Financial Management and Accountability Determination 2009/16 - Abolition of Special Accounts 2009

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to establish a framework for the management and accountability of Commonwealth finances. The Act, passed by the Parliament of Australia, aims to ensure that financial resources are used efficiently, effectively, and in accordance with the law. One of its mechanisms is the establishment of Special Accounts, which allow for the segregation of funds within the Consolidated Revenue Fund for specific purposes, subject to parliamentary appropriation. Determination 2009/16, made under section 20 of the FMA Act, seeks to address the redundancy and underutilisation of certain Special Accounts by abolishing ten such accounts administered by various Commonwealth entities. These accounts, including those for the Administrative Appeals Tribunal, National Native Title Tribunal, Department of Agriculture, Fisheries and Forestry, Department of Finance and Deregulation, and Department of Foreign Affairs and Trade, have either not been used or their functions have been subsumed under other accounts. The determination, which does not require parliamentary disallowance, will result in the abolition of these accounts as their balances reach zero.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2009/16, issued under the authority of the Minister for Finance and Deregulation, serves to abolish ten Special Accounts within the Australian government's financial management framework. These accounts, previously established by the Administrative Appeals Tribunal, the National Native Title Tribunal, the Department of Agriculture, Fisheries and Forestry, the Department of Finance and Deregulation, and the Department of Foreign Affairs and Trade, have been deemed redundant due to non-utilisation and changes in operational requirements. The Special Accounts include the Services for other Governments and Non-agency Bodies Accounts managed by the AAT and NNTT, the Meat and Inspection Service Account managed by DAFF, the Telstra Sale Special Account managed by Finance, and six accounts managed by DFAT related to cultural and educational foundations with various countries. The abolition of these accounts means that the funds held in them will be returned to the Consolidated Revenue Fund once their balances reach zero. This determination is not subject to parliamentary disallowance, ensuring its swift implementation. The scope of this determination is confined to the specified Special Accounts and their respective administering departments, with no direct impact on other entities or industries outside the mentioned government departments. It applies nationally within the Commonwealth of Australia and aligns with the Financial Management and Accountability Act 1997, which governs the financial operations of the Commonwealth government. There are no stated exclusions or exemptions in the determination, and it is not subject to disallowance by either House of Parliament. The determination is a direct application of the FMA Act, reflecting a streamlined approach to financial management by phasing out redundant accounts.

Key Provisions

The primary operative sections of Determination 2009/16 (F2009L02105) under the Financial Management and Accountability Act 1997 (FMA Act) are those that establish and subsequently abolish ten Special Accounts previously utilised by various government entities. These accounts, which include the Services for Other Governments and Non-agency Bodies Accounts managed by the Administrative Appeals Tribunal (AAT) and the National Native Title Tribunal (NNTT), the Meat and Inspection Service Account managed by the Department of Agriculture, Fisheries and Forestry (DAFF), and the Telstra Sale Special Account managed by the Department of Finance and Deregulation (Finance), are to be abolished as they are deemed redundant. Additionally, six Special Accounts managed by the Department of Foreign Affairs and Trade (DFAT) are also to be abolished. This determination effectively eliminates these accounts from future use, with some accounts being phased out as their balances reach zero. Under this determination, specific obligations and requirements are placed on the affected government departments and agencies. These entities must cease any operations or transactions involving the abolished Special Accounts and ensure that all financial records accurately reflect the cessation of these accounts. Furthermore, the Finance Minister, who has the authority to establish or abolish Special Accounts under section 20 of the FMA Act, must table a copy of the determination in each House of Parliament. The disallowance provisions under section 22 of the FMA Act do not apply to the abolition of these accounts, as per Regulation 10 of the Legislative Instruments Regulations 2004. The affected agencies were consulted and provided with drafts of the instrument, all of whom agree with the form and content of the determination. In terms of penalties and consequences, the determination itself does not outline specific offences or penalties for breaches related to the abolition of these Special Accounts. However, any misuse of funds or improper financial practices involving these accounts prior to their abolition could potentially result in legal repercussions under other provisions of the FMA Act or related legislation. Non-compliance with financial management and accountability requirements could lead to disciplinary actions, financial penalties, or other legal consequences as determined by relevant authorities. The determination ensures that the abolished accounts are no longer used, thereby mitigating any potential for future breaches related to these specific accounts.