Financial Management and Accountability Act 1997 Determination 2008/63 – Section 32 (Transfer of Functions from the former DITR to DIISR)

Overview

The FMA Act Determination 2008/63, enacted under the Financial Management and Accountability Act 1997, addresses the need to amend appropriations following the transfer of functions between government agencies. This determination was issued by the Authority of the Minister for Finance and Deregulation and was designed to facilitate the transfer of appropriations from the former Department of Industry, Tourism and Resources (DITR) to the newly established Department of Innovation, Industry, Science and Research (DIISR). The objective of this determination was to ensure that financial allocations are appropriately adjusted in accordance with the administrative changes resulting from the reorganisation of government departments as outlined in the Administrative Arrangements Order of 3 December 2007. This legislative instrument reflects the requirement to update the relevant annual Appropriation Acts to reflect the new departmental arrangements and the associated transfer of appropriations.

Scope and Application

The FMA Act Determination 2008/63 pertains to the transfer of appropriations from the former Department of Industry, Tourism and Resources (DITR) to the Department of Innovation, Industry, Science and Research (DIISR), in line with the administrative changes enacted through the Governor-General in Council's administrative arrangements order of 3 December 2007. This determination facilitates the amendment of the Schedules to annual Appropriation Acts to reflect the transfer of functions between these departments, as permitted by subsection 32(2) of the Financial Management and Accountability Act 1997. The transfer involves specific appropriations amounting to $55,379,460.31 from the 2004-2005 financial year and $95,000 from the 2005-2006 financial year, all pertaining to administered assets and liabilities. The authority to make this determination stems from the delegation of powers from the Minister for Finance and Deregulation to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act. This instrument is subject to the Legislative Instruments Act 2003, and consultation with the former DITR and DIISR was conducted during its preparation.

Key Provisions

The FMA Act Determination 2008/63 (Section 32) facilitates the transfer of appropriations between government departments, specifically from the former Department of Industry, Tourism and Resources (DITR) to the Department of Innovation, Industry, Science and Research (DIISR). This transfer is necessary due to changes in departmental arrangements following the administrative arrangements order of 3 December 2007, as reflected in Special Gazette No. S254. The primary purpose of the determination is to amend the Schedules of the annual Appropriation Acts to reflect these changes accurately. The transfer of funds involves $55,379,460.31 from the annual Appropriation Act (No. 2) 2004-2005 and $95,000.00 from the annual Appropriation Act (No. 4) 2005-2006, both from the administered assets and liabilities item of the former DITR to that of the DIISR. The Act imposes several obligations on the parties involved. Firstly, it mandates that the Finance Minister, or a delegate such as the Secretary of the Department of Finance and Deregulation, must ensure that the appropriation transfers are correctly documented and reflect the changes in departmental responsibilities. This process requires consultation with the former DITR and DIISR, as stipulated by the Legislative Instruments Act 2003, to ensure that the transfer is carried out in accordance with the law and the specific requirements of the affected departments. The Secretary must prepare and issue the determination, ensuring it aligns with the provisions of the FMA Act and other relevant legislative instruments. Failure to comply with the provisions of the FMA Act Determination 2008/63 may result in legal consequences. Although specific penalties are not detailed in the explanatory statement, breaches of the FMA Act generally could lead to civil or criminal penalties, depending on the nature and severity of the breach. Civil penalties could include fines or reimbursement of funds, while criminal penalties might involve imprisonment. The exact penalties would be determined based on the specific circumstances of any non-compliance and would be consistent with the broader legal framework governing financial management within Australian government departments. The Act’s intent is to ensure financial accountability and transparency in the transfer of appropriations between departments.