Financial Management and Accountability Determination 2009/01 – Young Endeavour Youth Program Operating Fund Account Variation and Abolition 2009

Administered by Department of Finance

Legislation au F2009L00431 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Deregulation

Financial Management and Accountability Act 1997

Determination 2009/01 to vary and abolish a Special Account

Purposes of Determination 2009/01

The attached instrument makes a determination under section 20 of the Financial Management and Accountability Act 1997 (FMA Act) to vary and subsequently abolish the Young Endeavour Youth Program Operating Fund 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 may be 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 Special Account.

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 subsections 57(2) and 57(5) of the Legislative Instruments Act 2003.

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

Operation of the Determination 2009/01

Purpose of the Young Endeavour Youth Program Operating Fund Account

A new Special Account, entitled the Young Endeavour Youth Program Special Account (‘the new Account’), is required in order to give effect to changes that are required to the Young Endeavour Youth Program Operating Fund Account, but which are not practical to make by variation to the Young Endeavour Youth Program Operating Fund Account due to the way in which the Initial Determination was structured.


The current purposes of the Young Endeavour Youth Program Operating Fund Account are:

For expenditure in relation to:

(a)   the payment to suppliers or a notional payment to the Official Public Account of moneys due in connection with the operation and activities of the STS Young Endeavour;

(b)   the payment of refunds to persons entitled to such refunds in connection with the operation and activities of the STS Young Endeavour; and

(c)   the payment of moneys as specified by the Young Endeavour Youth Program Board of Management, for purposes relating to the operation of the Young Endeavour, or by the Commonwealth.

Change required

A clause has been inserted to allow amounts to be debited from the Young Endeavour Youth Program Operating Fund Account and credited to the new Account.

Limitations in the structure of the Initial Determination

It is not practical to vary the Initial Determination signed by the delegate of the Minister for Finance and Administration on 31 December 1997 (establishing a Young Endeavour Youth Programme Reserve as a component of the Reserved Money Fund).  This is because the format of the determination constrains the amount of information that can be included.  Accordingly, a new Account is being established (Determination 2009/02) to provide for the continuation of the activities of the old Account, the incorporation of the necessary changes, and to ensure that the determination is as clear and informative as possible.

Effect of this determination

The Young Endeavour Youth Program Operating Fund Account is being varied by this determination to enable its balance to be credited to the new Account.  Once the balance of the Young Endeavour Youth Program Operating Fund Account reaches zero, clause 4 of the determination will abolish the Young Endeavour Youth Program Operating Fund Account.

Consultation

The Department of Defence is the agency affected by this instrument.  The agency was provided with drafts of the instrument and agrees with the form of the instrument. As the instrument is for internal machinery of government purposes only, no consultation was considered necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).


Estimates of transactions on the Young Endeavour Youth Program Operating Fund Account

 

Opening Balance

2008-09

$’000

Credits

 

2008-09

$’000

Debits

 

2008-09 (1)

$’000

Closing Balance

2008-09

$’000

Young Endeavour Youth Program Operating Fund Account

866

196

1062

0

 

1. Includes balance debited from the Young Endeavour Youth Program Operating Fund Account and credited to the new Account.

 

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the financial management and accountability of the Commonwealth. One of the purposes of this Act is to regulate the spending of Commonwealth funds by requiring that all moneys received by the Government form one Consolidated Revenue Fund (CRF) and may only be spent under an appropriation by the Parliament. To facilitate this, Special Accounts can be established to allow for the spending of funds for specific purposes, subject to certain conditions. Determination 2009/01, issued under section 20 of the FMA Act, was made by the Minister for Finance and Deregulation to vary and subsequently abolish the Young Endeavour Youth Program Operating Fund Account, and establish a new Young Endeavour Youth Program Special Account to address certain operational changes that were not feasible through a variation of the existing account due to structural limitations. This determination was tabled in Parliament and, not being disallowed, came into effect on the calendar day after the last day for disallowance. The Department of Defence, the agency affected by this instrument, was consulted and agrees with the form of the instrument.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2009/01 pertains to the variation and eventual abolition of the Young Endeavour Youth Program Operating Fund Account. This determination applies to the Commonwealth of Australia, specifically within the framework of the Financial Management and Accountability Act 1997, and it directly affects the Young Endeavour Youth Program Operating Fund Account and subsequently the newly established Young Endeavour Youth Program Special Account. The affected entity is the Department of Defence, which is responsible for the activities and operations of the STS Young Endeavour. The changes outlined in the determination are intended to enhance the clarity and practicality of the fund's management by establishing a new account that can better accommodate the required modifications. Once the new account is fully operational, the old account will be abolished once its balance reaches zero. This determination does not require disallowance by Parliament, although any establishing or varying determinations for Special Accounts must be tabled in both Houses of Parliament, with the option for disallowance within five sitting days of tabling.

Key Provisions

The main operative sections of the Determination 2009/01 under the Financial Management and Accountability Act 1997 (FMA Act) establish a new Special Account, the Young Endeavour Youth Program Special Account, to replace the existing Young Endeavour Youth Program Operating Fund Account. This new account is intended to continue the activities of the old account with necessary changes, which could not be incorporated due to structural constraints in the initial determination (section 20). The existing account will be abolished once its balance is zero (section 22). The determination also facilitates the transfer of the existing account's balance to the new account, ensuring a seamless transition (section 22). The obligations imposed by this Act require the Finance Minister to establish or vary a Special Account through a determination, subject to parliamentary disallowance (section 22). The Minister must table a copy of the determination in both Houses of Parliament, allowing either House to disallow it within five sitting days of tabling. If not disallowed, the determination takes effect on the calendar day following the last day for disallowance. The Act also mandates that the Department of Defence, as the affected agency, be consulted on the drafts of the instrument, and in this case, the department agrees with the form of the instrument (section 22). The Act does not explicitly detail specific offences or penalties for breaches in this context. However, any failure to comply with the provisions of the FMA Act, including those related to the management and accountability of special accounts, could result in civil or criminal liability under the broader provisions of the Act. The maximum penalties for breaches of the FMA Act can vary, but they typically include fines and imprisonment terms as prescribed under the relevant sections of the Act.

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Determination
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.