EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance and Deregulation
FMA Act Determination 2008/65— Section 32 (Transfer of Functions from the former DCITA to DBCDE)
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.
Special Gazette No. S254 reflects the administrative arrangements order of
3 December 2007, made by the Governor-General in Council, which resulted in the abolition and establishment of Departments of State. As a result of these changes various annual Appropriation Acts require amendment in order to reflect the changes in departmental arrangements.
The purpose of this Determination is to allow a transfer of appropriations from the former Department of Communications, Information Technology and the Arts (DCITA) to the Department of Broadband, Communications and the Digital Economy (DBCDE). The appropriation amounts transferred are as follows:
- From annual Appropriation Act (No. 1) 2007-2008 an amount of $154,241.92 of the departmental item for the former DCITA to the departmental item for DBCDE; and
- From annual Appropriation Act (No. 1) 2007-2008 an amount of $6,291,879.31 of the administered item for Outcome 3 for the former DCITA to the administered item for Outcome 1 for DBCDE.
In accordance with the Legislative Instruments Act 2003, the former DCITA and DBCDE 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 2008/65 was enacted in 2008 and provides a mechanism for the transfer of appropriations from the former Department of Communications, Information Technology and the Arts (DCITA) to the Department of Broadband, Communications and the Digital Economy (DBCDE) under the Financial Management and Accountability Act 1997 (FMA Act). This determination was introduced to address the need to reflect the changes in departmental arrangements as a result of administrative arrangements orders made by the Governor-General in Council. The determination was made by the Minister for Finance and Deregulation, delegating the authority to the Secretary of the Department of Finance and Deregulation, in accordance with section 62 of the FMA Act. The policy objective of this determination is to ensure that the transfer of functions and appropriations between departments is accurately and efficiently reflected in the annual Appropriation Acts.
The Department of Finance and Deregulation, having been delegated this authority by the Minister for Finance and Deregulation, issued this determination to amend the relevant Schedules of the annual Appropriation Acts. The determination specifies the transfer of specific appropriation amounts from the former DCITA to the DBCDE, facilitating the re-allocation of funds to align with the new departmental structure. This was achieved in consultation with the former DCITA and the DBCDE, as required by the Legislative Instruments Act 2003. The determination is recognised as a legislative instrument under the same Act.
Scope and Application
The FMA Act Determination 2008/65 pertains to the transfer of appropriations from the former Department of Communications, Information Technology and the Arts (DCITA) to the Department of Broadband, Communications and the Digital Economy (DBCDE) as a result of administrative arrangements changes under the FMA Act. This legislative instrument applies specifically to the financial transfers necessitated by the establishment and abolition of these departments, affecting their budgetary allocations. The transfer of appropriations, amounting to $154,241.92 for the departmental item and $6,291,879.31 for the administered item for Outcome 3, is governed by the Financial Management and Accountability Act 1997. The determination modifies the Schedules of the annual Appropriation Acts (No. 1) 2007-2008 to reflect the new departmental structure. The Minister for Finance and Deregulation, through delegation to the Secretary of the Department of Finance and Deregulation, has the authority to enact this amendment, ensuring the budgetary allocations align with the current departmental functions. The transfer was undertaken after consultation with both the former DCITA and DBCDE, as mandated by the Legislative Instruments Act 2003.
Key Provisions
The FMA Act Determination 2008/65 (subsection 32(2)) authorises the transfer of appropriations from the former Department of Communications, Information Technology and the Arts (DCITA) to the Department of Broadband, Communications and the Digital Economy (DBCDE). This transfer is necessitated by administrative changes that have abolished and established various departments, as outlined in the Special Gazette No. S254. The specific appropriations being transferred include $154,241.92 from the departmental item of the former DCITA and $6,291,879.31 from the administered item for Outcome 3 of the former DCITA, both to the departmental item and administered item of the DBCDE respectively.
Under this Determination, the obligations imposed on the relevant departments include ensuring that the financial management and accountability provisions of the FMA Act are adhered to during the transfer process. Both the former DCITA and DBCDE were consulted in the preparation of this instrument, in accordance with the Legislative Instruments Act 2003. This consultation requirement underscores the necessity for both departments to be aware of and agree to the financial transfers, ensuring transparency and accountability in the administrative changes.
Failure to comply with the provisions set out in this Determination could result in various consequences. Under the FMA Act, non-compliance may lead to financial mismanagement, which could incur civil or criminal penalties as stipulated in the Act. The exact nature and severity of these penalties would depend on the specific circumstances of the breach, but they may include fines or other sanctions as determined by the relevant authorities. It is essential for both departments to ensure that all transfers are conducted in accordance with the legal requirements to avoid any potential repercussions.