FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997

This compilation was prepared on 20 March 2009
taking into account amendments up to Act No. 90 of 2008

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General's Department, Canberra

Reader's guide

This Guide aims to give you a general overview of the matters covered by this Act. It also gives you some information about the way this Act is organised.

Overview of this Act

The main purpose of this Act is to provide a framework for the proper management of public money and public property. Public money and public property are defined in section 5. Broadly, those terms refer to money or property that is owned or held by the Commonwealth, including money or property held on trust.

This Act contains rules about how public money and property are to be dealt with. Many of the detailed rules are in Finance Minister's Orders made under section 63 and regulations made under section 65.

Many of the rules in this Act apply to officials of Agencies and to Chief Executives of Agencies. Agency, official and Chief Executive are defined in section 5.

Summary of this Act

Part 1 Preliminary: This Part deals with the commencement of this Act, its application to things outside Australia and its application to the Crown.

Part 2 General provisions about definitions and offences: This Part contains definitions of terms that are frequently used throughout this Act and general provisions about offences.

Part 3 Collection, custody etc. of public money: This Part deals with the collection and custody of public money. It deals with matters such as banking and liability for loss of public money.

Part 4 Accounting, appropriations and payments: This Part establishes an accounting framework for public money that involves the Consolidated Revenue Fund and a system of accounts called Special Accounts. This Part has a number of rules that apply to Parliamentary appropriations. It also deals with miscellaneous matters such as act of grace payments by the Commonwealth and waiver of debts owing to the Commonwealth.

Part 5 Borrowing and investment: This Part gives the Finance Minister limited powers to borrow money on behalf of the Commonwealth. It also deals with the investment of public money.

Part 6 Control and management of public property: This Part has rules about the control and management of public property. It deals with matters such as misapplication of public property and liability for loss of public property.

Part 7 Special responsibilities of Chief Executives: The rules in this Part apply to Chief Executives of Agencies. The rules deal generally with the control and management of public money and public property for which Chief Executives have a management responsibility.

Part 8 Reporting and audit: This Part deals with the preparation and audit of financial statements. It also deals with the audit of annual financial statements of Agencies.

Part 9 Miscellaneous: This Part deals with miscellaneous matters such as Finance Minister's Orders, regulations and delegations.

Related legislation

The following Acts are directly relevant to the operation or interpretation of this Act:

The Auditor‑General Act 1997 establishes the office of Auditor‑General and sets out the functions of the Auditor‑General. It also provides for the appointment of an Independent Auditor to audit the Australian National Audit Office.

The Acts Interpretation Act 1901 contains many general rules about the meaning or effect of many terms and provisions that are commonly used in Commonwealth Acts.

This list is not exhaustive. Acts other than those listed above might also affect the operation or interpretation of this Act.

Another related Act is the Commonwealth Authorities and Companies Act 1997. It contains reporting rules, accountability rules and other rules that apply to Commonwealth authorities and Commonwealth companies.

Contents

Part 1--Preliminary 1

1............ Short title [see Note 1] ....................................................................... 1

2............ Commencement [see Note 1] .............................................................. 1

3............ This Act binds the Crown .................................................................. 1

4............ This Act extends to things outside Australia ..................................... 1

Part 2--General provisions about definitions and offences 2

5............ Definitions .......................................................................................... 2

6............ Notional payments and receipts by Agencies .................................... 4

Part 3--Collection, custody etc. of public money 5

8............ Agreements with banks about receipt, transmission etc. of public money 5

9............ Official bank accounts ........................................................................ 5

10.......... Public money must be promptly banked etc. ..................................... 6

11.......... Public money not to be paid into non‑official account ....................... 6

12.......... Receipt and spending of public money by outsiders ......................... 6

13.......... Money not to be withdrawn from official account without authority 7

14.......... Misapplication or improper use of public money ............................. 7

15.......... Liability for loss of public money ...................................................... 7

16.......... Special Instructions by Finance Minister about handling etc. of special public money 8

