Financial Management and Accountability Act 1997 Determination 2010/18 – Section 32 (Transfer of Functions from AGD to DORA)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted by the Parliament of Australia to establish a framework for financial management and accountability within the Commonwealth public sector. This Act was introduced to address the need for clear and transparent financial governance across government departments and agencies, ensuring that public funds are managed responsibly and accountably. Under the authority granted by the FMA Act, the Minister for Finance and Deregulation has the power to determine amendments to Appropriation Acts in relation to the transfer of functions between agencies. This includes the delegation of this power to the Secretary of the Department of Finance and Deregulation and, subsequently, to certain officials within the Finance department. The policy objective is to facilitate the efficient and effective reallocation of resources to meet changing government priorities and to ensure that financial accountability is maintained during such transitions.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2010/18 – Section 32 (Transfer of Functions from AGD to DORA) applies to the appropriation of funds between two government departments, specifically transferring certain financial allocations from the Attorney-General’s Department (AGD) to the Department of Regional Australia, Regional Development and Local Government (DORA). The transfer, authorised under subsection 32(2) of the FMA Act, includes both departmental and administered items as specified in the Appropriation Acts (No. 1 and 2) for the fiscal years 2010-2011. The instrument effects a reallocation of $5,000,000.00 from the departmental item, $69,000,000.00 from Outcome 2 administered item, and $10,000,000.00 from the Administered Assets and Liabilities item from AGD to DORA. The jurisdictional reach of this determination is limited to the Commonwealth of Australia, with its primary application in the federal budgetary process, ensuring alignment with the administrative arrangements as per the Administrative Arrangements Order of 14 September 2010. This instrument does not specify exclusions or exemptions but operates within the parameters set by the FMA Act and its subordinate instruments.

Key Provisions

The main operative sections of the instrument, F2010L02705, pertain to the transfer of funds from the Attorney-General’s Department (AGD) to the Department of Regional Australia, Regional Development and Local Government (DORA) as outlined in Schedule 1 and Schedule 2. Specifically, Section 1 of Schedule 1 transfers $5,000,000.00 from the departmental item of AGD to the departmental item of DORA, and $69,000,000.00 from the administered item of Outcome 2 of AGD to Outcome 2 of DORA. Section 2 of Schedule 1 reduces the departmental and administered items in the Appropriation Act (No. 1) 2010-2011 for AGD and increases the corresponding items for DORA. Section 1 of Schedule 2 transfers $10,000,000.00 from the Administered Assets and Liabilities item of AGD to DORA, reducing the item in the Appropriation Act (No. 2) 2010-2011 for AGD and establishing a corresponding item for DORA. The obligations and requirements imposed by the Act require the transfer of specified amounts from AGD to DORA as a result of the restructuring and renaming of departments under the Administrative Arrangements Order (AAO) made on 14 September 2010. The Finance Minister, under the authority of the Financial Management and Accountability Act 1997, has determined the amendment of the Appropriation Acts to reflect this transfer. The Secretary of the Department of Finance and Deregulation has delegated this power to certain officials within the Department of Finance, who have exercised it to prepare this instrument. The Department of Infrastructure and Transport and the Department of the Prime Minister and Cabinet were consulted in the preparation of this instrument, as required by the Legislative Instruments Act 2003. In terms of legal consequences, there are no specific offences, penalties, or civil/criminal consequences outlined in this instrument for breach of the transfer provisions. However, any failure to comply with the requirements of the Financial Management and Accountability Act 1997 or the Legislative Instruments Act 2003 could potentially lead to broader administrative or legal repercussions. The Financial Management and Accountability Act 1997 sets out various financial management requirements and standards that must be adhered to, and non-compliance with these could result in administrative actions, fines, or other penalties as stipulated within the Act itself. The Legislative Instruments Act 2003 provides the framework for the creation and operation of legislative instruments, and breaches of its provisions could also lead to legal consequences as per the broader legislative framework.