Financial Management and Accountability Act 1997 Determination 2008/47 – Section 32 (Transfer of Functions from PM&C to DCC)

Overview

The FMA Act Determination 2008/47, enacted in 2008, was introduced to address the need to transfer appropriations between departments as a result of administrative changes outlined in the Administrative Arrangements Order of 3 December 2007. This determination operates under the authority of the Financial Management and Accountability Act 1997, with the power to amend Schedules to annual Appropriation Acts transferred from the Minister for Finance and Deregulation to the Secretary of the Department of Finance and Deregulation. The primary objective of this determination is to facilitate the transfer of appropriations from the Department of the Prime Minister and Cabinet to the Department of Climate Change, specifically transferring $153,842.07 from the annual Appropriation Act (No. 1) 2007-2008. The enactment follows consultations with the Department of the Prime Minister and Cabinet and the Department of Climate Change, in accordance with the Legislative Instruments Act 2003.

Scope and Application

The FMA Act Determination 2008/47 pertains to the transfer of appropriations from the Department of the Prime Minister and Cabinet (PM&C) to the Department of Climate Change (DCC), in line with the administrative changes dictated by the Governor-General's administrative arrangements order of 3 December 2007. This determination is a legislative instrument under the Legislative Instruments Act 2003, designed to amend Schedules of the annual Appropriation Acts to reflect the transfer of functions and appropriations between these departments. Specifically, the determination facilitates the transfer of an appropriation amount of $153,842.07 from PM&C to DCC, as detailed in the annual Appropriation Act (No. 1) 2007-2008. The authority for this transfer is derived from subsection 32(2) of the Financial Management and Accountability Act 1997, which empowers the Minister for Finance and Deregulation to make such amendments through a determination, a power that has been delegated to the Secretary of the Department of Finance and Deregulation. Both PM&C and DCC were consulted during the preparation of this instrument, ensuring the transfer aligns with the legislative requirements and departmental needs.

Key Provisions

The FMA Act Determination 2008/47 (section 32) provides the legal framework for transferring appropriations from one department to another in accordance with the FMA Act. Specifically, the determination allows the transfer of funds from the Department of the Prime Minister and Cabinet (PM&C) to the Department of Climate Change (DCC). This transfer is necessary to reflect the administrative changes that occurred as a result of the 3 December 2007, administrative arrangements order. Section 32(2) of the FMA Act empowers the Minister for Finance and Deregulation to amend the Schedules of annual Appropriation Acts, thereby facilitating the transfer of appropriations in connection with the transfer of functions between agencies. The power to make such determinations has been delegated by the Minister to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act. The determination imposes certain obligations on the PM&C and the DCC. Firstly, it requires the PM&C to transfer the specified appropriation amount of $153,842.07 from the annual Appropriation Act (No. 1) 2007-2008 to the DCC. This transfer ensures that the DCC has the necessary financial resources to carry out its functions effectively. The determination also requires the DCC to accept and account for the transferred funds as part of its departmental appropriations. Both departments must comply with the financial management and accountability provisions of the FMA Act to ensure transparency and proper use of the transferred funds. The FMA Act Determination 2008/47 does not explicitly outline specific offences, penalties, or consequences for breaches of the transfer provisions. However, the FMA Act itself imposes strict financial management and accountability requirements on Commonwealth departments and agencies. Breaches of these requirements could result in civil or criminal penalties under the FMA Act. For instance, if the PM&C fails to transfer the specified funds or the DCC mismanages the transferred funds, this could lead to disciplinary action, financial penalties, or even criminal charges depending on the severity of the breach. The FMA Act provides for fines and imprisonment for serious breaches, underscoring the importance of compliance with the financial management provisions. The preparation of this determination involved consultation with the PM&C and the DCC, as required by the Legislative Instruments Act 2003. This ensures that the departments affected by the transfer have been given an opportunity to provide input and understand the implications of the determination. The determination itself is a legislative instrument under the Legislative Instruments Act 2003, which means it has legal force and effect as if it were part of the FMA Act. This legislative process ensures that the transfer of appropriations is conducted in a transparent and accountable manner, in line with the legislative requirements.