Financial Management and Accountability Act 1997 Determination 2010/17 – Section 32 (Transfer of Functions from the former DITRDLG to DORA)

Overview

The Financial Management and Accountability Act 1997 Determination 2010/17, made on 1 October 2010, addresses the financial implications of the restructuring of ministerial portfolios and renaming of departments that occurred on 14 September 2010. Enacted by the Parliament of Australia, the Act facilitates the amendment of Appropriation Acts in response to transfers of functions between agencies. The determination specifically transfers budgetary allocations from the former Department of Infrastructure, Transport, Regional Development and Local Government (DITRDLG) to the newly established Department of Regional Australia, Regional Development and Local Government (DORA). This legislative instrument ensures that financial resources are appropriately reallocated to reflect the new departmental structure, thereby maintaining fiscal integrity and facilitating the operational needs of the newly formed department.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2010/17 pertains to the transfer of financial functions from the former Department of Infrastructure, Transport, Regional Development and Local Government (DITRDLG) to the Department of Regional Australia, Regional Development and Local Government (DORA). Specifically, the Determination transfers budgetary allocations from DITRDLG to DORA, thereby adjusting the departmental and administered items within the Appropriation Acts (No. 1 and No. 2) for the financial years 2010-2011. This involves reallocating $21 million from the departmental item, $144.2 million from an administered item of Outcome 3, and $209.8 million from the Payments to States, ACT, NT, and local government item. This instrument applies to the Finance Minister, who has the authority to amend appropriation acts under Section 32(2) of the FMA Act, and to the relevant departments affected by the reallocation of funds. The jurisdictional reach of this Act is national, as it pertains to Commonwealth departments and their financial management within the Australian federal system. There are no stated exclusions or exemptions within the scope of this Determination, and no thresholds are specified. The application of this Act may be extended or restricted through subordinate instruments, but no such extensions or restrictions are noted in the provided text.

Key Provisions

The main operative sections of this legislation are those that facilitate the transfer of funds and functions between the former Department of Infrastructure, Transport, Regional Development and Local Government (DITRDLG) and the newly established Department of Regional Australia, Regional Development and Local Government (DORA). Specifically, Schedule 1 of the Instrument amends the Appropriation Act (No. 1) 2010-2011, transferring $21,000,000.00 from the departmental item of DITRDLG to DORA, and $144,215,595.79 from the administered item of Outcome 3 to Outcome 1 for DORA. Similarly, Schedule 2 of the Instrument modifies the Appropriation Act (No. 2) 2010-2011 by transferring $209,816,682.30 from the Payments to States, ACT, NT and local government item of DITRDLG to DORA. This legislation imposes specific obligations and requirements on the parties involved. The Minister for Finance and Deregulation, under section 32(2) of the Financial Management and Accountability Act 1997 (FMA Act), is tasked with determining the transfer of functions and associated funds between the two departments. This responsibility has been delegated to the Secretary of the Department of Finance and Deregulation, who in turn has delegated this power to certain officials within the Finance Department. These officials must ensure that the amendments to the Appropriation Acts are correctly and effectively implemented to reflect the new departmental structure. Failure to comply with the provisions of this legislation could lead to various civil or criminal consequences. However, the specific penalties for breach are not detailed in the explanatory statement. It is understood that breaches of the FMA Act can result in fines and other civil penalties, and in some cases, criminal penalties, but these are not explicitly stated in the provided text. The exact nature and severity of these penalties would typically be outlined in the FMA Act itself. Overall, the legislation effectively facilitates the transfer of both financial resources and administrative functions between DITRDLG and DORA, in line with the ministerial portfolio restructuring on 14 September 2010. The involvement of multiple levels of officials within the Finance Department ensures that the transfer is executed with due diligence and in accordance with the law. The new structure allows for a more streamlined and efficient allocation of resources within the government, aligning departmental responsibilities with the updated ministerial portfolios.