Financial Management and Accountability (Establishment of SOETM Special Account - ANAO) Determination 2012/06

Overview

The Financial Management and Accountability (Establishment of SOETM Special Account – ANAO) Determination 2012/06, made under the Financial Management and Accountability Act 1997, was enacted to establish a Special Account for the Australian National Audit Office. This legislation aims to consolidate the functions of the Other Trust Moneys and Services for other Governments and Non-agency Bodies Special Accounts into a single Special Account to facilitate the management and accountability of funds held on behalf of entities other than Commonwealth agencies. The establishment of the Services for Other Entities and Trust Moneys Special Account – Australian National Audit Office (SOETM) ensures that the ANAO can efficiently manage small amounts of miscellaneous moneys, such as those received for services rendered to other governments or non-agency bodies. The determination was made by the Minister for Finance and Deregulation and was subject to the tabling and disallowance procedures outlined in the Financial Management and Accountability Act. This instrument is exempt from certain provisions of the Legislative Instruments Act 2003, including the requirement for a Statement of Compatibility with Human Rights, as it pertains to internal government machinery.

Scope and Application

The Financial Management and Accountability (Establishment of SOETM Special Account – ANAO) Determination 2012/06 applies to the Australian National Audit Office and establishes a Special Account within the Consolidated Revenue Fund for the purpose of holding and expending funds on behalf of persons or entities other than the Commonwealth. This account combines the functions of two previous special accounts into one standard purpose account, allowing the Agency to manage miscellaneous funds, such as those received for services provided to non-agency bodies. The account is governed by the Financial Management and Accountability Act 1997, and the establishment of such special accounts requires a determination under subsection 20(1) of the Act, which must be tabled in Parliament and may be disallowed within five sitting days of tabling if either House passes a resolution to that effect. While these determinations are subject to disallowance under section 22 of the FMA Act, they are exempt from the disallowance and sunsetting provisions under the Legislative Instruments Act 2003. The operation of this determination is limited to internal machinery of government purposes, and no external consultation was deemed necessary.

Key Provisions

This Determination, made under subsection 20(1) of the Financial Management and Accountability Act 1997 (FMA Act), establishes a Special Account entitled Services for Other Entities and Trust Moneys Special Account – Australian National Audit Office (SOETM) (subsection 20(1)). This Special Account combines the purposes of the Other Trust Moneys and the Services for other Governments and Non-agency Bodies Special Accounts into a single account (subsection 20(1)). The purpose of the SOETM is to allow the Australian National Audit Office (ANAO) to continue holding and expending amounts on behalf of persons or entities other than the Commonwealth, such as other governments (subsection 20(1)). The obligations imposed by this Determination on the ANAO include the requirement to maintain the SOETM in accordance with the FMA Act and to ensure that all transactions involving the account are appropriately authorised and recorded (section 18 of the FMA Act). The ANAO must also ensure that the account is used only for the purposes specified in the Determination, namely to hold and expend amounts on behalf of persons or entities other than the Commonwealth (subsection 20(1)). The ANAO is also required to provide regular reports to the relevant authorities on the transactions and balances in the account (section 24 of the FMA Act). There are no specific offences, penalties, or civil/criminal consequences for breach of the Determination itself. However, breaches of the FMA Act, which governs the establishment and operation of Special Accounts, may result in penalties. For example, section 30 of the FMA Act provides for a maximum penalty of 2,000 penalty units for knowingly authorising or causing a breach of the Act. Additionally, section 31 of the FMA Act provides for a maximum penalty of 10,000 penalty units for knowingly authorising or causing a breach of the Act that results in a loss or potential loss of Commonwealth moneys. It is important to note that these penalties apply to breaches of the FMA Act generally and not specifically to breaches of this Determination. However, the Determination itself must be complied with to ensure that the SOETM is used in accordance with its specified purposes and in accordance with the requirements of the FMA Act.