EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance and Deregulation
FMA Act Determination 2008/60— Section 32 (Transfer of Functions from Environment to DITRDLG)
Subsection 32(2) of the Financial Management and Accountability Act 1997 (FMA Act) provides that the Minister for Finance and Deregulation (Finance Minister) may, by determination, amend Schedules to annual Appropriation Acts to transfer appropriations in connection with the transfer of a function between agencies under the FMA Act. The determination has the effect of amending the Schedules concerned in accordance with the determination.
This power has been delegated from the Finance Minister to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act.
The purpose of this Determination is to allow a transfer of appropriations from the Department of the Environment, Water, Heritage and the Arts (Environment) to the Department of Infrastructure, Transport, Regional Development and Local Government (DITRDLG). The appropriation amounts transferred are as follows:
- From annual Appropriation Act (No. 1) 2008-2009 an amount of $707,509.00 of the departmental item for Environment to the departmental item for DITRDLG.
In accordance with the Legislative Instruments Act 2003, Environment and DITRDLG were consulted in the preparation of this instrument.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The FMA Act Determination 2008/60 was enacted under the authority of the Financial Management and Accountability Act 1997. This determination was introduced to facilitate the transfer of appropriations between the Department of the Environment, Water, Heritage and the Arts and the Department of Infrastructure, Transport, Regional Development and Local Government, as authorised by subsection 32(2) of the FMA Act. This legislative instrument was created to enable the transfer of a specific amount of $707,509.00 from the annual Appropriation Act (No. 1) 2008-2009, aligning with the shift of certain functions from one department to the other. The enactment of this determination by the Minister for Finance and Deregulation, on behalf of the Parliament, ensures that the transfer of appropriations complies with the provisions of the FMA Act and the Legislative Instruments Act 2003, with both departments consulted during the preparation of this instrument.
Scope and Application
The FMA Act Determination 2008/60 pertains to the transfer of appropriations between government departments, specifically from the Department of the Environment, Water, Heritage and the Arts to the Department of Infrastructure, Transport, Regional Development and Local Government. This determination, issued under the authority of the Minister for Finance and Deregulation, allows for the amendment of annual Appropriation Acts to facilitate the reallocation of specified funds as part of the transfer of functions between these agencies. The determination specifically modifies the Schedules of the Appropriation Acts to reflect the transfer of $707,509.00 from the Environment department to DITRDLG, as outlined in the Annual Appropriation Act (No. 1) 2008-2009. The authority to make such determinations is delegated to the Secretary of the Department of Finance and Deregulation, in line with the provisions of the Financial Management and Accountability Act 1997. Both departments involved were consulted in the preparation of this legislative instrument, ensuring that the transfer is both necessary and properly justified within the framework of the FMA Act and the Legislative Instruments Act 2003.
Key Provisions
The primary operative sections of this Determination, under the Financial Management and Accountability Act 1997 (section 32(2)), facilitate the transfer of appropriations between departments through a ministerial determination. This process is initiated by the Minister for Finance and Deregulation, who has the authority to amend Schedules to annual Appropriation Acts when functions are transferred between agencies. In this instance, the Minister has determined the transfer of $707,509.00 from the annual Appropriation Act (No. 1) 2008-2009, from the Department of the Environment, Water, Heritage and the Arts to the Department of Infrastructure, Transport, Regional Development and Local Government. This amendment is effective as per the terms of the determination.
The obligations imposed by this Determination are largely administrative and procedural. The Minister for Finance and Deregulation, or the Secretary of the Department of Finance and Deregulation as delegated, must ensure that the transfer of appropriations is accurately reflected in the Schedules of the relevant Appropriation Act. Additionally, the Determination mandates consultation with the affected departments, Environment and DITRDLG, prior to the preparation of this instrument, ensuring transparency and stakeholder engagement in the process.
There are no explicit offences or penalties outlined within this Determination for failing to comply with its provisions. However, the authority of the determination is grounded in the Financial Management and Accountability Act 1997, which carries broader legal implications. Non-compliance with the Act's requirements for financial management and accountability could lead to significant consequences, including financial penalties or administrative sanctions, as outlined in other sections of the FMA Act. The focus of this Determination is on the procedural transfer of funds, rather than punitive measures, but it underscores the importance of adhering to legislative requirements for financial transfers.