EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance and Deregulation
FMA Act Determination 2008/17— Section 32 (Transfer of Functions from former DCITA 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 former Department of Communication, Information Technology and the Arts (DCITA) to the Department of Health and Ageing (Health). The appropriation amounts transferred are as follows:
- From annual Appropriation Act (No. 1) 2005-2006 an amount of $845,228.66 of the departmental item for the former DCITA to the departmental item for Health.
- From annual Appropriation Act (No. 1) 2007-2008 an amount of $2,219,007.08 of the departmental item for the former DCITA to the departmental item for Health.
- From annual Appropriation Act (No. 1) 2007-2008 an amount of $20,455,135.27 of the administered item for Outcome 2 for the former DCITA to the administered item for Outcome 15 for Health.
- From annual Appropriation Act (No. 2) 2007-2008 an amount of $18,500,000.00 of the States, ACT, NT and local government item for Outcome 2 for the former DCITA to the States, ACT, NT and local government item for Outcome 15 for Health.
In accordance with the Legislative Instruments Act 2003, DCITA and Health were consulted in the preparation of this instrument.
Revocation of Previous Instrument
This Determination revokes and replaces the FMA Act Determination 2007/08 – Section 32 (Transfer from the Department of Communications, Information Technology and the Arts to the Department of Health and Ageing) made on 10 December 2007.
On 10 December 2007, a delegate of the Minister for Finance and Deregulation made the FMA Act Determination 2007/08 – Section 32 (Transfer from the Department of Communications, Information Technology and the Arts to the Department of Health and Ageing). That determination provided for the amendment of Appropriation Acts, and was expressed to take effect from 3 December 2007, as permitted by s 32(8) of the FMA Act.
The 10 December instrument had the intended effect, of, altering the Appropriation Acts to provide that, appropriation items were transferred between the relevant Agencies.
It has now become desirable to replace the 10 December instrument with instruments which can be properly incorporated into the consolidations of the Appropriation Acts. Some of the figures used in the 10 December instrument were incorrect, and these have been altered.
Savings Provision
So as to preserve the validity of any actions taken under the 10 December instrument a savings provision has been included in the new instrument which preserves the validity of appropriations transferred under the 10 December instrument.
The Australian Government Solicitor was consulted in the making of this instrument.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The FMA Act Determination 2008/17, enacted in 2008, serves to address the need for financial adjustments arising from the administrative changes between government departments, specifically the transfer of functions from the former Department of Communications, Information Technology and the Arts (DCITA) to the Department of Health and Ageing. This legislative instrument was issued under the authority of the Minister for Finance and Deregulation, pursuant to the provisions of the Financial Management and Accountability Act 1997 (FMA Act). The key objective of this determination is to facilitate the accurate reallocation of appropriations in the annual Appropriation Acts to reflect the new departmental arrangements. By correcting prior errors and ensuring the validity of actions taken under the previous instrument, this determination aims to maintain the integrity and efficacy of financial management within the Australian government.
Scope and Application
The FMA Act Determination 2008/17, issued under the authority of the Minister for Finance and Deregulation, serves to amend the Schedules of specified annual Appropriation Acts to facilitate the transfer of appropriations in connection with the transfer of functions between agencies under the Financial Management and Accountability Act 1997. This Determination applies to appropriations being transferred from the former Department of Communication, Information Technology and the Arts (DCITA) to the Department of Health and Ageing (Health), specifically correcting inaccuracies from a previous determination made on 10 December 2007. The affected appropriations include departmental items and administered items for various outcomes, as delineated in the annual Appropriation Acts for the financial years 2005-2006 and 2007-2008. The scope of this Determination is limited to the Commonwealth level, with its jurisdictional reach confined to the amendment of federal Appropriation Acts. The instrument revokes and replaces the earlier FMA Act Determination 2007/08, incorporating a savings provision to preserve the validity of actions taken under the superseded instrument. This legislative instrument is subject to the oversight and consultation processes stipulated in the Legislative Instruments Act 2003, ensuring that the affected departments were duly consulted in its preparation.
Key Provisions
The FMA Act Determination 2008/17 (the "Determination") amends the Schedules of annual Appropriation Acts to facilitate the transfer of appropriations between the former Department of Communications, Information Technology and the Arts (DCITA) and the Department of Health and Ageing (Health), as per subsection 32(2) of the Financial Management and Accountability Act 1997 (FMA Act). The Determination specifically transfers certain amounts from the departmental and administered items of the former DCITA to the corresponding items of Health. These transfers reflect the administrative changes resulting from the abolition and establishment of Departments of State, as per the administrative arrangements order of 3 December 2007. The appropriations being transferred are detailed in the Determination and include amounts from annual Appropriation Acts for the years 2005-2006 and 2007-2008.
The Determination imposes obligations on the relevant parties, including DCITA and Health, to ensure that the transfers of appropriations are accurately reflected in the amended Appropriation Acts. This includes verifying the amounts to be transferred, ensuring that the necessary administrative processes are followed, and coordinating with the Department of Finance and Deregulation. Both DCITA and Health were consulted during the preparation of this instrument, as required by the Legislative Instruments Act 2003. The Secretary of the Department of Finance and Deregulation has been delegated the authority to make such determinations under section 62 of the FMA Act.
Failure to comply with the requirements set out in the Determination could result in legal consequences. While the Determination itself does not specify particular offences or penalties for non-compliance, breaches of the FMA Act or other relevant legislation could result in civil or criminal penalties. The maximum penalties for breaches of the FMA Act may include fines and imprisonment, depending on the nature and severity of the offence. Additionally, the invalidity of actions taken under a revoked instrument can be preserved by the savings provision included in the Determination, ensuring that any appropriations transferred under the previous instrument remain valid.