Overview

The Financial Management and Accountability Act 1997, enacted by the Australian Parliament, was introduced to ensure effective and accountable financial management across Commonwealth entities. To address the specific financial management needs of the Office of the Australian Accounting Standards Board (OAASB), the Financial Management and Accountability Act 1997 Determination 2008/19 was made under subsection 20(1) of the FMA Act. This Determination establishes a Special Account named the Office of the Australian Accounting Standards Board Services for Other Entities and Trust Moneys Special Account (OAASB SOETM Special Account). The primary objective of this Determination is to allow the OAASB to manage and expend funds on behalf of entities other than the Commonwealth, ensuring that these transactions are properly accounted for and regulated. The OAASB, as a prescribed Agency under the FMA Act, requires a mechanism to handle miscellaneous small amounts received from various sources, such as services provided to non-prescribed entities or payments related to workers’ compensation. This Special Account provides a structured way to manage these funds, ensuring compliance with financial management standards and legislative requirements.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) Determination 2008/19 establishes a Special Account named the Office of the Australian Accounting Standards Board Services for Other Entities and Trust Moneys Special Account (OAASB SOETM Special Account). This Determination applies to the Office of the Australian Accounting Standards Board (OAASB), which is a prescribed agency under the FMA Act. The Special Account allows the OAASB to hold and expend funds on behalf of persons or entities other than the Commonwealth, such as other governments or Comcare in relation to workers' compensation payments. The establishment of this Special Account ensures that these funds are appropriately managed and spent in accordance with the FMA Act. The primary purposes for expenditure from this Special Account include services provided to entities outside of prescribed agencies and workers' compensation payments. The Special Account is subject to parliamentary disallowance under section 22 of the FMA Act, and the Determination is exempt from certain disallowance provisions under the Legislative Instruments Act 2003. The OAASB was consulted and agrees with the form of the instrument, and no community consultation was carried out as the instrument is for machinery of government purposes only.

Key Provisions

The main operative sections of Determination 2008/19 under the Financial Management and Accountability Act 1997 (FMA Act) establish a Special Account, specifically the Office of the Australian Accounting Standards Board Services for Other Entities and Trust Moneys Special Account (OAASB SOETM Special Account) (Clause 1). This Determination outlines the nature of amounts that can be credited to the account, such as monies received in connection with services performed for non-prescribed entities and from Comcare for workers' compensation payments, and the purposes for which these amounts can be debited (Clause 5). The account is intended to manage small amounts of miscellaneous moneys that the OAASB needs to hold and expend on behalf of entities other than the Commonwealth. The obligations imposed by this Determination require the Office of the Australian Accounting Standards Board (OAASB) to adhere to the specific provisions outlined, ensuring that any crediting and debiting of the Special Account aligns with the purposes stated in the Determination. The OAASB must also ensure that any expenditure from the Special Account is consistent with the requirements set out in Clause 5. Additionally, the Determination mandates that the Finance Minister table a copy of the establishing or varying Determination in each House of Parliament, and it allows for the possibility of disallowance by either House within five sitting days (Section 22). The OAASB is also required to maintain proper accounting records and ensure transparency in the use of the Special Account funds. The Determination imposes specific offences and penalties for any breaches of the provisions outlined. While the Determination itself does not specify penalties, breaches of the FMA Act or related regulations could result in civil or criminal consequences. The maximum penalties for breaches of the FMA Act include substantial fines and imprisonment, depending on the severity of the breach. For instance, under section 33 of the FMA Act, a person who is negligent in the performance of a duty or function can face penalties of up to $21,000 or imprisonment for up to two years, or both. More severe breaches, such as those involving fraud or misconduct, can result in higher penalties, including fines of up to $210,000 and imprisonment for up to 10 years, or both. These penalties are designed to enforce compliance and ensure the integrity of financial management within the Commonwealth.