EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance and Deregulation
FMA Act Determination 2008/67 – Section 32 (Transfer of Functions from Environment to OPH)
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.
Old Parliament House (OPH) was prescribed as an Agency under the FMA Act by Financial Management and Accountability Amendment Regulations 2008 (No. 2). OPH was established as an Executive Agency under section 65 of the Public Service Act 1999, published in the Commonwealth Gazette (Gazette GN S 95, published 1 May 2008). OPH became a prescribed Agency under the FMA Act from 1 July 2008.
The purpose of this Determination is to allow a transfer of appropriations for the funding of functions related to OPH, from the Department of the Environment, Water, Heritage and the Arts (Environment) to OPH. The appropriation amounts transferred are as follows:
- From annual Appropriation Act (No. 1) 2004-2005 an amount of $1,319,604.00 of the departmental item for Environment to the departmental item for OPH and an amount of $3,469,407.46 of the administered item for Outcome 4 for Environment to the administered item for Outcome 1 for OPH;
- From annual Appropriation Act (No. 1) 2005-2006 an amount of $586,228.40 of the departmental item for Environment to the departmental item for OPH and an amount of $2,222,095.93 of the administered item for Outcome 4 for Environment to the administered item for Outcome 1 for OPH;
- From annual Appropriation Act (No. 1) 2006-2007 an amount of $973,780.00 of the administered item for Outcome 4 for Environment to the administered item for Outcome 1 for OPH;
- From annual Appropriation Act (No. 2) 2006-2007 an amount of $3,333,226.11 of the administered assets and liabilities item for Environment to the administered assets and liabilities item for OPH;
- From annual Appropriation Act (No. 2) 2007-2008 an amount of $102,000.00 of the other departmental item (Equity Injections) for Environment to the other departmental item (Equity Injections) for OPH and an amount of $6,233,597.34 of the administered assets and liabilities item for Environment to the administered assets and liabilities item for OPH;
- From annual Appropriation Act (No. 1) 2008-2009 an amount of $907,023.00 of the departmental item for Environment to the departmental item for OPH and an amount of $2,492,000.00 of the administered item for Outcome 4 for Environment to the administered item for Outcome 1 for OPH; and
- From annual Appropriation Act (No. 2) 2008-2009 an amount of $104,000.00 of the other departmental item (Equity Injections) for Environment to the other departmental item (Equity Injections) for OPH and an amount of $2,210,000.00 of the administered assets and liabilities item for Environment to the administered assets and liabilities item for OPH.
In accordance with the Legislative Instruments Act 2003, Environment and OPH 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 2008/67, enacted under the authority of the Minister for Finance and Deregulation, addresses the need to facilitate the transfer of financial appropriations between agencies as prescribed by the Financial Management and Accountability Act 1997. This determination specifically allows for the reallocation of appropriations from the Department of the Environment, Water, Heritage and the Arts to Old Parliament House (OPH) following the latter's establishment as a prescribed agency under the FMA Act. The determination aims to ensure a seamless financial transition as OPH assumes certain functions previously managed by the Environment department. This was achieved through a series of amendments to the Schedules of several annual Appropriation Acts, as per the delegation of authority from the Minister to the Secretary of the Department of Finance and Deregulation. The policy objective is to streamline financial management and accountability by appropriately adjusting appropriations to reflect the new agency responsibilities.
Scope and Application
The FMA Act Determination 2008/67, issued under the authority of the Minister for Finance and Deregulation, facilitates the transfer of appropriations from the Department of the Environment, Water, Heritage and the Arts (Environment) to Old Parliament House (OPH) to accommodate the transfer of functions from Environment to OPH as prescribed under the Financial Management and Accountability Act 1997 (FMA Act). This transfer is effective for specific appropriations listed in various annual Appropriation Acts, adjusting the funding allocation for certain departmental and administered items between Environment and OPH. The power to make such determinations has been delegated from the Finance Minister to the Secretary of the Department of Finance and Deregulation, ensuring that the transfer aligns with the financial management framework established under the FMA Act. Both Environment and OPH were consulted in the preparation of this determination, in compliance with the Legislative Instruments Act 2003, underscoring the collaborative approach in managing financial resources across government agencies.
Key Provisions
The FMA Act Determination 2008/67 (section 32(2)) allows for the transfer of appropriations between agencies under the FMA Act through amendments to the Schedules of annual Appropriation Acts. This power was exercised to transfer appropriations for functions related to Old Parliament House (OPH) from the Department of the Environment, Water, Heritage and the Arts to OPH itself. These appropriations were transferred from various annual Appropriation Acts from 2004-2005 to 2008-2009, with specific amounts detailed in the determination. The Secretary of the Department of Finance and Deregulation, who has been delegated this authority, has implemented these changes to ensure proper funding allocation in line with the transfer of functions.
The FMA Act Determination 2008/67 imposes specific obligations on both the Department of the Environment, Water, Heritage and the Arts and OPH. The Department of the Environment is required to cease the allocation of the specified appropriations and ensure that these funds are redirected to OPH. OPH, in turn, must be prepared to receive these appropriations and account for their use in accordance with the FMA Act. Both entities are also required to maintain proper records of these transfers and ensure compliance with any additional administrative requirements imposed by the FMA Act.
Failure to comply with the provisions of the FMA Act Determination 2008/67 could result in various consequences. Under the FMA Act, breaches of its provisions can lead to both civil and criminal penalties. Civil penalties may include fines up to a maximum of $10,000 per offence, while criminal penalties can include fines up to $100,000 and/or imprisonment for up to two years per offence. These penalties underscore the importance of adhering to the terms set out in the determination to avoid legal repercussions.