Financial Management and Accountability Act 1997 Determination 2007/07 – Section 32 (Transfer from the Department of Communications, Information Technology and the Arts to the Department of Broadband, Communications and the Digital Economy)

Overview

The FMA Act Determination 2007/07, issued under the authority of the Minister for Finance and Deregulation, was enacted to facilitate the transfer of appropriations between departments as a result of administrative changes. Specifically, this determination addresses the need to amend the appropriations of the annual Appropriation Acts to reflect the restructuring of government departments. The determination is rooted in subsection 32(2) of the Financial Management and Accountability Act 1997, which empowers the Minister for Finance and Deregulation to adjust appropriations associated with the transfer of functions between agencies. This power is exercised to ensure the financial arrangements align with the newly established departmental structure, specifically the transfer of functions from the Department of Communications, Information Technology and the Arts to the Department of Broadband, Communications and the Digital Economy. The enactment by the Parliament of Australia through the Minister for Finance and Deregulation aims to streamline financial management and accountability in light of departmental reorganisation. The policy objective is to maintain fiscal integrity and ensure that budgetary allocations follow the transfer of responsibilities, thereby facilitating seamless operational continuity and effective governance within the newly configured departments.

Scope and Application

The FMA Act Determination 2007/07 applies to the transfer of appropriations from the Department of Communications, Information Technology and the Arts to the Department of Broadband, Communications and the Digital Economy, as a result of the administrative arrangement order made by the Governor-General in Council on 3 December 2007. This determination allows for the amendment of the Schedules to annual Appropriation Acts to reflect the change in departmental arrangements and to ensure the smooth transition of funding allocations from one department to the other. The transferred appropriations include $55,650,546.16 from the departmental item, $494,634,555.42 under one administered item, and $147,000 in equity injections from the annual Appropriation Act (No. 1) 2007-2008, as well as $147,000 in equity injections from the annual Appropriation Act (No. 2) 2007-2008. The jurisdiction of this Act is Commonwealth-wide, and it applies to the specified departments involved in the transfer. The determination does not apply to any other departments, entities, or individuals outside of the scope of this transfer. There are no stated exclusions, exemptions, or thresholds in this Determination, as it is specifically tailored to address the financial implications of the departmental restructuring. This determination extends or restricts application through subordinate instruments as required to facilitate the transfer of appropriations and ensure the proper allocation of funds to the newly established department.

Key Provisions

The key provisions of the FMA Act Determination 2007/07, specifically section 32, involve the transfer of appropriations from the Department of Communications, Information Technology and the Arts to the Department of Broadband, Communications and the Digital Economy. Under subsection 32(2) of the Financial Management and Accountability Act 1997 (FMA Act), the Minister for Finance and Deregulation has the authority to amend Schedules to annual Appropriation Acts to facilitate the transfer of appropriations when functions are transferred between agencies (section 32(2)). This authority is exercised by the Minister through the issuance of a determination, which then amends the relevant Schedule in accordance with the terms of the determination. The administrative changes, which led to the establishment of new departments, necessitated amendments to the appropriations to reflect these new departmental arrangements. The obligations imposed by this determination on the relevant departments include ensuring that the transferred appropriations are accurately reflected in their respective budgets and financial records. The Department of Broadband, Communications and the Digital Economy must account for the newly transferred funds as part of its financial management and accountability framework, while the Department of Communications, Information Technology and the Arts must adjust its financial records to reflect the absence of these funds. The transfer aims to streamline financial management and ensure that the new departmental structure is adequately funded according to the new functional responsibilities. In terms of penalties and consequences for non-compliance, the Act does not explicitly state specific offences or penalties within the Determination itself. However, any failure to comply with the appropriations as amended by the determination could potentially lead to broader financial mismanagement issues under the FMA Act. The FMA Act, in general, provides for various enforcement mechanisms and penalties for non-compliance, including financial penalties, recovery of misapplied funds, and potential criminal charges for serious breaches involving fraud or dishonesty. The maximum penalties for such offences could vary, but they are generally commensurate with the severity and impact of the non-compliance.