EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Deregulation

Financial Management and Accountability Act 1997

Determination 2008/09 to vary the Business Services Special Account

Purposes of Determination 2008/09

The attached Determination is made under subsection 20 (2) of the Financial Management and Accountability Act 1997 (FMA Act) to vary the Business Services Special Account.  It also specifies the nature of amounts that may be credited to, and the purposes for which amounts may be debited from, the Business Services Special Account.

Special Accounts Generally

In accordance with the Constitution, all revenues or moneys raised or received by the Government of the Commonwealth form one Consolidated Revenue Fund (CRF) and may not be spent unless under an appropriation by the Parliament for the purposes of the Commonwealth.  A Special Account is established by a determination that sets out the amounts that may be credited and the purposes for which it may be debited.  Special Accounts established by determination are supported by an appropriation under section 20 of the FMA Act.  In effect, Special Accounts allow amounts from the CRF to be spent on a purpose specified in the determination.

Determinations that establish Special Accounts, or vary determinations that establish Special Accounts, are subject to section 22 of the FMA Act.  Section 22 of the FMA Act requires the Finance Minister to table a copy of the establishing or varying determination in each House of Parliament. Either House may disallow a 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.

Regulation 10 of the Legislative Instruments Regulations 2004 preserves the disallowance provisions under section 22 of the FMA Act by exempting Special Account Determinations from the standard disallowance provisions of the Legislative Instruments Act 2003. The Determination may prescribe a later date upon which the Special Account can be relied upon.

Special Accounts can be abolished by a determination of the Finance Minister.  However, there is no requirement to table such a determination.

Purpose of the Business Services Special Account

This determination is required to vary the Business Services Special Account established by Section 20 (1) of the FMA Act. The purpose of the variation is to remove fleet management as an activity operating through that account and transfer it to a new special account to be established to cover all coordinated procurement contracting activities of the Australian Government.  Coordinated procurement contracting will cover all the procurement processes associated with establishing whole of government standing offers and the ongoing contract management of those arrangements for all departments and agencies subject to the FMA Act.

The Business Services Special Account will continue to cover a number of functions associated with the former Department of Administrative Services (DAS).  These functions relate to the sentencing and disposal of DAS records and the management and settlement of any personal injury and other legal claims which may arise from any activity associated with the former DAS.   

Changes required

The changes required to the old Account are set out below:

• amending the purpose clause to remove the previous sub-clause (a) relating to the management of the whole of government contract for providing fleet management and leasing services to government departments and agencies; and
• the purpose of the Special Account has been varied to include a sub-clause which will allow the crediting of  amounts relating to fleet management to the Coordinated Procurement Contracting Special Account.  

The existing balances relating to the operations of fleet management are to be debited from the Business Services Special Account and credited to the newly established Coordinated Procurement Contracting Special Account.

The Coordinated Procurement Contracting Special Account will be established by a separate determination, Financial Management and Accountability Determination 2008/08 Coordinated Procurement Contracting Special Account Establishment 2008.

Consultation

The Department of Finance and Deregulation is the agency affected by this instrument.  As the instrument is for internal machinery of government purposes only, no consultation was considered necessary with other persons (in accordance with the provisions of section 18 of the Legislative Instruments Act 2003).

Estimates of transactions on the Business Services Special Account

*  Estimates cannot be established at this time.