Financial Management and Accountability Act 1997 Determination 2008/39 - Section 32 (Transfer of Functions from Environment to DCC)

Overview

The FMA Act Determination 2008/39, issued under the authority of the Minister for Finance and Deregulation, amends Schedules of annual Appropriation Acts to facilitate the transfer of appropriations between agencies as stipulated under the Financial Management and Accountability Act 1997. This determination, which transfers specific appropriations from the Department of the Environment, Water, Heritage and the Arts to the Department of Climate Change, responds to the structural changes within governmental departments as reflected in Special Gazette No. S254. The enactment of this determination allows for a smooth transition of budgetary responsibilities in line with the administrative arrangements made by the Governor-General in Council on 3 December 2007. The policy objective underpinning this legislative instrument is to ensure that financial resources are appropriately allocated to support the functions and responsibilities of the newly established Department of Climate Change. Both the Department of the Environment, Water, Heritage and the Arts and the Department of Climate Change were consulted in the preparation of this instrument, in compliance with the Legislative Instruments Act 2003.

Scope and Application

The FMA Act Determination 2008/39 applies to the transfer of appropriations between the Department of the Environment, Water, Heritage and the Arts and the Department of Climate Change, within the framework of the Financial Management and Accountability Act 1997. This determination is a legislative instrument under the authority of the Minister for Finance and Deregulation, with the power to transfer appropriations being delegated to the Secretary of the Department of Finance and Deregulation. The purpose of this determination is to amend the Schedules of the annual Appropriation Acts 2004-2005 and 2007-2008 to reflect the transfer of appropriations resulting from administrative changes. Specifically, it transfers an amount of $5,490,506.24 from the Environment department to the Climate Change department under the 2004-2005 appropriation and $2,823,628.20 under the 2007-2008 appropriation. The Department of the Environment, Water, Heritage and the Arts and the Department of Climate Change were consulted in the preparation of this instrument as required by the Legislative Instruments Act 2003. This determination ensures the financial allocations align with the governmental reorganisation and departmental restructuring.

Key Provisions

The FMA Act Determination 2008/39 (section 32) enables the transfer of specific appropriations from the Department of the Environment, Water, Heritage and the Arts to the Department of Climate Change. This transfer is a result of changes in departmental arrangements following the administrative arrangements order of 3 December 2007, as reflected in Special Gazette No. S254. Section 32(2) of the Financial Management and Accountability Act 1997 provides the legal basis for this transfer, allowing the Finance Minister to amend Schedules to annual Appropriation Acts. The determination specifies the transfer of $5,490,506.24 from the annual Appropriation Act (No. 1) 2004-2005 and $2,823,628.20 from the annual Appropriation Act (No. 1) 2007-2008, ensuring that these funds are correctly allocated to the Department of Climate Change. The obligations imposed by the FMA Act Determination 2008/39 are primarily procedural and require consultation between the relevant departments before the instrument is finalised. As stated, both the Department of the Environment, Water, Heritage and the Arts and the Department of Climate Change were consulted in the preparation of this determination. This ensures that the transfer of appropriations is done in accordance with the legislative requirements and reflects the actual changes in departmental functions and responsibilities. The consultation process also helps to maintain transparency and accountability in the transfer of public funds. Failure to comply with the provisions of the FMA Act Determination 2008/39 could result in significant consequences. Although the specific penalties for breach are not detailed in the Explanatory Statement, the FMA Act generally provides for both civil and criminal penalties for non-compliance. These can include substantial fines, imprisonment for individuals found guilty of serious offences, and other civil remedies. The exact penalties would depend on the nature and severity of the breach, but the Act is designed to enforce compliance to ensure proper financial management and accountability within the government.