EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Financial Management and Accountability Act 1997
Financial Management and Accountability (Establishment of SOETM Special Account – AEC) Determination 2012/04
Purpose of the Determination
The Determination is made under subsection 20(1) of the Financial Management and Accountability Act 1997 (FMA Act) and establishes a Special Account entitled Services for other Entities and Trust Moneys Special Account – Australian Electoral Commission.
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 under subsection 20(1) of the FMA Act or vary Special Accounts under subsection 20(2) of the FMA Act are subject to the tabling and disallowance procedures in section 22 of the FMA Act. Section 22 of the FMA Act requires the Finance Minister to table a copy of the determination in each House of the Parliament. Either House may pass a resolution disallowing a determination within five sitting days of tabling. If the determination is not disallowed, it comes into effect on the day immediately after the last day on which it could have been disallowed.
Subsection 20(6) of the FMA Act exempts determinations that establish Special Accounts under subsection 20(1) of the FMA Act or vary Special Accounts under subsection 20(2) of the FMA Act from the operation of Part 6 (sunsetting) of the Legislative Instruments Act 2003.
Subsection 20(7) of the FMA Act exempts determinations that abolish Special Accounts under subsection 20(3) of the FMA Act from the operation of section 42 (disallowance) and Part 6 (sunsetting) of the Legislative Instruments Act 2003.
A Statement of Compatibility with Human Rights is not required for this legislative instrument. Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires a Statement of Compatibility with Human Rights for all legislative instruments subject to disallowance under section 42 of the Legislative Instruments Act 2003. While legislative instruments made or varied under subsections 20(1) or 20(2) of the FMA Act are subject to disallowance under section 22 of the FMA Act they are not subject to disallowance under section 42 of the Legislative Instruments Act 2003. Legislative instruments made under subsection 20(3) of the FMA Act are exempt from disallowance under subsection 20(7) of the FMA Act, as such a Statement of Compatibility with Human Rights is not required.
Operation of this Determination
The Services for Other Entities and Trust Moneys Special Account – Australian Electoral Commission (SOETM) combines the purposes of the Other Trust Moneys and the Services for other Governments and Non-agency Bodies Special Accounts into a single standard purpose Special Account. The SOETM enables the Agency to continue to hold and expend amounts on behalf of persons or entities other than the Commonwealth. Typically the SOETM will be used to accommodate small amounts of miscellaneous moneys. For example, amounts 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.
Consultation
The Agency affected by this determination was given an opportunity to comment on the instrument.
As the instrument is for internal machinery of government purposes only, no consultation was necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).
Overview
The Financial Management and Accountability (Establishment of SOETM Special Account – AEC) Determination 2012/04 was enacted to address the need for a consolidated Special Account for the Australian Electoral Commission (AEC). This Determination was introduced under subsection 20(1) of the Financial Management and Accountability Act 1997 by the Minister for Finance and Deregulation. It establishes a Special Account named the Services for other Entities and Trust Moneys Special Account – Australian Electoral Commission (SOETM). This account is designed to streamline the management of funds by combining the functions of the Other Trust Moneys and the Services for other Governments and Non-agency Bodies Special Accounts into one standard purpose account. The policy objective is to enable the AEC to efficiently hold and expend funds on behalf of entities other than the Commonwealth, facilitating the management of miscellaneous moneys such as those received for services rendered to non-agency entities like other governments. The Determination also ensures compliance with the tabling and disallowance procedures outlined in section 22 of the FMA Act.
Scope and Application
The Financial Management and Accountability (Establishment of SOETM Special Account – AEC) Determination 2012/04 applies to the establishment of a Special Account within the Commonwealth of Australia's Consolidated Revenue Fund. This special account, titled the Services for Other Entities and Trust Moneys Special Account – Australian Electoral Commission (SOETM), is created under subsection 20(1) of the Financial Management and Accountability Act 1997 (FMA Act). The purpose of this special account is to allow the Australian Electoral Commission to hold and expend moneys on behalf of other persons or entities, such as other governments, facilitating the management of miscellaneous funds received for services rendered to non-Commonwealth entities. This account consolidates the purposes of the Other Trust Moneys and the Services for other Governments and Non-agency Bodies Special Accounts into a single account. The account is subject to the appropriation under section 20 of the FMA Act and is exempt from the disallowance and sunsetting provisions under the Legislative Instruments Act 2003, as outlined in subsections 20(6) and 20(7) of the FMA Act. Additionally, a Statement of Compatibility with Human Rights is not required for this determination.
Key Provisions
The main operative sections of the Financial Management and Accountability (Establishment of SOETM Special Account – AEC) Determination 2012/04 (section 1) establish a Special Account titled 'Services for other Entities and Trust Moneys Special Account – Australian Electoral Commission' (SOETM) under the Financial Management and Accountability Act 1997 (FMA Act). This Special Account is designed to consolidate the purposes of two existing special accounts into one, facilitating the handling of funds on behalf of entities other than the Commonwealth, such as other governments and non-agency bodies. The determination also details the conditions under which credits and debits to this account can be made, ensuring that such transactions are consistent with the purposes specified in the determination. It is important to note that these special accounts, including the SOETM, are subject to parliamentary oversight through the tabling and disallowance procedures outlined in section 22 of the FMA Act, which mandates that the Finance Minister must present a copy of the determination to both Houses of Parliament. If neither House passes a disallowance resolution within five sitting days of tabling, the determination comes into effect.
The obligations and requirements imposed by this Act on the relevant parties primarily revolve around the proper management and usage of the SOETM. The Australian Electoral Commission (AEC) is responsible for ensuring that all transactions within the SOETM strictly adhere to the specified purposes and conditions outlined in the determination. This includes maintaining accurate records and providing necessary documentation to demonstrate compliance with the legal requirements for crediting and debiting the account. Additionally, the AEC must ensure that any small amounts of miscellaneous moneys received are appropriately handled and accounted for within the SOETM, in line with the intent of the determination. Compliance with these obligations is crucial to maintain the integrity and legality of financial transactions associated with the SOETM.
Breaching the provisions of this Act or failing to comply with the specified requirements can result in various consequences. While the determination itself does not explicitly outline specific offences or penalties, breaches of the Financial Management and Accountability Act 1997 or related financial regulations can lead to serious legal repercussions. Such breaches may result in civil or criminal penalties, including fines or imprisonment, depending on the severity and intent behind the breach. Additionally, the AEC may face administrative penalties or sanctions from the relevant oversight bodies, such as the Australian National Audit Office or the Department of Finance. The exact penalties would be determined based on the specific nature of the breach and the applicable laws, but the overarching aim is to ensure stringent adherence to financial management standards and accountability.