Financial Management and Accountability Act 1997 Determination 2010/11 – Section 32 (Transfer of Functions from DEWHA to DCCEE)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) provides the legislative framework for the transfer of functions between government agencies. In 2010, the FMA Act Determination 2010/11 was enacted to facilitate the transfer of energy efficiency functions from the Department of the Environment, Water, Heritage and the Arts (DEWHA) to the Department of Climate Change and Energy Efficiency (DCCEE). This transfer was a result of a reorganization of government functions, as outlined in the Amendment to the Administrative Arrangements Order dated 8 March 2010. The purpose of this Determination is to amend the Appropriation Acts to reflect the reallocation of funding from DEWHA to DCCEE, ensuring that the financial resources align with the new functional responsibilities. The determination was made under the authority of the Minister for Finance and Deregulation and was subject to consultation with the relevant departments as required by the Legislative Instruments Act 2003.

Scope and Application

The FMA Act Determination 2010/11 pertains to the transfer of functions from the Department of the Environment, Water, Heritage and the Arts (DEWHA) to the Department of Climate Change and Energy Efficiency (DCCEE), specifically relating to energy efficiency functions. This instrument operates under the authority conferred by subsection 32(2) of the Financial Management and Accountability Act 1997, whereby the Minister for Finance and Deregulation has the power to amend Appropriation Acts to reflect the transfer of functions between departments. This authority has been further delegated to the Secretary of the Department of Finance and Deregulation, and subsequently to officials within the Finance Department. The Determination modifies the Appropriation Acts (No. 1) 2008-2009 and (No. 3) 2009-2010 by adjusting departmental items to reflect the reallocation of $5,044,800.37 and $6,000,000 respectively from DEWHA to DCCEE, ensuring that financial allocations align with the structural changes in departmental responsibilities.

Key Provisions

The main operative sections of the FMA Act Determination 2010/11 (subsections 32(2) and 62) provide the authority for the transfer of functions and appropriations from the Department of the Environment, Water, Heritage and the Arts (DEWHA) to the Department of Climate Change and Energy Efficiency (DCCEE). This transfer is specifically outlined in Schedule 1, which pertains to the Appropriation Act (No. 1) 2008-2009, and Schedule 2, which pertains to the Appropriation Act (No. 3) 2009-2010. These schedules detail the financial transfers, reducing the departmental item for DEWHA and increasing it for DCCEE by specified amounts. The purpose of these amendments is to align the financial appropriations with the transfer of energy efficiency functions, as mandated by the Amendment to the Administrative Arrangements Order dated 8 March 2010. The Act imposes specific obligations and requirements on the parties involved, primarily concerning the transparency and consultation process. Under section 53 of the FMA Act, the Secretary of Finance has delegated the power to amend the appropriation acts to officials within the Department of Finance. This delegation ensures that the amendments are made in accordance with the legal framework and that the changes reflect the reorganisation of government functions. Additionally, the requirement to consult DEWHA and DCCEE in the preparation of the instrument ensures that the departments affected by the transfer are aware of and agree to the financial changes. For breach of the provisions of the FMA Act, there are potential civil and criminal consequences. While the specific penalties for breaches are not detailed in the Explanatory Statement, the FMA Act generally provides for penalties that can include fines and imprisonment, depending on the nature and severity of the breach. The maximum penalties would be determined by the specific provisions of the Act and any relevant subsidiary legislation. Compliance with the Act is crucial to avoid these consequences, as it governs the financial management and accountability of government departments and their appropriations.