Financial Management and Accountability Act 1997 Determination 2008/02 – Section 32 (Transfer of Functions from the former Environment Department to DCC)

Overview

The FMA Act Determination 2008/02, enacted under the authority of the Minister for Finance and Deregulation, was introduced to address the need for amendments to the annual Appropriation Acts following the administrative changes that occurred as a result of the administrative arrangements order of 3 December 2007. This order led to the abolition and establishment of various Departments of State, necessitating adjustments to the departmental arrangements reflected in the Appropriation Acts. The specific problem this determination aimed to resolve was the transfer of appropriations from the former Department of the Environment and Water Resources to the newly established Department of Climate Change, as outlined in the Financial Management and Accountability Act 1997. This determination facilitates the necessary legislative amendments to accurately reflect these changes, thereby ensuring that financial allocations align with the updated departmental structures.

Scope and Application

The FMA Act Determination 2008/02 applies to the transfer of appropriations from the former Department of the Environment and Water Resources to the newly established Department of Climate Change, reflecting changes in departmental arrangements due to administrative orders. It pertains to the amendment of the Schedules of the Appropriation Act (No. 1) 2007-2008 and Appropriation Act (No. 2) 2007-2008 to reflect these transfers, with specific financial amounts noted for the transition. This Determination is applicable across the Commonwealth of Australia and is a legislative instrument under the Legislative Instruments Act 2003, ensuring that the necessary appropriations are appropriately reallocated to align with the new governmental structure. There are no stated exclusions or exemptions in this Determination, and its scope is strictly limited to the financial transfers specified within the instrument. The application of this Determination is further enabled through subordinate instruments as delegated by the Minister for Finance and Deregulation.

Key Provisions

The primary operative sections of this legislation are those under subsection 32(2) of the Financial Management and Accountability Act 1997 (FMA Act), which empower the Minister for Finance and Deregulation to transfer appropriations between agencies. This specific Determination (F2008L00669) exercises that power to transfer appropriations from the former Department of the Environment and Water Resources to the newly established Department of Climate Change, as reflected in Schedules 1 and 2 of the Appropriation Acts (No. 1 and No. 2) 2007-2008. The exact figures transferred are $19,307,426.86 from the administered item, $19,644,581.81 from the departmental item, and $9,000,000.00 from the other departmental item (equity injections) in the annual Appropriation Act (No. 1) 2007-2008, and $9,000,000.00 from the other departmental item (equity injections) in the annual Appropriation Act (No. 2) 2007-2008. The obligations and requirements imposed by this Act primarily concern the administrative adjustments necessary to reflect the changes in departmental arrangements. The former Department of the Environment and Water Resources and the Department of Climate Change were both consulted during the preparation of this instrument, ensuring that the transition of appropriations is handled in a manner that accommodates the needs and operations of both departments. The Act mandates the amendment of specific appropriation schedules to reflect these changes accurately, ensuring that financial resources are correctly allocated to the new department. Under the FMA Act, breaches of the obligations set out in this Determination could lead to various consequences. While specific offences, penalties, or consequences are not detailed in the Explanatory Statement, the general legislative framework of the FMA Act implies that non-compliance could result in administrative, civil, or criminal penalties. The maximum penalties for breaches of the FMA Act can include substantial fines and, in severe cases, imprisonment, depending on the nature and severity of the breach. It is important for the parties involved to adhere strictly to the provisions of this Determination to avoid any legal repercussions.