Part 4--Accounting, appropriations and payments 10

Division 1--Accounts and records in relation to public money 10

19.......... Accounts and records in relation to public money ........................... 10

Division 1A--Special Accounts 11

20.......... Establishment of Special Accounts by Finance Minister ................. 11

21.......... Special Accounts established by other Acts .................................... 12

22.......... Disallowance of determinations relating to Special Accounts .......... 12

Division 2--Drawing rights 14

26.......... Drawing rights required for payment etc. of public money ............. 14

27.......... Issue of drawing rights ...................................................................... 14

Division 3--Appropriations 15

28.......... Repayments by the Commonwealth ................................................ 15

30.......... Repayments to the Commonwealth ................................................. 15

30A....... Appropriations to take account of recoverable GST ....................... 15

31.......... Relevant Agency receipts ................................................................. 16

32.......... Transfer of Agency functions ........................................................... 17

Division 3A--Recording of amounts in accounts and records 19

32A....... Recording of amounts in accounts and records ................................. 19

Division 4--Miscellaneous 20

33.......... Finance Minister may approve act of grace payments .................... 20

34.......... Finance Minister may waive debts etc. ............................................ 20

36.......... Presiding Officers may approve expenditure ................................... 21

Part 5--Borrowing and investment 22

37.......... Unauthorised borrowing agreements are invalid ............................... 22

38.......... Finance Minister may borrow for short periods .............................. 22

39.......... Investment of public money ............................................................. 22

Part 6--Control and management of public property 25

40.......... Custody etc. of securities ................................................................. 25

41.......... Misapplication or improper use of public property ........................ 25

42.......... Liability for loss etc. of public property .......................................... 25

43.......... Gifts of public property ................................................................... 26

Part 7--Special responsibilities of Chief Executives 28

44.......... Promoting efficient, effective and ethical use etc. of Commonwealth resources 28

44A....... Keeping responsible Minister and Finance Minister informed ........ 28

45.......... Fraud control plan ............................................................................ 29

46.......... Audit committee ............................................................................... 29

47.......... Recovery of debts ............................................................................. 29

48.......... Accounts and records ....................................................................... 29

49.......... Annual financial statements .............................................................. 30

50.......... Additional financial statements ........................................................ 30

51.......... Reporting requirements if Agency ceases to exist or Agency functions are transferred 30

52.......... Chief Executive's instructions .......................................................... 31

53.......... Chief Executive may delegate powers .............................................. 31

Part 8--Reporting and audit 33

54.......... Finance Minister must publish monthly financial statements ......... 33

55.......... Preparation of annual statements by Finance Minister .................... 33

56.......... Audit of Finance Minister's annual financial statements ................. 33

57.......... Audit of annual financial statements of Agency ............................... 34

Part 9--Miscellaneous 35

58.......... Modifications of Act for intelligence or security agency or prescribed law enforcement agency 35

60.......... Misuse of Commonwealth credit card .............................................. 35

62.......... Finance Minister may delegate powers ............................................ 36

62A....... Treasurer may delegate powers ........................................................ 36

63.......... Finance Minister's Orders ................................................................ 37

64.......... Guidelines by Ministers ................................................................... 37

65.......... Regulations ....................................................................................... 37

Notes 39

Notes to the Financial Management and Accountability Act 1997

Note 1

The Financial Management and Accountability Act 1997 as shown in this compilation comprises Act No. 154, 1997 amended as indicated in the Tables below.

The Financial Management and Accountability Act 1997 was amended by the Parliamentary Service (Consequential and Transitional) Determination 2000/1 (No. 1 of 2000). The amendment is incorporated in this compilation.

For all relevant information pertaining to application, saving or transitional provisions see Table A.

