Financial Management and Accountability Act 1997 Determination 2008/56 - Section 32 (Transfer of Functions from the Treasury to the Office of the AASB)

Overview

The FMA Act Determination 2008/56, issued under the authority of the Minister for Finance and Deregulation, addresses the transfer of appropriations associated with the functions related to the formulation and making of accounting standards, applicable to Australian entities, from the Department of the Treasury to the Office of the Australian Accounting Standards Board (Office of the AASB). Enacted in 2008, the Financial Management and Accountability Act 1997 (FMA Act) allows the Minister for Finance and Deregulation to amend annual Appropriation Acts to facilitate the transfer of appropriations between agencies. This particular determination is in response to the Office of the AASB becoming a prescribed Agency under the FMA Act from 1 July 2008, following amendments to its governance arrangements through the Governance Review Implementation (AASB and AUASB) Act 2008. The policy objective of this determination is to ensure a smooth transition of funding responsibilities, with an appropriation of $1,225,000 transferred from the Department of the Treasury to the Office of the AASB for the 2008-2009 financial year.

Scope and Application

The FMA Act Determination 2008/56 applies to the transfer of appropriations associated with the funding of specific functions from the Department of the Treasury to the Office of the Australian Accounting Standards Board (Office of the AASB). This legislation is a legislative instrument made under the Legislative Instruments Act 2003, which authorises the Secretary of the Department of Finance and Deregulation, on behalf of the Finance Minister, to transfer appropriations related to the formulation and making of accounting standards applicable to Australian entities. This transfer reflects the changes in governance arrangements for the Office of the AASB, which became a prescribed Agency under the FMA Act from 1 July 2008. The Determination specifically involves the transfer of $1,225,000.00 from the departmental item for the Treasury to the departmental item for the Office of the AASB as per the annual Appropriation Act (No. 1) 2008-2009. The geographic and jurisdictional reach of this Determination is Commonwealth-wide, and it does not contain any stated exclusions, exemptions, or thresholds. The transfer of functions and appropriations between the agencies under the FMA Act can also be extended or restricted through subordinate instruments.

Key Provisions

The FMA Act Determination 2008/56 (subsection 32(2)) allows for the transfer of appropriations related to functions between agencies under the Financial Management and Accountability Act 1997 (FMA Act). Specifically, this determination facilitates the transfer of funds from the Department of the Treasury to the Office of the Australian Accounting Standards Board (Office of the AASB) to support the formulation and making of accounting standards applicable to Australian entities. The amount specified for transfer from the annual Appropriation Act (No. 1) 2008-2009 is $1,225,000.00, which moves from the departmental item for the Treasury to the departmental item for the Office of the AASB. This Act imposes certain obligations on the parties involved, primarily ensuring that the transfer of appropriations is conducted in accordance with the provisions set out in the determination. Both the Treasury and the Office of the AASB were consulted during the preparation of this instrument, as required by the Legislative Instruments Act 2003, ensuring that the changes are made with due consideration and agreement from the relevant parties. The determination itself is a legislative instrument under the Legislative Instruments Act 2003, which provides the legal framework for its creation and enforcement. In terms of compliance, the determination outlines the specific appropriation amounts to be transferred and mandates that these transfers must be made as per the outlined provisions. This ensures that the financial resources are appropriately allocated to support the new governance arrangements of the Office of the AASB, which became a prescribed Agency under the FMA Act from 1 July 2008. Failure to adhere to the requirements stipulated in the determination could potentially result in legal consequences, although no specific penalties are detailed within the text of this determination. Although the determination does not specify particular offences or penalties for non-compliance, breaches of the FMA Act or associated regulations could lead to civil or criminal liabilities. The FMA Act itself provides for various penalties, including fines and imprisonment, for breaches of its provisions. Additionally, the Legislative Instruments Act 2003 provides mechanisms for the review and enforcement of legislative instruments, which could result in further sanctions for non-compliance with the determination. Therefore, adherence to the provisions of the determination is crucial to avoid any potential legal repercussions.