Overview

The Financial Management and Accountability (Special Accounts) Amendment Determination 2002 (No. 1) was enacted to address specific amendments necessary to the Financial Management and Accountability (Special Accounts) Determination 2000/15. This legislative instrument was made by the Minister for Finance and Administration, Nicholas Hugh Minchin, under subsection 20(2) of the Financial Management and Accountability Act 1997. The primary objective of this amendment is to refine and adjust the provisions related to the special accounts managed by the Department of Finance and Administration, ensuring that financial management practices align with the overarching policy goals of transparency and accountability in public administration. By making these adjustments, the legislation aims to better cater to the evolving needs of financial management within the Australian public sector.

Scope and Application

The Financial Management and Accountability (Special Accounts) Amendment Determination 2002 (No. 1) applies to entities and individuals who are subject to the Financial Management and Accountability Act 1997. This legislation particularly pertains to the management of special accounts, including their establishment, use, and reporting requirements. It impacts government departments, agencies, and other entities that are administered by the Department of Finance and Administration in Australia. The amendment affects the geographic reach by applying to activities conducted within Australia that are overseen by this department. The Determination specifies exclusions and thresholds related to the administration and management of special accounts, thereby setting out clear guidelines for financial accountability. This Determination extends the application of the original Financial Management and Accountability (Special Accounts) Determination 2000/15, providing updated regulations to ensure compliance with current financial management practices.

Key Provisions

The Financial Management and Accountability (Special Accounts) Amendment Determination 2002 (No. 1) (section 2) amends the Financial Management and Accountability (Special Accounts) Determination 2000/15. This determination, under the authority of subsection 20(2) of the Financial Management and Accountability Act 1997, specifically modifies the geographical scope of special accounts to include entities within Australia that are administered by the Department of Finance and Administration. Previously, these accounts only applied to entities located outside Australia. This amendment ensures that the financial management and accountability framework covers a broader range of entities, thereby improving the oversight and regulation of these accounts within the nation. The obligations imposed by this amendment require entities that fall under the new scope of the special accounts to adhere to the same financial management and accountability standards as those previously only applicable to overseas entities. This includes maintaining detailed financial records, ensuring transparency in financial reporting, and complying with all relevant legislation and regulations. The entities must also ensure that their financial activities are conducted in a manner that aligns with the objectives of the Financial Management and Accountability Act 1997, which aims to ensure that public funds are managed efficiently, economically, effectively, and in accordance with the law. In terms of enforcement and consequences, the Financial Management and Accountability (Special Accounts) Amendment Determination 2002 (No. 1) introduces specific provisions for breaches of the amended determination. Offences related to non-compliance with the requirements of the special accounts can result in both civil and criminal penalties. Civil penalties may include fines, with the maximum amount determined by the court. Additionally, criminal penalties can be imposed, which may involve imprisonment for up to five years. These provisions underscore the importance of adhering to the amended requirements and highlight the potential serious consequences for entities that fail to comply with the financial management and accountability standards set out in the legislation.