Table of Acts

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions
Financial Management and Accountability Act 1997	154, 1997	24 Oct 1997	1 Jan 1998 (see Gazette 1997, No. GN49)
Financial Management Legislation Amendment Act 1999	20, 1999	19 Apr 1999	Ss. 5-9 and Schedule 1 (items 1-33): 1 July 1999 (a)	Ss. 5-9
Public Employment (Consequential and Transitional) Amendment Act 1999	146, 1999	11 Nov 1999	Schedule 1 (item 481): 5 Dec 1999 (see Gazette 1999, No. S584) (b)	--
Financial Management and Accountability Amendment Act 2000	80, 2000	30 June 2000	30 June 2000	--
Criminal Code Amendment (Theft, Fraud, Bribery and Related Offences) Act 2000	137, 2000	24 Nov 2000	Ss. 1-3 and Schedule 1 (items 1, 4, 6, 7, 9-11, 32): Royal Assent Remainder: 24 May 2001	Sch. 2 (items 418, 419)
Financial Framework Legislation Amendment Act 2005	8, 2005	22 Feb 2005	S. 4, Schedule 1 (items 139-144, 496) and Schedule 2 (items 113-118, 174): Royal Assent	S. 4, Sch. 1 (item 496) and Sch. 2 (item 174)
Financial Framework Legislation Amendment Act (No. 1) 2006	30, 2006	6 Apr 2006	Schedule 2: 1 July 2006 Schedule 3 (item 10): 24 Mar 2005 Remainder: 7 Apr 2006	--
Financial Framework Legislation Amendment Act (No. 1) 2007	166, 2007	25 Sept 2007	Schedule 1 (items 1-8, 10, 13-16, 19, 21): 1 Jan 2008 (see F2007L04788) Remainder: Royal Assent	Sch. 1 (items 13(2), 14-18)
Commonwealth Securities and Investment Legislation Amendment Act 2008	78, 2008	12 July 2008	Schedule 1 (items 6-9, 15): 13 July 2008	Sch. 1 (item 15)
Financial Framework Legislation Amendment Act 2008	90, 2008	20 Sept 2008	Schedule 1 (items 15-61, 68-74): 20 Mar 2009	Sch. 1 (items 68-74)

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
Reader's Guide...................	am. No. 20, 1999
Part 2
S. 5......................................	am. Nos. 20 and 146, 1999; Determination No. 1 of 2000; No. 78, 2008
S. 6......................................	rs. No. 90, 2008
Note to s. 6..........................	rs. No. 20, 1999; No. 90, 2008
S. 7......................................	rep. No. 90, 2008
Part 3
Ss. 10, 11............................	am. No. 90, 2008
Heading to s. 12..................	rs. No. 90, 2008
Ss. 12-14............................	am. No. 90, 2008
S. 16....................................	am. No. 90, 2008
Part 4
Heading to Part 4.................	rs. No. 20, 1999
Division 1
Div. 1 of Part 4....................	rs. No. 20, 1999
Ss. 17, 18............................	rep. No. 20, 1999
S. 19....................................	rs. No. 20, 1999
Division 1A
Div. 1A of Part 4..................	ad. No. 20, 1999
S. 20....................................	rs. No. 20, 1999
	am. No. 8, 2005
Note to s. 20(1)...................	ad. No. 166, 2007
Note to s. 20(4)...................	ad. No. 8, 2005
S. 21....................................	rs. No. 20, 1999
	am. No. 8, 2005
Note to s. 21(1)...................	rep. No. 8, 2005
Notes 1, 2 to s. 21(1)..........	ad. No. 8, 2005
Note 3 to s. 21(1)................	ad. No. 166, 2007
S. 22....................................	rs. No. 20, 1999
Ss. 23-25............................	rep. No. 20, 1999
Division 2
Ss. 26, 27............................	am. No. 20, 1999; No. 90, 2008
Division 3
Heading to s. 28..................	rs. No. 166, 2007
S. 28....................................	am. No. 20, 1999; No. 166, 2007
S. 29....................................	rep. No. 20, 1999
S. 30....................................	rs. No. 20, 1999; No. 166, 2007
S. 30A.................................	ad. No. 80, 2000
	am. No. 166, 2007
S. 31....................................	am. No. 20, 1999
	rs. No. 166, 2007
S. 32....................................	rs. No. 166, 2007
Division 3A
Div. 3A of Part 4..................	ad. No. 166, 2007
S. 32A.................................	ad. No. 166, 2007
Division 4
S. 33....................................	am. No. 30, 2006; No. 90, 2008
Note to s. 33(1)...................	ad. No. 90, 2008
Note to s. 33(3)...................	ad. No. 30, 2006
	am. No. 90, 2008
S. 34....................................	am. No. 90, 2008
Note to s. 34(1)...................	ad. No. 90, 2008
S. 35....................................	am. No. 20, 1999
	rep. No. 90, 2008
Part 5
S. 39....................................	rs. No. 20, 1999
	am. Nos. 78 and 90, 2008
Note to s. 39(6)...................	am. No. 90, 2008
Part 6
Ss. 40, 41............................	am. No. 90, 2008
S. 43....................................	am. No. 90, 2008
Part 7
Heading to s. 44..................	am. No. 90, 2008
S. 44....................................	am. No. 90, 2008
Note to s. 44(1)...................	ad. No. 90, 2008
S. 44A.................................	ad. No. 90, 2008
S. 46....................................	rs. No. 90, 2008
Heading to s. 50..................	am. No. 90, 2008
S. 50....................................	am. No. 90, 2008
S. 51....................................	rs. No. 90, 2008
S. 53....................................	am. No. 20, 1999; No. 8, 2005; No. 166, 2007
Part 8
S. 54....................................	rs. No. 20, 1999
Part 9
Heading to s. 58..................	am. No. 30, 2006
S. 58....................................	am. No. 30, 2006
S. 59....................................	am. No. 8, 2005
	rep. No. 90, 2008
S. 60....................................	am. No. 90, 2008
S. 61....................................	rep. No. 137, 2000
S. 62A.................................	ad. No. 20, 1999
	rs. No. 78, 2008
Ss. 63-65............................	am. No. 90, 2008
Appendix A.........................	rep. No. 20, 1999

