EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance and Deregulation
FMA Act Determination 2008/09— Section 32 (Transfer of Functions from DITRDLG to Health)
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 Infrastructure, Transport, Regional Development and Local Government (DITRDLG) to the Department of Health and Ageing (Health). The appropriation amounts transferred are as follows:
- From annual Appropriation Act (No. 1) 2007-2008 an amount of $1,988,000.00 of the administered item for Outcome 2 for DITRDLG to the administered item for Outcome 6 for Health.
In accordance with the Legislative Instruments Act 2003, DITRDLG and Health 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 2008/09, enacted under the Financial Management and Accountability Act 1997, addresses the need to adjust appropriations following the restructuring of government departments. Specifically, this determination facilitates the transfer of functions from the Department of Infrastructure, Transport, Regional Development and Local Government (DITRDLG) to the Department of Health and Ageing (Health), in line with administrative changes implemented by the Governor-General in Council on 3 December 2007. The determination allows for the amendment of the annual Appropriation Acts to reflect these changes, transferring $1,988,000.00 from DITRDLG to Health for Outcome 6, thereby ensuring the appropriate allocation of funds. The determination was made by the Secretary of the Department of Finance and Deregulation, following delegation from the Minister for Finance and Deregulation, and involved consultation with both DITRDLG and Health as required by the Legislative Instruments Act 2003.
Scope and Application
The FMA Act Determination 2008/09, issued under the authority of the Minister for Finance and Deregulation, pertains to the transfer of appropriations between the Department of Infrastructure, Transport, Regional Development and Local Government and the Department of Health and Ageing. This determination is enacted to facilitate the transfer of specific financial allocations as required by changes in departmental arrangements, as reflected in the annual Appropriation Acts. The power to make such amendments has been delegated from the Minister to the Secretary of the Department of Finance and Deregulation, in line with the provisions of the Financial Management and Accountability Act 1997. This transfer specifically involves an amount of $1,988,000.00 from the administered item for Outcome 2 for DITRDLG to the administered item for Outcome 6 for Health, as detailed in annual Appropriation Act (No. 1) 2007-2008. The departments involved were consulted during the preparation of this instrument, ensuring compliance with the requirements of the Legislative Instruments Act 2003. This Determination is classified as a legislative instrument under the same Act.
Key Provisions
The FMA Act Determination 2008/09 (section 32) primarily facilitates the transfer of appropriations from the Department of Infrastructure, Transport, Regional Development and Local Government (DITRDLG) to the Department of Health and Ageing (Health). This transfer is a consequence of the administrative changes resulting from the abolition and establishment of various Departments of State, as reflected in Special Gazette No. S254 and the administrative arrangements order of 3 December 2007. Specifically, section 32(2) of the Financial Management and Accountability Act 1997 (FMA Act) empowers the Minister for Finance and Deregulation to amend the Schedules of annual Appropriation Acts to accommodate the transfer of functions between agencies. This power has been delegated to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act. As such, the Determination amends the Schedules of the annual Appropriation Act (No. 1) 2007-2008 to reflect the transfer of an amount of $1,988,000.00 from DITRDLG to Health.
The Determination imposes obligations on both DITRDLG and Health to ensure that the transfer of appropriations is accurately reflected in the financial records. The affected departments must collaborate to ensure the financial data is correctly updated in the Schedules of the annual Appropriation Act, aligning with the changes in departmental arrangements. Both departments were consulted in the preparation of this instrument, as required by the Legislative Instruments Act 2003, to ensure that the transfer is implemented smoothly and accurately.
Breaching the provisions of the FMA Act Determination 2008/09 could result in civil or criminal consequences, although specific penalties are not detailed in the Determination. The determination is a legislative instrument under the Legislative Instruments Act 2003, and non-compliance with such instruments can lead to various legal repercussions depending on the nature and severity of the breach. The Act itself, the FMA Act, outlines a framework for financial management and accountability within the public sector, and failure to adhere to its provisions could lead to further scrutiny or legal action. The exact penalties would depend on the specific breaches and could involve fines or other sanctions as prescribed by the relevant legislation.