PGPA Act Determination (NIAA SOETM Special Account 2020)

Overview

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) was enacted to establish a framework for the management of public governance, performance, and accountability across Australian government agencies. This Act was introduced to address the need for a cohesive and transparent approach to managing public funds, ensuring that agencies operate efficiently, ethically, and in compliance with legislative requirements. The PGPA Act serves to uphold the integrity of public administration by setting standards and providing mechanisms for the oversight of public sector activities. The Act is overseen by the Parliament of Australia, which enacts the legislation and holds the executive branch accountable for its implementation. The underlying policy objective of the PGPA Act is to enhance the efficiency, effectiveness, and accountability of public sector entities, thereby ensuring that public resources are used responsibly and to the benefit of the Australian community. The explanatory statement accompanying the PGPA Act Determination (NIAA SOETM Special Account 2020) clarifies that this specific determination was made under the authority of the Minister for Finance to establish a special account for the National Indigenous Australians Agency (NIAA). This special account is designed to facilitate the NIAA's ability to manage and expend funds on behalf of other entities, following the transfer of Indigenous affairs functions from the Department of the Prime Minister and Cabinet. This legislative instrument aims to support the NIAA in continuing to provide services and manage trust monies effectively, in accordance with the broader objectives of the PGPA Act. The determination was subject to consultation with relevant departments and the NIAA, ensuring that the establishment of the special account aligns with operational needs and legislative requirements.

Scope and Application

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) Determination (NIAA SOETM Special Account 2020) applies to the National Indigenous Australians Agency (NIAA), a Commonwealth entity established as an Executive Agency. This determination establishes a special account, referred to as the NIAA SOETM Special Account 2020, for the NIAA to manage funds on behalf of persons or entities other than the Commonwealth. This account is created to facilitate the NIAA’s handling of funds following the transfer of Indigenous functions from the Department of the Prime Minister and Cabinet. The special account is a legislative instrument under the PGPA Act, which means it is subject to disallowance by either House of Parliament, although it does not require a Statement of Compatibility with Human Rights. The determination was prepared in consultation with the relevant departments and the NIAA.

Key Provisions

The main operative sections of the PGPA Act Determination (NIAA SOETM Special Account 2020) include section 78, which empowers the Minister for Finance to establish a special account, and section 79, which outlines the process for disallowance of such determinations. Under section 80, special accounts can also be established by an Act, and these accounts are governed by the appropriation mechanisms set out in the PGPA Act. Section 81 of the Constitution underpins the operation of these special accounts by consolidating all Commonwealth revenues into the Consolidated Revenue Fund (CRF), with section 83 further stipulating that moneys can only be drawn from the Treasury under an appropriation made by law. The Act imposes specific obligations and requirements on the parties involved, including the necessity for the Minister for Finance to table determinations in each House of Parliament and for these determinations to be subject to disallowance. It also requires that any special accounts be established for specified purposes, such as holding and expending amounts on behalf of persons or entities other than the Commonwealth. The NIAA, as the entity managing the special account, must ensure that its activities comply with the terms of the determination and any relevant legislative requirements. Failure to comply with the provisions of the PGPA Act Determination could result in various consequences. For instance, unauthorised expenditures from the special account could lead to civil or criminal penalties. While the determination does not specify maximum penalties, breaches of the PGPA Act can result in significant financial penalties and, in some cases, imprisonment. The Act also provides for the disallowance of special account determinations by either House of Parliament, which could invalidate the determination if passed within the disallowance period. In accordance with the PGPA Act, the Minister for Finance must table a copy of the determination in each House of Parliament. These determinations are subject to disallowance under section 79 of the PGPA Act, with the disallowance period ending on the fifth sitting day of the House after the determination was tabled. If neither House passes a resolution to disallow the determination, it will commence on the day immediately after the last day on which it could have been disallowed, as specified in the determination. Additionally, while special account determinations are legislative instruments under the Legislation Act 2003, they are not subject to disallowance under section 42 of that Act, hence the absence of a Statement of Compatibility with Human Rights. Consultation with the Department and the NIAA was conducted in the preparation of this determination, ensuring that the views and needs of the involved parties were considered. This collaborative approach aids in the effective implementation of the special account and adherence to the legislative framework.