Financial Management and Accountability Act 1997 Determination 2008/34 – Section 32 (Transfer of Functions from PM&C to FaHCSIA)

Overview

The FMA Act Determination 2008/34 was enacted in 2008 by the Minister for Finance and Deregulation under the Financial Management and Accountability Act 1997. This instrument was introduced to address the need for adjustments in appropriations due to the transfer of functions between agencies, specifically from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to the Department of the Prime Minister and Cabinet (PM&C). The determination was necessitated by the administrative arrangements order of 3 December 2007, which resulted in the abolition and establishment of various Departments of State, thereby requiring amendments to the annual Appropriation Acts to reflect these changes. The policy objective of this determination is to facilitate the necessary transfer of appropriations between the affected departments to ensure alignment with the updated departmental arrangements. This legislative instrument adheres to the provisions of the Legislative Instruments Act 2003, which mandates consultation with the relevant departments during its preparation.

Scope and Application

The FMA Act Determination 2008/34 applies to the transfer of appropriations between the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and the Department of the Prime Minister and Cabinet (PM&C) as a result of administrative arrangements changes specified by the Governor-General in Council. The determination amends the annual Appropriation Acts to reflect the transfer of appropriations, which is an administrative action under the Financial Management and Accountability Act 1997. This power is exercised by the Secretary of the Department of Finance and Deregulation, delegated by the Minister for Finance and Deregulation. The determination specifically transfers $30,000.00 from the annual Appropriation Act (No. 1) 2007-2008, illustrating the financial implications of the administrative changes. The scope of the determination is limited to the specified appropriation transfer and does not extend to other financial or administrative functions outside of this context. The determination is subject to consultation with PM&C and FaHCSIA as required by the Legislative Instruments Act 2003.

Key Provisions

The FMA Act Determination 2008/34 (subsection 32(2)) enables the Minister for Finance and Deregulation to amend Schedules to annual Appropriation Acts to facilitate the transfer of appropriations between agencies under the FMA Act. This specific determination seeks to transfer appropriations from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to the Department of the Prime Minister and Cabinet (PM&C). The transfer involves an amount of $30,000.00 from the annual Appropriation Act (No. 1) 2007-2008. This amendment reflects the administrative changes resulting from the administrative arrangements order of 3 December 2007, as detailed in Special Gazette No. S254, which involved the abolition and establishment of various Departments of State. The obligations imposed by this determination primarily rest on the administrative and financial management processes within both the PM&C and FaHCSIA. Both departments are required to ensure that the transfer of appropriations is accurately reflected in their respective financial records and reporting. Furthermore, these departments must comply with the legislative framework governing the financial management and accountability of the Commonwealth, particularly the FMA Act. It is also stipulated that PM&C and FaHCSIA were consulted in the preparation of this instrument, underscoring the importance of stakeholder engagement in legislative processes. Under the FMA Act, breaches of the provisions governing the transfer of appropriations could lead to both civil and criminal consequences. Civil penalties may be imposed for non-compliance, which could include fines and other corrective measures. While the specific maximum penalties are not detailed in the explanatory statement, the FMA Act generally provides for substantial penalties to ensure adherence to financial management standards. Additionally, any breaches that constitute criminal offences could result in legal action against individuals or entities responsible for the non-compliance, potentially leading to imprisonment or significant fines, depending on the severity of the offence. These consequences underscore the importance of strict adherence to the financial management and accountability requirements outlined in the FMA Act.