EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance and Deregulation
FMA Act Determination 2008/32— Section 32 (Transfer of Functions from the former DCITA to DIISR)
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 Communications, Information Technology and the Arts (DCITA) to the Department of Innovation, Industry, Science and Research (DIISR). The appropriation amounts transferred are as follows:
- From annual Appropriation Act (No. 1) 2007-2008 an amount of $555,964.31 of the departmental item for the former DCITA to the departmental item for DIISR.
In accordance with the Legislative Instruments Act 2003, the former DCITA and DIISR 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 2008/32 was enacted in 2008 to facilitate the transfer of appropriations from the former Department of Communications, Information Technology and the Arts (DCITA) to the Department of Innovation, Industry, Science and Research (DIISR). This determination was introduced to address the legislative gap arising from the administrative arrangement changes in 2007, which resulted in the abolition and establishment of Departments of State. The determination was issued by the Minister for Finance and Deregulation under the authority granted by subsection 32(2) of the Financial Management and Accountability Act 1997 (FMA Act). The objective of this instrument is to ensure that the necessary amendments to the annual Appropriation Acts are made to reflect the changes in departmental arrangements, thereby maintaining fiscal accountability and transparency in the allocation of appropriations. The determination was prepared with consultation from the former DCITA and DIISR, as required by the Legislative Instruments Act 2003.
Scope and Application
The FMA Act Determination 2008/32 pertains to the transfer of appropriations from the former Department of Communications, Information Technology and the Arts (DCITA) to the Department of Innovation, Industry, Science and Research (DIISR). It applies to the appropriations outlined in the annual Appropriation Act (No. 1) 2007-2008, specifically transferring an amount of $555,964.31 from the former DCITA to the DIISR. The determination amends the Schedules of the annual Appropriation Acts in accordance with the provisions of the Financial Management and Accountability Act 1997, reflecting the changes in departmental arrangements due to the administrative arrangements order of 3 December 2007. The Minister for Finance and Deregulation, through delegation under section 62 of the FMA Act, has authorised this transfer, which is subject to consultation with the relevant departments as required by the Legislative Instruments Act 2003. This determination is a legislative instrument and operates within the Commonwealth jurisdiction.
Key Provisions
The FMA Act Determination 2008/32 (F2008L02224) pertains specifically to the transfer of appropriations between two government departments, namely the former Department of Communications, Information Technology and the Arts (DCITA) and the Department of Innovation, Industry, Science and Research (DIISR). As outlined in section 32(2) of the Financial Management and Accountability Act 1997 (FMA Act), the determination allows the Minister for Finance and Deregulation to amend Schedules to annual Appropriation Acts to facilitate the transfer of appropriations connected with 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. The transfer of functions stems from administrative changes that necessitated amendments to the annual Appropriation Acts to reflect new departmental arrangements.
The determination transfers a specific appropriation amount of $555,964.31 from the former DCITA to DIISR as detailed in the annual Appropriation Act (No. 1) 2007-2008. This transfer aligns with the changes resulting from the administrative arrangements order of 3 December 2007, which was made by the Governor-General in Council. Both the former DCITA and DIISR were consulted in the preparation of this instrument, ensuring that the transfer of funds is in accordance with the provisions of the Legislative Instruments Act 2003.
The determination imposes certain obligations on the entities involved. The former DCITA and DIISR must ensure that the transfer of funds is accurately reflected in the relevant appropriation schedules. This involves providing necessary documentation and confirming that the transferred funds are correctly allocated to the new departmental item for DIISR. Both departments are also required to comply with the legislative requirements set forth in the FMA Act and the Legislative Instruments Act 2003. Failure to adhere to these obligations could result in discrepancies in the appropriation records and potential financial mismanagement.
Breach of the obligations outlined in the determination may have civil or criminal consequences, depending on the nature and severity of the non-compliance. The FMA Act provides for various offences and penalties for breaches, including fines and imprisonment. However, the specific penalties are not detailed in the explanatory statement for this determination. Nevertheless, the potential for significant financial and administrative repercussions underscores the importance of strict adherence to the provisions of the FMA Act and the determination itself.