Financial Management and Accountability (Variation and Abolition of the Cultural Ministers’ Council Special Account) Determination 2011/17

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Deregulation

Financial Management and Accountability Act 1997

Financial Management and Accountability (Variation and Abolition of the Cultural Ministers’ Council Special Account) Determination 2011/17

Purpose of the Determination

The instrument is made under subsection 20(2) of the Financial Management and Accountability Act 1997 (FMA Act) and varies the Cultural Ministers’ Council 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.

Operation of this Determination

The instrument abolishes the Cultural Ministers’ Council Special Account which will become redundant to requirements, following discontinuation of the Commonwealth and State/Territory Cultural Ministers’ Council, which is expected to meet for the final time in August 2011. 

The Determination will allow any remaining balance to be debited from the Cultural Ministers’ Council Special Account and to be credited to the new Cultural Special Account.  Subsequently, the former Special Account will be abolished on the earlier of when its balance reaches zero and 31 December 2011.  Any balance existing after 31 December 2011 will be remitted to the CRF.

Effect of this Determination

There may be two Special Accounts with similar purposes operating for a short period of time, until the remaining balance is credited to the Cultural Special Account.

Consultation

The Department of the Prime Minister and Cabinet (PM&C) is the Agency affected by this instrument.  The Agency was provided with drafts of the instrument and agrees with the form of the instrument.  PM&C supplied data for the “Table of Balances and Transactions” (below).  As the instrument is for internal machinery of government purposes, no consultation was necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).

Table of Balances and Transactions of the abolished Special Accounts

The table below outlines the estimated financial implications of the determination. 

(1)    includes the balance of $489,000 expected to be credited to the new Cultural Special Account