Financial Management and Accountability Determination 2010/07 – Services for Other Entities and Trust Moneys – Export Wheat Commission Special Account Abolition 2010

Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, governs the financial management and accountability framework for Commonwealth entities. The Act aims to ensure effective and efficient financial management, transparency, and accountability in the use of public funds. Determination 2010/07 under this Act was introduced to address the need to abolish the Services for Other Entities and Trust Moneys – Export Wheat Commission Special Account, which was administered by Wheat Exports Australia. The decision to abolish the Special Account was made after it was determined that the account had never been used and was unlikely to be required in the future. This Determination effectively removes the Special Account, streamlining financial management processes and ensuring that public funds are only allocated for necessary and active accounts. The Minister for Finance and Deregulation issued this Determination, which is not subject to disallowance by Parliament, aligning with the internal machinery of government objectives stated in the Legislative Instruments Act 2003.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) sets out the framework for the financial management of the Commonwealth and its entities, including the establishment and management of Special Accounts under section 20. Determination 2010/07, issued under subsection 20(3) of the FMA Act, pertains to the abolition of the Services for Other Entities and Trust Moneys – Export Wheat Commission Special Account, which is administered by Wheat Exports Australia. Special Accounts, as outlined in the FMA Act, allow for specific appropriations from the Consolidated Revenue Fund to be spent on purposes outlined in a determination. This Determination is subject to section 22 of the FMA Act, requiring the Minister to table a copy in each House of Parliament, with disallowance possible within five sitting days; however, the abolition of a Special Account by determination is not subject to disallowance. Wheat Exports Australia, the agency affected by this Determination, has been consulted and agrees with the instrument's form, and as the instrument concerns internal government machinery, no further consultation was deemed necessary.

Key Provisions

Determination 2010/07, under subsection 20(3) of the Financial Management and Accountability Act 1997 (FMA Act), establishes the abolition of the Services for Other Entities and Trust Moneys – Export Wheat Commission Special Account, managed by Wheat Exports Australia. This Special Account, which had never been used, is now no longer in effect following this determination. Special Accounts are established by a determination that specifies the amounts that can be credited and the purposes for which they can be debited. These accounts are supported by an appropriation under section 20 of the FMA Act, allowing funds from the Consolidated Revenue Fund (CRF) to be spent on specified purposes. Determinations establishing or varying Special Accounts must be tabled in each House of the Parliament and may be disallowed within five sitting days. However, determinations to abolish Special Accounts, like this one, are not subject to disallowance. The obligations under the FMA Act require the Finance Minister to ensure that all revenues and moneys raised or received by the Government form one Consolidated Revenue Fund (CRF) and can only be spent as appropriated by Parliament. Special Accounts allow for the specified spending of CRF funds, subject to the requirements of section 20 of the FMA Act. The abolition of the Services for Other Entities and Trust Moneys – Export Wheat Commission Special Account follows Wheat Exports Australia's advice that the account has never been used and is unlikely to be needed in the future. This determination aligns with the need for efficient financial management and the proper use of public funds. Under the FMA Act, breaching the provisions related to the establishment, operation, or abolition of Special Accounts could lead to significant civil and criminal consequences. The Act mandates that funds from the CRF must only be spent as appropriated by Parliament, and any unauthorised spending or misuse of funds could result in legal action. While the specific penalties for breaches are not detailed in the Explanatory Statement, general provisions within the FMA Act could impose fines or other penalties for non-compliance. These penalties reflect the importance of adhering to the legal framework governing financial management in the public sector. In summary, Determination 2010/07 effectively abolishes the Services for Other Entities and Trust Moneys – Export Wheat Commission Special Account, in line with the provisions of the FMA Act. This action is in response to the account's lack of use and potential future necessity. The determination imposes clear obligations on Wheat Exports Australia and the Finance Minister to ensure that public funds are managed efficiently and appropriately. Failure to comply with the requirements of the FMA Act could lead to serious civil or criminal consequences, underscoring the importance of adhering to the legislative framework.