EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance and Deregulation
FMA Act Determination 2008/06— Section 32 (Transfer of Functions from Treasury to Finance)
Subsection 32(2) of the Financial Management and Accountability Act 1997 (FMA Act) provides that the Minister for Finance and Deregulation (Finance Minister) may, by determination, amend Schedules to annual Appropriation Acts to transfer appropriations in connection with the transfer of a function between agencies under the FMA Act. The determination has the effect of amending the Schedules concerned in accordance with the determination.
This power has been delegated from the Finance Minister to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act.
Special Gazette No. S254 reflects the administrative arrangements order of
3 December 2007, made by the Governor-General in Council, which resulted in the abolition and establishment of Departments of State. As a result of these changes various annual Appropriation Acts require amendment in order to reflect the changes in departmental arrangements.
The purpose of this Determination is to allow a transfer of appropriations from the Department of the Treasury (Treasury) to the Department of Finance and Deregulation (Finance). The appropriation amounts transferred are as follows:
- From annual Appropriation Act (No. 1) 2007-2008 an amount of $164,000.00 of the departmental item for Treasury to the departmental item for Finance.
Note: Special Gazette No. S254, of 4 December 2007, renamed the Department of Finance and Administration the Department of Finance and Deregulation.
In accordance with the Legislative Instruments Act 2003, Treasury and Finance were consulted in the preparation of this instrument.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The FMA Act Determination 2008/06, enacted in 2008, addresses the need to amend annual Appropriation Acts to reflect changes in departmental arrangements, specifically the transfer of functions from the Department of the Treasury to the Department of Finance and Deregulation. The Financial Management and Accountability Act 1997 (FMA Act) provides the legal framework for this amendment, allowing the Minister for Finance and Deregulation to transfer appropriations through a determination. This authority has been delegated to the Secretary of the Department of Finance and Deregulation. The purpose of this determination is to facilitate the transfer of appropriations, such as the $164,000.00 from the Department of the Treasury to the Department of Finance and Deregulation, as necessitated by the administrative changes outlined in Special Gazette No. S254. The determination also ensures compliance with the Legislative Instruments Act 2003, which mandates consultation with relevant departments in the preparation of such instruments.
Scope and Application
The FMA Act Determination 2008/06 pertains to the transfer of appropriations between the Department of the Treasury and the Department of Finance and Deregulation as a result of administrative changes outlined in Special Gazette No. S254. This determination, issued under the authority of the Minister for Finance and Deregulation, allows for the amendment of Schedules to annual Appropriation Acts to reflect the reallocation of funds due to the restructuring of departments. The transfer involves an amount of $164,000 from the Department of the Treasury to the Department of Finance and Deregulation as stipulated in the annual Appropriation Act (No. 1) 2007-2008. This legislative instrument applies to the Commonwealth of Australia and is implemented to ensure financial accountability and transparency following the reorganisation of government departments.
Key Provisions
The FMA Act Determination 2008/06 (Section 32) enables the transfer of specific appropriations between the Department of the Treasury and the Department of Finance and Deregulation. The key provision of this determination, as outlined in subsection 32(2) of the Financial Management and Accountability Act 1997, allows the Minister for Finance and Deregulation to alter the Schedules of annual Appropriation Acts. This adjustment facilitates the transfer of appropriations when there is a shift in functions between agencies under the FMA Act. In this instance, the determination permits the transfer of $164,000 from the Treasury to the Department of Finance and Deregulation as reflected in the annual Appropriation Act (No. 1) 2007-2008.
This Act imposes specific obligations on the Minister for Finance and Deregulation, including the responsibility to ensure that the amendments to the appropriation schedules are accurately reflected in the annual Appropriation Acts. The Secretary of the Department of Finance and Deregulation, who has been delegated this power under section 62 of the FMA Act, must ensure that the transfer of appropriations is done correctly and transparently. Furthermore, both the Department of the Treasury and the Department of Finance and Deregulation must be consulted in the preparation of this instrument, as mandated by the Legislative Instruments Act 2003.
The Determination also outlines potential consequences for non-compliance with the provisions set forth in the FMA Act. While the determination itself does not explicitly detail specific offences, penalties, or consequences for breach, any failure to comply with the requirements of the FMA Act could result in legal actions under the broader framework of the Act. The FMA Act provides for both civil and criminal penalties for breaches, which can include substantial fines and, in some cases, imprisonment. However, the exact penalties would be determined by the courts based on the specific nature and severity of the breach.