Table A

Application, saving or transitional provisions

Financial Management Legislation Amendment Act 1999 (No. 20, 1999)

5 Conversion of RMF components and CAF components

(1) This section applies to each old component that:

(a) was in existence immediately before the commencing time; or

(b) is established by a provision of an Act that comes into operation after the commencing time.

However, this section does not apply to the Loan Consolidation and Investment Reserve.

Note: Schedule 1 repeals the Loan Consolidation and Investment Reserve Act 1955.

(2) The conversion time for the old component is:

(a) the commencing time, if the component was in existence immediately before the commencing time; or

(b) otherwise, the time when the component is established.

(3) At the conversion time:

(a) a new account is established in respect of the old component; and

(b) any balance of the old component is to be credited to the new account.

(4) The new account is a Special Account for the purposes of the Financial Management and Accountability Act 1997.

(5) The name of the new account is:

(a) if the name of the old component ends with "Reserve"--a name that is the same as the name of the old component, but ends with "Account" instead of "Reserve"; or

(b) if the name of the old component ends with "Fund"--a name that is the same as the name of the old component, but ends with "Account" instead of "Fund"; or

(d) in any other case--the name determined in writing by the Finance Minister for the purposes of this subsection.

(6) In relation to matters that happen after the commencing time, a reference in any instrument to the old component is to be read as a reference to the new account and, in particular:

(a) a reference to:

(i) transferring or paying an amount from the Consolidated Revenue Fund to the old component; or

(ii) debiting an amount from the Consolidated Revenue Fund and crediting the amount to the old component;

is to be read as a reference to crediting the amount to the new account; and

(b) a reference to:

(i) transferring or paying an amount to the Consolidated Revenue Fund from the old component; or

(ii) debiting an amount from the old component and crediting the amount to the Consolidated Revenue Fund;

is to be read as a reference to debiting the amount from the new account; and

(c) a reference to paying an amount out of the old component is to be read as a reference to paying the amount out of the Consolidated Revenue Fund and debiting the amount from the new account.

