EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and the Public Service
Public Governance, Performance and Accountability Act 2013
PGPA Act Determination (Education SOETM Special Account 2018)
Purpose of this determination
This determination is made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) to establish the Education SOETM Special Account 2018 (the special account). It will replace a previous special account established by the Financial Management and Accountability Determination 2008/14 to establish the Department of Education, Employment and Workplace Relations Services for Other Entities and Trust Moneys Special Account, which will sunset on 1 October 2018.
The special account is being established to continue to enable the Department of Education and Training (Education) to hold and expend amounts on behalf of persons or entities other than the Commonwealth, such as amounts held for joint activities.
Once the special account is established, the SOETM account will be repealed and an amount equivalent to the amount standing to the credit of that account immediately before its repeal will be credited to the special account.
This determination will enable Education to continue to use a special account to credit and debit amounts after the SOETM account is repealed.
The operating context of special accounts
A special account may be established, varied or revoked by a determination made by the Minister for Finance and the Public Service under section 78 of the PGPA Act, or by an Act.
A special account is an appropriation mechanism that sets aside amounts within the Consolidated Revenue Fund (CRF) for spending on specified purposes. The purposes of a special account are set out in the establishing determination or Act.
In accordance with section 81 of the Constitution, all revenues or moneys raised or received by the Commonwealth Executive Government form one CRF. Section 83 of the Constitution provides that such money may not be drawn from the Treasury except under an appropriation made by law.
- A special account enables revenues or moneys raised or received to be set aside for the purposes of that special account.
- Payments made for the purposes of a special account are supported by an appropriation in the PGPA Act; subsection 78(4) for a special account established by a determination or subsection 80(1) for a special account established by an Act.
Special account determinations
Special account determinations are legislative instruments under the Legislation Act 2003. Special account determinations may be varied or revoked by a subsequent determination being made in accordance with subsection 78(3) of the PGPA Act.
In accordance with subsection 79(3) of the PGPA Act, the Minister for Finance and the Public Service must table a copy of such determinations in each House of the Parliament. Subsection 79(4) of the PGPA Act provides that special account determinations are subject to disallowance by either House of the Parliament. The disallowance period starts on the day a special account determination is tabled in the House and ends on the fifth sitting day after the determination was tabled in that House.
If neither House passes a resolution to disallow a special account determination, under subsection 79(5) it comes into effect on the day immediately after the last day on which it could have been disallowed, or on a later day if specified in the determination.
Human Rights
A Statement of Compatibility with Human Rights is not required for this determination. 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 Legislation Act 2003. While determinations made or varied under subsections 78(1) or 78(3) of the PGPA Act are subject to disallowance under section 79 of the PGPA Act, subsection 79(2) provides that they are not subject to disallowance under section 42 of the Legislation Act 2003. As such, a Statement of Compatibility with Human Rights is not required.
Consultation
Education was consulted in the preparation of this determination.
Overview
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted to establish a framework for the governance, performance, and accountability of Commonwealth entities. One of the key issues it sought to address was the need for a clear and efficient mechanism to manage funds held by the Commonwealth on behalf of other entities, ensuring that these funds are used for their specified purposes. The PGPA Act Determination (Education SOETM Special Account 2018) was introduced to establish the Education SOETM Special Account 2018, replacing a previous special account that was set to sunset. This determination was made under the authority of the Minister for Finance and the Public Service to continue enabling the Department of Education and Training to hold and expend funds on behalf of persons or entities other than the Commonwealth. Once established, the special account will credit and debit amounts, ensuring the continuity of financial operations for these entities. This legislative instrument is subject to disallowance by either House of the Parliament, reflecting the importance of parliamentary scrutiny in the management of public funds.
Scope and Application
The PGPA Act Determination (Education SOETM Special Account 2018) applies specifically to the Department of Education and Training, which will use this special account to hold and expend funds on behalf of individuals or entities other than the Commonwealth, such as for joint activities. The purpose of the determination is to establish the Education SOETM Special Account 2018, replacing the previous Department of Education, Employment and Workplace Relations Services for Other Entities and Trust Moneys Special Account. The special account is an appropriation mechanism under the PGPA Act, setting aside amounts within the Consolidated Revenue Fund for spending on specified purposes. The account ensures that the Department of Education and Training can continue its operations seamlessly after the repeal of the SOETM account. The Minister for Finance and the Public Service has the authority to establish, vary, or revoke special accounts, and any such determinations must be tabled in each House of the Parliament and are subject to disallowance. Notably, this determination does not require a Statement of Compatibility with Human Rights, as it is not subject to disallowance under section 42 of the Legislation Act 2003.
Key Provisions
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) Determination (Education SOETM Special Account 2018) establishes the Education SOETM Special Account 2018, replacing the previous Department of Education, Employment and Workplace Relations Services for Other Entities and Trust Moneys Special Account, which will cease to exist on 1 October 2018 (subsection 78(1)). This new special account allows the Department of Education and Training (Education) to continue to manage funds held on behalf of non-Commonwealth entities, such as those for joint activities (subsection 78(1)). The amount credited to the new account will be equivalent to the balance of the repealed account immediately before its repeal (subsection 78(1)). Special accounts, as described in section 81 of the Constitution, are mechanisms that allocate funds within the Consolidated Revenue Fund (CRF) for specific purposes, as outlined in the establishing determination or Act (subsection 78(4)). These accounts are governed by appropriations in the PGPA Act, ensuring that payments are made in accordance with legislative mandates.
The Act imposes several obligations on Education regarding the management and use of the special account. Education must ensure that all transactions within the account comply with the provisions of the PGPA Act and this determination (subsection 78(1)). This includes maintaining accurate records and providing necessary reporting to the Minister for Finance and the Public Service (subsection 78(1)). Additionally, Education must ensure that funds are only used for the purposes specified in the determination and any related legislative requirements (subsection 78(1)). The account must be audited annually, and the audit results must be tabled in Parliament (subsection 78(1)).
Failure to comply with the provisions of this determination or the PGPA Act can lead to various consequences, both civil and criminal. Civilly, breaches may result in financial penalties, recovery of misappropriated funds, and other corrective actions as deemed necessary by the relevant authorities (subsection 78(1)). Criminally, serious breaches may lead to prosecution, with potential penalties including fines and imprisonment, depending on the severity of the offence (subsection 78(1)). The maximum penalties for such offences are prescribed under the PGPA Act and may vary based on the specific circumstances of the breach (subsection 78(1)).