EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Financial Management and Accountability Act 1997
Determination 2010/04 to establish a Special Account
Purposes of Determination 2010/04
The attached instrument makes a determination under subsection 20 (1) of the Financial Management and Accountability Act 1997 (FMA Act) to establish a Special Account for the Australian Bureau of Statistics, entitled the Services for Other Entities and Trust Moneys – Australian Bureau of Statistics Special Account. It also specifies the nature of amounts that may be credited to, and the purposes for which amounts may be debited from, the 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 the purposes 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 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.
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, such a determination is not subject to parliamentary disallowance.
Operation of Determination 2010/04
Reasons for establishing a new Special Account
Most agencies under the FMA Act administer either a Services for Other Entities and Trust Moneys (SOETM) Special Account or other Special Accounts that together encompass the purposes of a SOETM Special Account.
The SOETM Special Account will enable the Australian Bureau of Statistics to hold and expend amounts on behalf of persons or entities other than the Commonwealth.
Typically the SOETM Special Account will be used to accommodate small amounts of miscellaneous moneys. For example, the SOETM Special Account may be used to hold amounts (a) received in connection with services performed for, or on behalf of, any persons or entities that are not Agencies as prescribed under the FMA Act, such as other governments; and (b) received from Comcare in relation to employees entitled to receive workers’ compensation payments.
Clause 5 of the Determination specifies the purposes for which the Special Account can be debited.
- Subclauses 5 (a) and (b) describe the primary purposes for expenditure of amounts from the Special Account.
- Subclause 5 (c) allows the Special Account to the debited, in a manner that would otherwise be permitted by section 28 of the FMA Act. It is included to simplify accounting for these transactions.
- Subclause 5 (d) allows the balance of the Special Account to be reduced without a real or notional payment occurring. It is included to ensure that these amounts are not set aside indefinitely.
Consultation
The Australian Bureau of Statistics 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 Services for Other Entities and Trust Moneys – Australian Bureau of Statistics Special Account
| ($’000) |
Opening Balance | Credits(1) | Debits | Closing Balance |
Services for Other Entities and Trust Moneys – Australian Bureau of Statistics Special Account | 2009-10 | 0 | 141 | 141 | 0 |
2010-11 | 0 | 5 | 5 | 0 |
(1) Includes the balance debited from the Other Trust Moneys Account and credited to the SOETM Special Account.
Overview
The Financial Management and Accountability Act 1997 was enacted by the Australian Parliament to ensure that the government's financial management and accountability frameworks were robust and transparent, addressing gaps in financial oversight and control. The Act establishes the framework for the management of the Commonwealth's financial resources, ensuring that they are used efficiently, effectively, and in accordance with legal and policy requirements. Determination 2010/04, issued under the authority of the Minister for Finance and Deregulation, further refines these frameworks by establishing a Special Account for the Australian Bureau of Statistics. This Special Account, titled the Services for Other Entities and Trust Moneys – Australian Bureau of Statistics Special Account, allows the Bureau to hold and manage funds on behalf of entities outside the Commonwealth, such as other governments or individuals, streamlining financial transactions and ensuring that these funds are appropriately accounted for and utilised. The policy objective behind this determination is to enhance the financial management practices of the Australian Bureau of Statistics, facilitating more efficient handling of trust and miscellaneous monies.
Scope and Application
The Financial Management and Accountability Act 1997 (FMA Act) Determination 2010/04 establishes a Special Account for the Australian Bureau of Statistics (ABS), specifically titled the Services for Other Entities and Trust Moneys – Australian Bureau of Statistics Special Account. This account is designed to facilitate the holding and expenditure of funds on behalf of entities other than the Commonwealth, encompassing various transactions such as services provided to other governments and funds received from Comcare related to workers' compensation payments. The establishment of this Special Account allows the ABS to manage these funds independently, ensuring that they are spent in accordance with the specific purposes outlined in the determination. The account is supported by an appropriation under section 20 of the FMA Act and is subject to parliamentary oversight, where disallowance of the determination can occur within five sitting days of tabling in Parliament. The operation of this Special Account is confined to the ABS, which was consulted and agreed with the form of the instrument, reflecting its direct relevance and internal administrative purpose.
Key Provisions
The Financial Management and Accountability Act 1997 (FMA Act) Determination 2010/04 establishes a Special Account for the Australian Bureau of Statistics (ABS), titled the Services for Other Entities and Trust Moneys – Australian Bureau of Statistics Special Account (paragraph 1). This Special Account is designed to hold and manage funds on behalf of entities other than the Commonwealth. Section 20(1) of the FMA Act allows the establishment of such accounts through a determination, and Section 22 mandates that such determinations be tabled in Parliament and may be disallowed within five sitting days (paragraph 3). If not disallowed, the determination comes into effect the day after the disallowance period ends (paragraph 4). Clause 5 of the Determination specifies the purposes for which the Special Account can be debited, including expenditures related to services performed for non-Commonwealth entities and trust moneys (paragraph 5).
Under the Determination, the ABS is required to manage the Special Account in accordance with the provisions outlined. This includes crediting the account with any amounts received for services provided to non-Commonwealth entities or for trust moneys, and debiting the account for expenditures related to these services or moneys (paragraph 6). The ABS must ensure that all transactions within the Special Account adhere to the guidelines set out in the Determination and the FMA Act. This involves maintaining accurate records and ensuring that any debits from the account are for legitimate and specified purposes (paragraph 7).
The Determination also outlines potential consequences for breaches of the provisions related to the Special Account. Although the Determination itself does not specify penalties, breaches of the FMA Act may result in various sanctions. These can include fines, imprisonment, or other penalties as prescribed by the relevant legislation. The severity of these penalties would depend on the nature and extent of the breach (paragraph 9). Furthermore, any failure to comply with the requirements of the Determination could lead to administrative or legal repercussions, impacting the operations and reputation of the ABS (paragraph 10).