EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Financial Management and Accountability Act 1997
Determination 2009/03 to vary the Northern Territory Flexible Funding Pool Special Account
Purposes of determination 2009/03
The attached instrument makes a determination under section 20 of the Financial Management and Accountability Act 1997 (FMA Act) to vary the Northern Territory Flexible Funding Pool Special Account (NTFFP Special Account). This instrument varies the determination entitled Financial Management and Accountability Determination 2007/21 – Northern Territory Flexible Funding Pool Special Account Establishment 2007 made on 11 September 2007 that established the NTFFP 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 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 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 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 2009/03
Reasons for varying the Special Account
The NTFFP Special Account, which is administered by the Department of Families, Community Services and Indigenous Affairs (FAHCSIA), was established to enable FAHCSIA to manage a single funding pool for resourcing employment initiatives delivered by a number of Commonwealth agencies. The Government has decided to broaden the range of activities funded through the flexible funding pool scheme. This requires an amendment to be made to the primary purpose clause of the NTFFP Special Account.
Changes required
The primary purpose clause (clause 5(a)) of the NTFFP Special Account, which allowed the Special Account to be debited to develop, promote, assist or implement employment creation initiatives in relation to the Northern Territory Emergency Response, has been replaced. The new clause 5(a) allows the Special Account to be debited to develop, promote, assist or implement initiatives that expand the employment opportunities for indigenous people in any location.
Although the determination broadens the geographic scope of the NTFFP Special Account to include employment initiatives in other regions, the name of the Special Account is not being changed at this time. This will ensure that the determination remains consistent with section 15 of the Appropriation Act (No 1) 2008-2009, which refers to the current title of the NTFFP Special Account.
Commencement of this determination
This determination (determination 2009/03), if not disallowed, will commence on 1 March 2009.
Consultation
FAHCSIA 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 NTFFP Special Account
| Opening Balance 2008-09 $’000 | Credits 2008-09 $’000 | Debits 2008-09 $’000 | Closing Balance 2008-09 $’000 |
NTFFP Special Account | 28735 | 75980 | 71797 | 32918 |
Overview
The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, serves to ensure proper financial management and accountability within the federal government. This Act addresses the need for transparency and control over the use of public funds. Specifically, the Financial Management and Accountability Determination 2009/03 amends the Northern Territory Flexible Funding Pool Special Account to expand the range of employment initiatives that can be funded, thereby broadening the scope of the program to enhance employment opportunities for Indigenous people beyond the Northern Territory. This amendment reflects the policy objective of providing greater flexibility in the allocation of funds to support employment initiatives that benefit Indigenous Australians. The determination was made by the Minister for Finance and Deregulation, in accordance with the requirements of the Financial Management and Accountability Act 1997, and it is subject to parliamentary disallowance.
Scope and Application
The Financial Management and Accountability Determination 2009/03, issued under the authority of the Minister for Finance and Deregulation, varies the Northern Territory Flexible Funding Pool Special Account (NTFFP Special Account) established by the Financial Management and Accountability Determination 2007/21. This Act applies to the NTFFP Special Account, which is administered by the Department of Families, Community Services and Indigenous Affairs (FAHCSIA), and concerns the financial management and appropriation of funds from the Consolidated Revenue Fund. The variation aims to broaden the scope of activities funded by the NTFFP Special Account to include initiatives that expand employment opportunities for indigenous people in any location, rather than just those related to the Northern Territory Emergency Response. This change in the primary purpose clause allows the Special Account to be debited for a wider range of employment initiatives. The amendment does not affect the name of the Special Account to maintain consistency with existing appropriations legislation. The determination is subject to disallowance by either House of Parliament for five sitting days after tabling, and it will commence on 1 March 2009 if not disallowed. The establishment and variation of Special Accounts are governed by section 20 and section 22 of the Financial Management and Accountability Act 1997, which require the Finance Minister to table the determining instrument in each House of Parliament. The Legislative Instruments Regulations 2004 ensure these provisions are preserved.
Key Provisions
The main operative sections of the determination 2009/03 (paragraph 2) clarify the purposes and operation of the Northern Territory Flexible Funding Pool Special Account (NTFFP Special Account). This instrument modifies the primary purpose of the NTFFP Special Account, previously designated for employment initiatives in relation to the Northern Territory Emergency Response, to now include initiatives aimed at expanding employment opportunities for Indigenous people in any location. This amendment allows the Special Account to be debited for a broader range of activities, though the name of the account remains unchanged to maintain consistency with existing appropriations (section 15 of the Appropriation Act (No 1) 2008-2009). The determination, if not disallowed, will come into effect on 1 March 2009.
The obligations imposed by this Act on the parties or entities it governs are primarily concerned with the proper use and management of the NTFFP Special Account. The Department of Families, Community Services and Indigenous Affairs (FAHCSIA) must ensure that the funds within the Special Account are used strictly for the purposes outlined in the determination. This includes developing, promoting, assisting, or implementing initiatives that expand employment opportunities for Indigenous people. FAHCSIA must also ensure that any transactions involving the Special Account comply with the Financial Management and Accountability Act 1997 (FMA Act) and the relevant appropriation acts.
Breaches of the provisions outlined in this determination can lead to various penalties and consequences. Although the determination itself does not specify particular offences or penalties, violations of the FMA Act or appropriation acts could result in both civil and criminal liabilities. Under the FMA Act, unauthorised expenditure or misuse of funds could lead to disciplinary actions against public officers, financial penalties, or even criminal charges for fraud or embezzlement. The maximum penalties for these offences can vary, but they may include substantial fines and imprisonment terms depending on the severity of the breach.