Overview

The Financial Management and Accountability Act 1997 (FMA Act) is a foundational piece of legislation that governs the financial management and accountability of the Commonwealth of Australia. Enacted in 1997, the FMA Act was designed to address the need for a robust framework to ensure the responsible and transparent management of public funds. One of the key mechanisms introduced by the Act is the establishment of Special Accounts, which allow for the allocation of specific funds for designated purposes under parliamentary appropriation. The FMA Act aims to provide clarity and oversight in the financial operations of the Commonwealth, ensuring that funds are managed effectively and in accordance with legislative and policy directives. Determination 2008/07, issued under the authority of the Minister for Finance and Deregulation, exemplifies the Act's function by varying and subsequently abolishing the Other Trust Moneys – Bureau of Meteorology Special Account. This change was made to streamline financial operations and better align with the administrative restructuring within the Bureau of Meteorology, particularly following the transfer of the Ionospheric Prediction Service. The policy objective behind this determination was to eliminate redundancy and enhance the efficiency of financial management within the Bureau of Meteorology.

Scope and Application

The Determination 2008/07 made under section 20 of the Financial Management and Accountability Act 1997 modifies and ultimately abolishes the Other Trust Moneys – Bureau of Meteorology Special Account. This Act applies to the Bureau of Meteorology, which is the entity responsible for managing the Special Account. The determination is made in accordance with the requirements of the Constitution and the FMA Act, ensuring that all revenues received by the Commonwealth Government form one Consolidated Revenue Fund, which cannot be spent without an appropriation by Parliament. The purpose of the Special Account, which enabled the Bureau of Meteorology to temporarily hold funds on behalf of other persons or entities, is no longer necessary due to changes in administrative arrangements. As a result, the crediting clauses of the OTM – BoM Special Account have been omitted and the purpose clauses have been amended to allow for amounts to be credited to the Services for Other Entities and Trust Moneys – Bureau of Meteorology Special Account. The determination is subject to disallowance by either House of Parliament, but no such disallowance has occurred, and the determination is effective from the day after the last day on which it could have been disallowed. The Legislative Instruments Regulations 2004 exempt Special Account Determinations from certain subsections of the Legislative Instruments Act 2003, preserving the disallowance provisions.

Key Provisions

Determination 2008/07 under the Financial Management and Accountability Act 1997 (FMA Act) primarily involves the variation and subsequent abolition of the Other Trust Moneys – Bureau of Meteorology Special Account (OTM – BoM Special Account). This Determination is made under section 20 of the FMA Act, which empowers the Finance Minister to establish or vary Special Accounts. The OTM – BoM Special Account was initially set up to allow the Bureau of Meteorology (BoM) to temporarily hold funds on behalf of other persons or entities, not the Commonwealth. However, due to the transfer of the Ionospheric Prediction Service (IPS) to BoM, which involves managing funds on behalf of other governments, it is deemed appropriate to adjust and eventually abolish this Special Account. This is because a new Special Operating Expenditure Trust Money (SOETM) for BoM will cover the purposes of the OTM, rendering it redundant. The Determination mandates several changes to the OTM – BoM Special Account. Firstly, the crediting clauses, which specify the amounts that can be credited to the Special Account, have been omitted. Secondly, the purpose clauses have been amended to allow for the crediting of amounts to the Services for Other Entities and Trust Moneys – Bureau of Meteorology Special Account. These changes are intended to streamline the financial management processes within BoM and ensure that all relevant transactions are appropriately accounted for under the new SOETM framework. The obligations imposed by Determination 2008/07 on BoM and other relevant entities include the cessation of crediting funds to the OTM – BoM Special Account. This change is effective immediately, and BoM must ensure that no further amounts are credited to this Special Account. Once the balance of the OTM – BoM Special Account reaches zero, clause 4 of the Determination will formally abolish the account. The BoM, as the affected agency, has been provided with drafts of the instrument and agrees with its form. Since the instrument pertains to internal government machinery and does not affect the public, no further consultation was deemed necessary. In terms of potential consequences, the FMA Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance with the Determination. However, any breach of the provisions set forth in the FMA Act or its regulations could potentially lead to administrative or legal actions, depending on the severity and impact of the non-compliance. The disallowance process, as stipulated in section 22 of the FMA Act, allows either House of Parliament to disallow a Determination within five sitting days of it being tabled, ensuring that legislative oversight is maintained. If not disallowed, the Determination comes into effect on the calendar day after the last day on which it could have been disallowed. This procedural safeguard helps to maintain the integrity and accountability of financial management within the Commonwealth.