Financial Management and Accountability Act 1997 Determination 2007/06 – Section 32 (Transfer from the Department of Industry, Tourism and Resources to the Department of Resources, Energy and Tourism)

Overview

The FMA Act Determination 2007/06, enacted by the Minister for Finance and Deregulation, was introduced to address the need for amending appropriations within the annual Appropriation Acts to reflect changes in departmental arrangements. This was necessitated by the administrative arrangement order of 3 December 2007, made by the Governor-General in Council, which resulted in the abolition and establishment of Departments of State. This determination specifically allows for the transfer of appropriations from the Department of Industry, Tourism and Resources to the Department of Resources, Energy and Tourism. The determination ensures that the financial allocations are accurately reflected in line with the new departmental structure. The policy objective here is to facilitate smooth financial transitions between departments as per the new administrative order, ensuring that appropriations are correctly aligned with the relevant departments.

Scope and Application

The FMA Act Determination 2007/06 applies to the transfer of appropriations between the Department of Industry, Tourism and Resources and the Department of Resources, Energy and Tourism in accordance with the administrative arrangement order made by the Governor-General in Council on 3 December 2007. The purpose of this Determination is to amend the Schedules of annual Appropriation Acts to reflect the changes in departmental arrangements, specifically the abolition and establishment of certain Departments of State. This legislation applies to the Commonwealth of Australia, as it involves amendments to annual Appropriation Acts which are federal in nature. The transfers in appropriation amounts are clearly outlined in the Determination, and the power to make such amendments is derived from the Financial Management and Accountability Act 1997, with the authority delegated to the Secretary of the Department of Finance and Deregulation. There are no exclusions or exemptions mentioned in the Determination, and the transfers are made to ensure the smooth operation of the affected departments in line with the changes in administrative arrangements.

Key Provisions

The FMA Act Determination 2007/06 (subsection 32(2)) is an instrument that allows the transfer of appropriations between the Department of Industry, Tourism and Resources and the Department of Resources, Energy and Tourism, in accordance with changes to departmental arrangements. Specifically, this Determination effects the transfer of funding as a result of the administrative arrangement order of 3 December 2007, which involved the abolition and establishment of various Departments of State. The Determination mandates the transfer of several amounts from the Department of Industry, Tourism and Resources to the Department of Resources, Energy and Tourism, including $32,187,366 from the departmental item in the annual Appropriation Act (No. 1) 2007-2008, $135,458,690.84 from one administered item in the same Act, and $38,495,424.47 from the State, ACT, NT and local government item in annual Appropriation Act (No. 2) 2007-2008. The obligations imposed by this Determination primarily concern the transfer of specified appropriations between the two departments, ensuring that funding is correctly allocated in light of the changes in departmental responsibilities. The parties involved are required to adhere to the financial transfer details stipulated by the Determination, facilitating an orderly and legally compliant transition of funds. In terms of compliance, failure to adhere to the transfer provisions outlined in the Determination could lead to legal repercussions. The consequences of non-compliance could include financial discrepancies, misallocation of funds, or other administrative penalties. However, the Determination itself does not explicitly outline specific penalties or sanctions for breaches. It is implicit that adherence to the legal framework, including the Financial Management and Accountability Act 1997, would be expected and any non-compliance could result in broader legal consequences under the relevant Acts. Given that this Determination is a legislative instrument under the Legislative Instruments Act 2003, it is subject to the scrutiny and requirements of that Act. The legislative process ensures that such determinations are made with due regard to their implications and are implemented correctly to maintain the integrity of financial management within the public sector.