Overview

The Financial Management and Accountability Act 1997 was enacted to ensure that financial management within the Australian Government is conducted in a manner that is transparent, accountable, and efficient. The Act provides a framework for the management of public money and the accountability of Commonwealth entities. One of the key mechanisms introduced by the Act is the establishment of Special Accounts, which are designed to facilitate the handling of specific types of financial transactions that require a separate accounting treatment. Determination 2009/29 under the Act was made to establish a Special Account, specifically the Services for Other Entities and Trust Moneys – Office of the Director of Public Prosecutions Special Account. This account was created to address the need for the Office of the Director of Public Prosecutions to manage and expend funds on behalf of entities other than the Commonwealth, such as other governments or in relation to workers’ compensation payments. The establishment of this Special Account is intended to ensure that these transactions are properly recorded and managed within the framework of the Financial Management and Accountability Act. The enactment of this determination was subject to parliamentary oversight, as required by section 22 of the FMA Act, which mandates that the Finance Minister must table the determination in each House of the Parliament, allowing for potential disallowance within five sitting days.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2009/29 establishes a Special Account for the Office of the Director of Public Prosecutions (ODPP), designated as the Services for Other Entities and Trust Moneys – ODPP Special Account. This account is intended to manage and allocate funds on behalf of persons or entities other than the Commonwealth, such as other governments and Comcare, relating to workers' compensation payments. The establishment of this Special Account is authorised under subsection 20(1) of the FMA Act, which allows for the creation of Special Accounts to be supported by an appropriation under the Act. The determination outlines the permissible credits to and debits from the account, including expenses for services rendered to non-Commonwealth entities and the handling of trust monies, in accordance with section 28 of the FMA Act. This Special Account operates under the jurisdiction of the Commonwealth, and its establishment and any amendments are subject to parliamentary disallowance as per section 22 of the FMA Act, although abolition of the account by the Finance Minister is exempt from such disallowance. The Office of the Director of Public Prosecutions is the primary entity affected by this determination, and consultation with the ODPP was undertaken, deeming further consultation unnecessary due to the internal nature of the instrument.

Key Provisions

The main operative sections of Determination 2009/29 under the Financial Management and Accountability Act 1997 (FMA Act) establish the Services for Other Entities and Trust Moneys – Office of the Director of Public Prosecutions Special Account (section 20(1)). This Special Account is created to allow the Office of the Director of Public Prosecutions (ODPP) to manage funds on behalf of entities other than the Commonwealth. Clause 5 of the Determination specifies that the Special Account can be debited for purposes such as holding small amounts of miscellaneous moneys received in connection with services performed for or on behalf of non-prescribed entities, such as other governments, or for workers' compensation payments received from Comcare (sections 5(a) and (b)). Additionally, the Special Account can be debited in ways permitted under section 28 of the FMA Act (section 5(c)), and to reduce the balance without a real or notional payment occurring (section 5(d)). The establishment and operation of this Special Account impose certain obligations on the ODPP. Primarily, the ODPP must ensure that the amounts credited to the Special Account are used strictly for the purposes outlined in the Determination, which include handling miscellaneous funds on behalf of other entities and ensuring compliance with the FMA Act. The ODPP is also responsible for maintaining accurate records of all transactions involving the Special Account and ensuring that these transactions are reported correctly in the financial statements. Moreover, the Determination requires the Finance Minister to table a copy of the establishing determination in each House of the Parliament, with either House having the right to disallow the determination within five sitting days of tabling (section 22 of the FMA Act). 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. The Determination does not explicitly outline specific offences, penalties, or consequences for breaches of the Special Account provisions. However, any misuse of funds or failure to comply with the FMA Act could potentially lead to civil or criminal consequences, including fines and imprisonment. The severity of these penalties would depend on the specific nature of the breach and the applicable sections of the FMA Act. The Special Account Determination itself is not subject to parliamentary disallowance if it is to be abolished, although this would require a separate determination by the Finance Minister.