(7) If the old component was established by the Finance Minister under the Financial Management and Accountability Act 1997, then:

(a) the new account is taken to have been established by a determination under section 20 of that Act (as amended by this Act); and

(b) that determination may be revoked or varied under that section; and

6 Transitional provisions for the Loan Fund

(1) In any instrument, a reference to the Loan Fund is to be read as a reference to the Consolidated Revenue Fund, in relation to matters occurring after the commencing time.

(2) Without limiting subsection (1):

(a) after the commencing time, any appropriation that is expressed to be an appropriation of the Loan Fund has effect as an appropriation of the Consolidated Revenue Fund; and

(b) after the commencing time, any provision of an instrument that is expressed to require or permit the payment of an amount from the Loan Fund has effect as if it required or permitted the payment of that amount from the Consolidated Revenue Fund.

7 Instruments referring to payments into the Consolidated Revenue Fund

In any instrument, a reference to payment of an amount into the Consolidated Revenue Fund is to be read as a reference to payment of the amount to the Commonwealth (unless the amount is already public money).

Note: Public money is defined in the Financial Management and Accountability Act 1997.

8 Quarterly statements sufficient during transitional period

(1) Section 54 of the Financial Management and Accountability Act 1997 has effect in relation to the transitional period as if references to a month of a financial year were references to a quarter of a financial year.

(2) In this section:

transitional period means the period:

(a) starting on the day on which this Act commences; and

(b) ending at the end of the third quarter after the quarter in which this Act commences.

9 Regulations

(1) The Governor‑General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.

(2) In particular, regulations may be made for matters of a transitional or saving nature arising from the amendments made by this Act.

Criminal Code Amendment (Theft, Fraud, Bribery and Related Offences) Act 2000 (No. 137, 2000)

Schedule 2

418 Transitional--pre‑commencement offences

(1) Despite the amendment or repeal of a provision by this Schedule, that provision continues to apply, after the commencement of this item, in relation to:

(a) an offence committed before the commencement of this item; or

(b) proceedings for an offence alleged to have been committed before the commencement of this item; or

as if the amendment or repeal had not been made.

(2) Subitem (1) does not limit the operation of section 8 of the Acts Interpretation Act 1901.

419 Transitional--pre‑commencement notices

If:

(a) a provision in force immediately before the commencement of this item required that a notice set out the effect of one or more other provisions; and

(b) any or all of those other provisions are repealed by this Schedule; and

the amendment of the first‑mentioned provision by this Schedule does not affect the validity of such a notice that was given before the commencement of this item.

Financial Framework Legislation Amendment Act 2005 (No. 8, 2005)

4 Saving of matters in Part 2 of Schedule 1

(1) If:

(a) a decision or action is taken or another thing is made, given or done; and

(b) the thing is taken, made, given or done under a provision of a Part 2 Act that had effect immediately before the commencement of this Act;

then the thing has the corresponding effect, for the purposes of the Part 2 Act as amended by this Act, as if it had been taken, made, given or done under the Part 2 Act as so amended.

(2) In this section:

Part 2 Act means an Act that is amended by an item in Part 2 of Schedule 1.

Schedule 1

496 Saving provision--Finance Minister's determinations

If a determination under subsection 20(1) of the Financial Management and Accountability Act 1997 is in force immediately before the commencement of this item, the determination continues in force as if it were made under subsection 20(1) of that Act as amended by this Act.

Schedule 2

174 Saving provision--provisions that formerly referred to the Treasurer

(1) Any thing that:

(a) was done by the Treasurer, or by a delegate of the Treasurer, before the commencing time under an affected provision; and

(b) was in effect immediately before the commencing time;

continues to have effect after the commencing time as if it had been done by the Finance Minister under the affected provision.

(2) In this item:

affected provision means a provision that is amended by an item in this Schedule so as to replace references to the Treasurer with references to the Finance Minister.

commencing time means the day this Act receives the Royal Assent.

