Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted by the Parliament of Australia to ensure proper financial management and accountability within the Commonwealth. This legislation provides the framework for the handling of Commonwealth revenues and expenditures, emphasising the need for appropriations by Parliament and establishing mechanisms for financial oversight and reporting. Determination 2008/05 under the FMA Act was introduced to address the specific financial management needs of the Department of Resources, Energy and Tourism by establishing a Special Account. This Special Account, titled the Services for Other Entities and Trust Moneys – Department of Resources, Energy and Tourism Special Account, facilitates the Department's ability to manage funds on behalf of other entities and trust monies. The policy objective of this Determination is to provide a clear structure for the crediting and debiting of funds within this Special Account, ensuring that all transactions comply with the FMA Act and are subject to parliamentary scrutiny and disallowance provisions. The Department of Resources, Energy and Tourism, which was established on 3 December 2007, has indicated the necessity for such an account to manage its financial obligations effectively.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2008/05, issued under the authority of the Minister for Finance and Deregulation, establishes a Special Account titled "Services for Other Entities and Trust Moneys – Department of Resources, Energy and Tourism Special Account". This Act applies specifically to the Department of Resources, Energy and Tourism, which was created on 3 December 2007, and outlines the financial operations of the department, including the crediting and debiting of funds within this Special Account. The Special Account serves to facilitate the department's ability to hold and expend moneys on behalf of entities other than the Commonwealth, typically accommodating small amounts of miscellaneous moneys received in the course of providing services to foreign or state governments, among others. The account is intended to be used for services rendered by the department to entities other than Commonwealth agencies, thereby allowing the department to manage its financial transactions more efficiently. The establishment of this Special Account is subject to parliamentary oversight, requiring the Finance Minister to table the Determination in each House of Parliament, where it can be disallowed within five sitting days. The operation of this account is governed by the Financial Management and Accountability Act 1997, which mandates that all expenditures must be supported by a specific appropriation and adhere to the prescribed crediting and debiting purposes as outlined in the Determination.

Key Provisions

The main operative sections of the Determination 2008/05 under the Financial Management and Accountability Act 1997 (FMA Act) establish a Special Account titled "Services for Other Entities and Trust Moneys – Department of Resources, Energy and Tourism Special Account" (paragraphs 1 to 4). This Special Account is intended to enable the Department of Resources, Energy and Tourism to hold and expend funds on behalf of entities other than the Commonwealth, such as small amounts of miscellaneous moneys and payments related to services performed for other legal entities, often foreign or state governments (paragraph 5). The Special Account is supported by an appropriation under section 20 of the FMA Act, allowing specified amounts to be credited to and debited from the account for specified purposes (paragraphs 5(a), 5(b), and 5(c)). The obligations imposed by this Determination on the Department of Resources, Energy and Tourism include the management of the Special Account in accordance with the specified purposes and the requirement to ensure that all credits and debits comply with the FMA Act and any other relevant legislation. The Department must maintain accurate records of all transactions involving the Special Account and ensure that any credits and debits are authorised and within the scope of the Determination (paragraphs 5 and 6). Furthermore, the Department is required to report on the use of the Special Account as necessary, including providing details to the Finance Minister for tabling in Parliament (section 22 of the FMA Act). Any breaches of the provisions outlined in the Determination may result in civil or criminal consequences, depending on the nature and severity of the breach. Under the FMA Act, offences related to the misuse of funds or unauthorised expenditures may be prosecuted, and penalties can include fines and imprisonment. The maximum penalties for breaches under the FMA Act vary based on the offence but can be significant, reflecting the seriousness of mismanaging public funds. Additionally, individuals or entities found to have breached the terms of the Determination may be subject to disciplinary action or other administrative penalties as prescribed by relevant legislation.