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Financial Management and Accountability (Establishment of Special Account for Australian Federal Police) Determination 2011/03

Financial Management and Accountability (Establishment of Special Account for Australian Federal Police) Determination 2011/03

Administered by Department of Finance

Legislation au F2011L00891 Not in force Legislative Instrument

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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 Special Account for Australian Federal Police) Determination 2011/03

Purpose of the Determination

The instrument is made under subsection 20 (1) of the Financial Management and Accountability Act 1997 (FMA Act) and establishes a Special Account entitled the Services for Other Entities and Trust Moneys - Australian Federal Police 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 Services for Other Entities and Trust Moneys - Australian Federal Police 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 this Determination

Reasons for establishing a new SOETM 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 Federal Police to continue 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 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.

Clause 6 of the Determination specifies the purposes for which the Special Account can be debited.

Subclauses 6 (a) and (b) describe the primary purposes for expenditure of amounts from the Special Account.
Subclause 6 (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 6 (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 Federal Police is the Agency affected by this determination and was provided with an opportunity to comment on a draft of this instrument and to supply data for the “Estimates of Transactions Table”. 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 Special Account

The table below outlines the estimated movement of appropriations within the Special Account.

		($’000)
		Opening Balance	Credits(1)	Debits(2)	Closing Balance
Services for Other Entities and Trust Moneys - Australian Federal Police Special Account	2010-2011	0	29,884	0	29,884
	2011-2012	29,884	26,106	26,106	29,884

Note: these figures are estimates for the 2010-2011 and the 2011-12 Financial Years provided by the responsible Agency.

(1) Reflects the anticipated amounts credited to the Special Account.

(2) Reflects the anticipated amounts debited from the Special Account.

Overview

The Financial Management and Accountability (Establishment of Special Account for Australian Federal Police) Determination 2011/03 was enacted to establish a Special Account for the Australian Federal Police (AFP), specifically for Services for Other Entities and Trust Moneys (SOETM). This determination was made under subsection 20(1) of the Financial Management and Accountability Act 1997 (FMA Act). The primary objective of this legislation is to facilitate the AFP's capacity to hold and manage funds on behalf of entities other than the Commonwealth, ensuring financial accountability and management in accordance with the FMA Act. This account enables the AFP to manage small amounts of miscellaneous moneys received for services rendered for non-Commonwealth entities, such as other governments. The determination specifies the nature of the amounts that can be credited to and debited from this account, ensuring that the transactions align with the provisions of the FMA Act and the legislative requirements.

Scope and Application

The Financial Management and Accountability (Establishment of Special Account for Australian Federal Police) Determination 2011/03, made under the Financial Management and Accountability Act 1997, establishes a Special Account titled the Services for Other Entities and Trust Moneys - Australian Federal Police Special Account. This Special Account is specifically intended for the Australian Federal Police to manage and expend funds on behalf of entities other than the Commonwealth, including other governments. The Determination outlines the permissible credits to and debits from this account, ensuring compliance with the Act's financial management provisions. The establishment of this Special Account is subject to parliamentary oversight, as the Finance Minister must table the determination in each House of Parliament, allowing for potential disallowance within five sitting days. The account is supported by an appropriation under section 20 of the FMA Act and operates within the framework of the Consolidated Revenue Fund, facilitating specific financial transactions as defined by the Act.

Key Provisions

The Financial Management and Accountability (Establishment of Special Account for Australian Federal Police) Determination 2011/03 (the Determination) establishes a new Special Account for the Australian Federal Police (AFP) under the Financial Management and Accountability Act 1997 (FMA Act). This account, known as the Services for Other Entities and Trust Moneys – Australian Federal Police Special Account, allows the AFP to manage funds on behalf of other entities. According to section 20(1) of the FMA Act, Special Accounts are established to ensure that specific financial activities are managed separately from the Consolidated Revenue Fund. The Determination outlines the types of transactions that can be credited to and debited from this Special Account (section 6). The obligations under this Determination include ensuring that all transactions involving the Special Account are in line with the specified purposes. The Special Account can be used to credit and debit amounts for services provided by the AFP to other entities, as well as for miscellaneous small amounts. These transactions must adhere to the FMA Act, particularly section 28, which governs general financial management rules. Furthermore, the Determination mandates that the Australian Federal Police, as the administering agency, must maintain accurate records and reports on the account’s activities. Additionally, the Finance Minister is required to table the Determination in both Houses of Parliament, where it may be subject to disallowance (section 22). In the event of non-compliance with the Determination, the consequences can be significant. While the Determination does not explicitly state penalties, breaches of the FMA Act, under which the Determination is made, can lead to both civil and criminal penalties. For example, misuse of public funds or failure to comply with financial management requirements can result in fines and imprisonment. The maximum penalties vary depending on the specific breach but can include substantial fines and imprisonment terms as outlined in the FMA Act. The Determination underscores the importance of adhering to financial management laws to maintain the integrity of government operations.

Area of Law: Financial Management & Accountability
Instrument: Determination
Concepts: Definitions & Interpretation; Offence Provisions; Reporting & Disclosure Obligations

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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