Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to ensure that the financial management and accountability of Commonwealth agencies are conducted in a way that is consistent with the financial administration of the Commonwealth. This legislation was introduced to address the need for robust financial oversight and management mechanisms across various government entities. The Act was enacted by the Parliament of Australia and aims to establish a framework for the financial management of Commonwealth agencies. Determination 2010/02, issued under subsection 20(1) of the FMA Act by the Minister for Finance and Deregulation, establishes a Special Account for the Department of the Environment, Water, Heritage and the Arts, specifically titled the Services for Other Entities and Trust Moneys – Department of the Environment, Water, Heritage and the Arts Special Account. This Special Account allows the Department to hold and expend moneys on behalf of entities other than the Commonwealth, thereby ensuring that funds intended for services rendered to non-government entities and trust monies are managed appropriately and in accordance with the financial administration of the Commonwealth. The determination also specifies the nature of amounts that may be credited to and debited from this Special Account, providing a clear framework for its operation and ensuring that all transactions are conducted in a manner that complies with the FMA Act.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2010/02 establishes a Special Account for the Department of the Environment, Water, Heritage and the Arts, specifically titled the Services for Other Entities and Trust Moneys – Department of the Environment, Water, Heritage and the Arts Special Account. This Special Account is designed to facilitate the management of funds on behalf of entities other than the Commonwealth, such as other governments or non-agency bodies, by allowing the Department to hold and expend these funds. The establishment of this account ensures that all expenditures are authorised and appropriately accounted for under the Financial Management and Accountability Act 1997. The Special Account is subject to parliamentary disallowance as per section 22 of the FMA Act, providing a check and balance on the account's operations. The account is intended for small, miscellaneous transactions, including funds received for services performed for non-Commonwealth entities and workers' compensation payments. The primary purposes for debiting the account are clearly defined in Clause 5 of the Determination, ensuring transparency and adherence to financial management principles.

Key Provisions

The Determination 2010/02 under the Financial Management and Accountability Act 1997 (FMA Act) establishes a Special Account specifically for the Department of the Environment, Water, Heritage and the Arts, titled the Services for Other Entities and Trust Moneys – Department of the Environment, Water, Heritage and the Arts Special Account (section 20(1)). This Special Account allows the Department to hold and expend moneys on behalf of persons or entities other than the Commonwealth. The Special Account can be credited with amounts received in connection with services performed for other entities, such as other governments, or from Comcare in relation to workers’ compensation payments. The purposes for which the Special Account may be debited are outlined in clause 5 of the Determination. These include expenditures for services performed for other entities (subclause 5(a)), expenditures related to workers’ compensation payments (subclause 5(b)), and other expenditures as permitted under section 28 of the FMA Act (subclause 5(c)). Subclause 5(d) allows for the reduction of the balance of the Special Account without a real or notional payment occurring, to ensure these amounts are not held indefinitely. The obligations imposed on the Department of the Environment, Water, Heritage and the Arts by this Determination include ensuring that all transactions involving the Special Account adhere to the specified purposes outlined in the Determination. The Department must maintain accurate records of all credits and debits to the Special Account and ensure that all expenditures are within the scope of the purposes for which the account was established. The Department must also ensure that any balances in the Special Account are appropriately managed and not held indefinitely. The Department has been provided with drafts of the instrument and agrees with its form, indicating internal acceptance of the obligations imposed by the Determination. Failure to comply with the provisions of the Determination may result in unauthorised or improper use of the Special Account. While the Determination itself does not specify penalties for breach, the FMA Act provides a framework for potential consequences. Breaches of the FMA Act may lead to disciplinary action against public officers, as well as potential civil or criminal penalties under other relevant legislation. The specific consequences for non-compliance would depend on the nature and extent of the breach, but could include financial penalties, legal action, or disciplinary measures against the relevant officers. The Determination is subject to parliamentary disallowance, as outlined in section 22 of the FMA Act, which requires the Finance Minister to table a copy of the establishing or varying determination in each House of the 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.