Financial Management and Accountability Act 1997 Determination 2008/16 – Section 32 (Transfer of Functions from former DEST to DRET)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the financial management and accountability of Commonwealth entities. The FMA Act Determination 2008/16, issued under the authority of the Minister for Finance and Deregulation, addresses the need to amend annual Appropriation Acts in response to the transfer of functions between government departments. This particular determination was introduced to facilitate the transfer of appropriations from the former Department of Education, Science and Training (DEST) to the Department of Resources, Energy and Tourism (DRET), reflecting the administrative changes outlined in the administrative arrangements order of 3 December 2007. This instrument, which is a legislative instrument under the Legislative Instruments Act 2003, not only corrects certain inaccuracies present in a previous instrument but also ensures the validity of actions taken under the superseded determination. The enacting body for this determination is the Minister for Finance and Deregulation, delegating the authority to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act, with the overarching policy objective of maintaining accurate and effective financial management within the government.

Scope and Application

The FMA Act Determination 2008/16 pertains to the transfer of appropriations between the former Department of Education, Science and Training (DEST) and the Department of Resources, Energy and Tourism (DRET) in accordance with the Financial Management and Accountability Act 1997. The instrument applies to the specific appropriation amounts transferred as part of the administrative changes resulting from the abolition and establishment of Departments of State. This includes the transfer of $500,000.00 from the departmental item of the former DEST to the departmental item of DRET and $5,212,214.61 from the administered item for Outcome 5 of the former DEST to the administered item for Outcome 2 of DRET. The geographic and jurisdictional reach of this Determination is within the Commonwealth of Australia, affecting the budgetary allocations across federal departments. The authority to make this determination is delegated under section 62 of the FMA Act, and the process involved consultation with the former DEST and DRET as well as the Australian Government Solicitor. This Determination revokes and replaces a previous instrument from 7 December 2007, correcting inaccuracies in the appropriation figures and ensuring the validity of actions taken under the earlier instrument through a savings provision.

Key Provisions

Section 32(2) of the Financial Management and Accountability Act 1997 (FMA Act) allows the Minister for Finance and Deregulation to transfer appropriations between agencies by making a determination. This particular determination, FMA Act Determination 2008/16, focuses on the transfer of functions from the former Department of Education, Science and Training (DEST) to the Department of Resources, Energy and Tourism (DRET) as a result of the administrative arrangements order of 3 December 2007. The key provisions of this determination include the transfer of specific appropriation amounts from the former DEST to DRET, as detailed in annual Appropriation Act (No. 1) 2007-2008. The transfers include $500,000.00 from the departmental item of the former DEST to the departmental item of DRET and $5,212,214.61 from the administered item for Outcome 5 of the former DEST to the administered item for Outcome 2 of DRET. The FMA Act Determination 2008/16 imposes obligations on the parties involved, primarily ensuring that the financial resources are correctly allocated following the transfer of functions. This includes the requirement that the former DEST and DRET were consulted during the preparation of this instrument, in accordance with the Legislative Instruments Act 2003. The determination also serves to replace and revoke the previous FMA Act Determination 2007/04, correcting some inaccuracies in the figures used. A savings provision is included to ensure that any actions taken under the previous instrument remain valid, preserving the integrity of financial transactions and arrangements made under it. The determination includes provisions for potential breaches and consequences. While the explanatory statement does not explicitly detail offences or penalties, breaches of the FMA Act or related legislation could result in civil or criminal consequences, including fines and imprisonment. The exact penalties would depend on the nature and severity of the breach, as outlined in the relevant legislation. This determination is a legislative instrument under the Legislative Instruments Act 2003, and it was made with the advice of the Australian Government Solicitor to ensure its compliance with legal requirements.