Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for the financial management of Commonwealth entities and to enhance accountability in the use of public funds. The Act aims to ensure that financial resources are managed in a manner that is efficient, effective, and in compliance with relevant legislation. Determination 2007/07, made under section 20 of the FMA Act by the Minister for Finance and Administration, addresses the need to vary and subsequently abolish the Protective Services Special Account. This account was previously used to manage funds related to the provision of protective services by the Australian Protective Service, which was subsumed into the Australian Federal Police following the repeal of the Australian Protective Service Act 1987. The policy objective of this determination is to align financial arrangements with the current operational structure of the Commonwealth by preventing further credits to the account and facilitating its eventual abolition once the account balance reaches zero.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) governs the financial management of the Commonwealth, ensuring that all revenues raised or received by the government form part of the Consolidated Revenue Fund (CRF) and can only be spent as appropriated by Parliament. This Act allows for the establishment of Special Accounts through determinations, which specify the purposes for crediting and debiting amounts from the CRF. The Protective Services Special Account, established to manage funds related to protective services provided by the Australian Protective Services, has been varied and is set to be abolished by Determination 2007/07, reflecting the integration of these services into the Australian Federal Police Act 1979. This determination, made under section 20 of the FMA Act, removes the crediting clauses from the Special Account and will lead to its abolition once its balance reaches zero. The changes are intended to align with the administrative restructuring of protective services, ensuring that no further funds are credited to the account and that it is eventually dissolved. The determination was subject to disallowance by either House of Parliament, although none was exercised, and it now takes effect. The Australian Federal Police, as the affected agency, has been consulted and agrees with the form of this instrument.

Key Provisions

The Financial Management and Accountability Act 1997 (FMA Act) is a pivotal piece of legislation that governs the financial management practices of the Commonwealth of Australia. Section 20 of the FMA Act provides the authority for the establishment and variation of Special Accounts, which are essentially sub-accounts of the Consolidated Revenue Fund (CRF) used to manage specific types of revenues or expenditures. Determination 2007/07, issued under section 20 of the FMA Act, is a specific instrument that varies and ultimately abolishes the Protective Services Special Account. This determination reflects changes in operational and legislative frameworks, particularly the repeal of the Australian Protective Service Act 1987 and the integration of its functions into the Australian Federal Police Act 1979. The obligations imposed by this Determination on the parties involved are primarily administrative. The determination mandates that no further amounts be credited to the Protective Services Special Account, effectively halting any new financial inflows related to the provision of protective services. The Australian Federal Police, as the agency affected by this change, must ensure compliance with these new provisions. Moreover, the Finance Minister is required to table a copy of the determination in each House of Parliament, allowing for a period during which the determination may be disallowed if either House of Parliament decides to exercise this power. The determination does not specify any direct obligations on the part of the public or other stakeholders beyond ensuring that the financial management practices comply with the updated legislative framework. Breaches of the provisions set out in the Determination 2007/07 could result in various civil or administrative consequences. While the determination itself does not explicitly outline specific penalties for non-compliance, the overarching FMA Act and associated regulations provide a framework for enforcement. For instance, unauthorized credits to the Special Account after the determination has come into effect could be considered a violation of the financial management principles outlined in the FMA Act. Such violations might lead to investigations, financial audits, or other administrative actions to ensure compliance with the Act. Although the determination does not specify maximum penalties, breaches of financial management laws generally carry significant repercussions, including potential disciplinary actions against officials and financial penalties imposed by the relevant authorities. In summary, Determination 2007/07 under section 20 of the FMA Act serves to vary and ultimately abolish the Protective Services Special Account, reflecting changes in the legislative and operational landscape of the Commonwealth. The obligations it imposes are primarily on the Finance Minister and the Australian Federal Police to ensure that the determination is properly implemented and that no further credits are made to the Special Account. While the determination does not specify penalties for non-compliance, breaches of the FMA Act could lead to significant administrative and financial consequences. The determination underscores the importance of aligning financial management practices with current legislative frameworks and operational realities.