EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance and Deregulation
FMA Act Determination 2008/29— Section 32 (Transfer of Functions from the former DEST to ARC)
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 Education, Science and Training (DEST) to the Australian Research Council (ARC). The appropriation amounts transferred are as follows:
- From annual Appropriation Act (No. 1) 2007-2008 an amount of $1,869,000.00 of the departmental item for DEST to the departmental item for ARC.
In accordance with the Legislative Instruments Act 2003, the former DEST and ARC 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 2008/29 was enacted in 2008 to address the administrative changes resulting from the abolition and establishment of Departments of State, as reflected in the Special Gazette No. S254. This legislation amends Schedules to annual Appropriation Acts to transfer appropriations in connection with the transfer of functions between agencies under the Financial Management and Accountability Act 1997. The authority to make this determination is derived from the Minister for Finance and Deregulation, who has delegated this power to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act. This determination facilitates the transfer of appropriations from the former Department of Education, Science and Training to the Australian Research Council, ensuring that the changes in departmental arrangements are properly reflected in the appropriation acts. The policy objective is to maintain financial accountability and transparency in the appropriation process following departmental restructuring.
Scope and Application
The FMA Act Determination 2008/29 applies to the transfer of appropriations from the former Department of Education, Science and Training (DEST) to the Australian Research Council (ARC) as necessitated by administrative arrangements changes in December 2007. This transfer of functions, as outlined in section 32 of the Financial Management and Accountability Act 1997, is intended to reflect the restructuring of departmental arrangements. The determination specifically mandates the transfer of $1,869,000.00 from the annual Appropriation Act (No. 1) 2007-2008, re-allocating it from the former DEST to the ARC's departmental item. This process was conducted in consultation with both the former DEST and ARC, ensuring that the amendments align with the legislative requirements set forth in the Legislative Instruments Act 2003. The determination is a legislative instrument under this Act, thus establishing its formal legal status and applicability within the Commonwealth framework.
Key Provisions
The FMA Act Determination 2008/29, as detailed in the Explanatory Statement, primarily operates under section 32(2) of the Financial Management and Accountability Act 1997 (FMA Act). This section empowers the Minister for Finance and Deregulation to amend the Schedules of annual Appropriation Acts to facilitate the transfer of appropriations in relation to the transfer of functions between agencies under the FMA Act. This power has been delegated to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act. The determination effectively modifies the Schedules in line with its stipulations, ensuring that the appropriations are correctly reflected according to the new departmental arrangements. Specifically, this Determination allows for the transfer of $1,869,000.00 from the former Department of Education, Science and Training (DEST) to the Australian Research Council (ARC) as part of the annual Appropriation Act (No. 1) 2007-2008.
The obligations and requirements imposed by this Determination primarily revolve around the accurate and timely transfer of appropriations as specified. The Secretary of the Department of Finance and Deregulation must ensure that the amendments to the appropriation amounts are made correctly and reflect the new departmental arrangements following the administrative changes. Additionally, the former DEST and the ARC were consulted in the preparation of this instrument, indicating a requirement for stakeholder engagement and consultation to ensure the determination is both accurate and fair. This consultation process is integral to maintaining transparency and accountability in the transfer process.
In terms of potential consequences for breach, the Determination itself does not explicitly state any offences, penalties, or civil/criminal consequences. However, the FMA Act, under which this Determination operates, generally imposes strict financial management and accountability obligations. Failure to comply with the provisions of the FMA Act could result in legal action being taken against the responsible officers or entities. The FMA Act provides for civil and criminal penalties for breaches, including fines and imprisonment. However, the specific penalties would depend on the nature and severity of the breach, as outlined in the FMA Act and other relevant legislation.