Financial Management and Accountability Act 1997 Determination 2008/55 – Section 32 (Transfer of Functions from the Treasury to the Office of the AUASB)

Overview

The FMA Act Determination 2008/55, enacted to amend Schedules to annual Appropriation Acts, was introduced to facilitate the transfer of appropriations related to specific functions from the Department of the Treasury to the Office of the Auditing and Assurance Standards Board (AUASB). This was necessary following the Office of the AUASB's reclassification as a prescribed agency under the Financial Management and Accountability Act 1997, effective from 1 July 2008. The determination was issued under the authority of the Minister for Finance and Deregulation, who has the power to amend appropriations in connection with the transfer of functions between agencies as stipulated in subsection 32(2) of the FMA Act. This transfer was intended to ensure the appropriate funding of functions related to the formulation and making of auditing and assurance standards for Australian auditors. The enactment of this determination reflects the policy objective of aligning the governance and funding arrangements with the new status of the Office of the AUASB under the FMA Act.

Scope and Application

The FMA Act Determination 2008/55 is a legislative instrument that amends the Schedules of annual Appropriation Acts to facilitate the transfer of appropriations related to specific functions from the Department of the Treasury to the Office of the Auditing and Assurance Standards Board (AUASB). This transfer is a consequence of the Office of the AUASB being prescribed as an Agency under the Financial Management and Accountability Act 1997, which took effect from 1 July 2008. The determination effectively moves the funding for the formulation and making of auditing and assurance standards applicable to Australian auditors, previously managed by the Treasury, to the Office of the AUASB. This change is part of broader governance reforms that moved the Office of the AUASB from the Commonwealth Authorities and Companies Act 1997 to the FMA Act. The determination specifically transfers $1,078,000.00 from the annual Appropriation Act (No. 1) 2008-2009, and was prepared with consultation from both the Treasury and the Office of the AUASB, as required by the Legislative Instruments Act 2003.

Key Provisions

The FMA Act Determination 2008/55, under subsection 32(2) of the Financial Management and Accountability Act 1997, facilitates the transfer of appropriations from the Department of the Treasury to the Office of the Auditing and Assurance Standards Board (Office of the AUASB). Specifically, this determination transfers $1,078,000.00 from the departmental item of the Treasury to that of the Office of the AUASB as per the annual Appropriation Act (No. 1) 2008-2009. This transfer is part of the process to align the governance arrangements of the Office of the AUASB with the FMA Act, following its re-prescription as an Agency under the FMA Act by the Financial Management and Accountability Amendment Regulations 2008 (No. 4). Under this determination, the Office of the AUASB assumes responsibility for the funding of functions related to the formulation and making of auditing and assurance standards applicable to Australian auditors. This includes the transfer of specified appropriation amounts that were previously allocated to the Treasury, now directed towards supporting the Office of the AUASB's new role. The entities involved, namely the Treasury and the Office of the AUASB, were consulted in the preparation of this instrument, in accordance with the Legislative Instruments Act 2003, ensuring a collaborative approach to the transfer process. The obligations imposed by this determination require the Treasury to release the specified appropriation amount to the Office of the AUASB, while the latter must ensure the funds are used in accordance with the functions it now oversees. The determination aims to streamline financial management and accountability by clearly delineating the funding responsibilities between the two entities. It is crucial that both entities adhere to the stipulations of this determination to maintain compliance with the FMA Act and its related regulations. Any breach of the obligations or requirements set forth in this determination may lead to civil or criminal consequences, although specific offences and penalties are not detailed within the text of the explanatory statement. However, under the general provisions of the FMA Act and related legislation, breaches could potentially result in penalties including fines and other sanctions. It is important for the parties involved to ensure strict adherence to the terms of this determination to avoid any legal repercussions.