Finance Minister means the Minister who administers the Financial Management and Accountability Act 1997.

Financial Framework Legislation Amendment Act (No. 1) 2007 (No. 166, 2007)

Schedule 1

13 Saving--agreements for "net appropriations"

(2) Despite the amendment made by item 8, section 31 of the Financial Management and Accountability Act 1997 (as in force immediately before the commencement of that item) continues to apply after that commencement in relation to agreements entered into before that commencement.

14 Application--repayments by the Commonwealth

The amendment made by item 4 applies in relation to amounts received by the Commonwealth before or after the commencement of that item.

15 Application--repayments to the Commonwealth

The amendment made by item 6 applies in relation to amounts paid by the Commonwealth before or after the commencement of that item.

16 Application--recoverable GST

The amendment made by item 7 applies in relation to payments that occur after the commencement of that item.

17 Saving--transfer of Agency functions

Despite the amendment made by item 9, section 32 of the Financial Management and Accountability Act 1997 (as in force immediately before the commencement of that item) continues to apply after that commencement in relation to a change in function that occurred before that commencement.

18 Transitional--directions to delegates

A direction in force under subsection 53(2) of the Financial Management and Accountability Act 1997 immediately before the commencement of this item continues in force after that commencement as if it were a direction given under that subsection after that commencement.

Commonwealth Securities and Investment Legislation Amendment Act 2008 (No. 78, 2008)

Schedule 1

15 Application of items 6 to 9

The amendments made by items 6 to 9 of this Schedule apply in relation to public money invested on or after the commencement of those items.

Financial Framework Legislation Amendment Act 2008 (No. 90, 2008)

Schedule 1

68 Application--receipt and spending of public money by outsiders

(1) The amendment made by item 20 applies in relation to agreements or arrangements entered into on or after the commencement of that item.

(2) Subsection 12(2) of the Financial Management and Accountability Act 1997 (as inserted by this Act) applies in relation to agreements or arrangements entered into on or after the commencement of this item.

69 Application--drawing rights

The amendments made by items 32 and 33 apply in relation to drawing rights issued on or after the commencement of those items.

70 Saving--payments pending probate etc.

Despite the repeal of section 35 of the Financial Management and Accountability Act 1997 made by this Schedule, that section (as in force immediately before the commencement of item 39) continues to apply on and after that commencement in relation to payments that were authorised before that commencement.

71 Transitional--investment of public money

(1) If the corporation referred to in subsection 39(7) of the Financial Management and Accountability Act 1997 (as in force immediately before the commencement of item 44) held an investment under section 39 of that Act immediately before the commencement of that item, the investment is taken, on and after the commencement of that item, to be held by the Finance Minister on behalf of the Commonwealth.

(2) If the corporation referred to in subsection 39(8) of the Financial Management and Accountability Act 1997 (as in force immediately before the commencement of item 44) held an investment under section 39 of that Act immediately before the commencement of that item, the investment is taken, on and after the commencement of that item, to be held by the Treasurer on behalf of the Commonwealth.

72 Transitional--audit committees

(1) This item applies to an audit committee established in accordance with section 46 of the Financial Management and Accountability Act 1997 before the commencement of this item and in existence immediately before that commencement.

(2) The audit committee continues in existence on and after that commencement for the purposes of section 46 of that Act, as amended by this Act.

(3) However, if the audit committee does not comply with section 46 of that Act, as amended by this Act, the Chief Executive concerned must take whatever steps are necessary to ensure that the committee does so comply.

73 Saving--provision of information

Despite the repeal of subsection 50(2) of the Financial Management and Accountability Act 1997 made by this Schedule, that subsection (as in force immediately before the commencement of this item) continues to apply on and after that commencement in relation to a requirement made before that commencement.

74 Application--change of Agency functions

The amendment made by item 54 applies in relation to:

(a) Agencies that cease to exist on or after the commencement of that item; and

(b) functions of an Agency that are transferred on or after the commencement of that item.

Commonwealth Consolidated Acts

FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997 - NOTES