach of any provisions of the Act, the legislation outlines various offences, penalties, or civil/criminal consequences. However, the explanatory statement does not specify the exact nature of these consequences. In general, breaches of the Financial Management and Accountability Act 1997 can result in civil or criminal penalties, depending on the severity of the breach. The maximum penalties for breaches of the Act can vary widely, depending on the specific provision that has been breached. For example, penalties for breaches of the Act can include fines, imprisonment, or both, depending on the circumstances of the breach. However, the exact penalties for breach of the Act are not specified in the explanatory statement provided.