Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted to address the need for a clear and efficient framework for the management and accountability of financial resources within Australian government agencies. This Act empowers the Minister for Finance and Deregulation to amend appropriation acts in relation to the transfer of functions between agencies. Enacted by the Australian Parliament, the FMA Act aims to ensure that government agencies are transparent and accountable in their financial management, thereby promoting public trust and the effective use of public funds. The 2010 Determination under Section 32 of the FMA Act transferred specific appropriation amounts from the Department of Climate Change and Energy Efficiency (DCCEE) to the Department of Resources, Energy and Tourism (DRET), reflecting changes in administrative arrangements and the reallocation of government functions. This amendment was intended to streamline financial allocations in line with the revised responsibilities of these departments.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2010/19 pertains to the transfer of functions and associated appropriations between two Australian government departments, specifically from the Department of Climate Change and Energy Efficiency (DCCEE) to the Department of Resources, Energy and Tourism (DRET). This determination applies to the financial operations and budgetary allocations of these departments, as it modifies the Appropriation Acts for the years 2008-2009 and 2010-2011. The instrument transfers both departmental and administered items, resulting in a reduction in DCCEE's budgetary allocations and an increase in those of DRET. This transfer arises from the administrative changes outlined in the Administrative Arrangements Order on 14 September 2010, affecting the Smart Grid, Smart Cities Program (National Energy Efficiency Initiative). Notably, this determination is enacted under the authority of the Financial Management and Accountability Act 1997, with relevant powers delegated by the Minister for Finance and Deregulation, and administered through the Department of Finance and Deregulation.
Key Provisions
The main operative sections of the Financial Management and Accountability Act 1997 Determination 2010/19 (section 32) involve the transfer of specific amounts from the Department of Climate Change and Energy Efficiency (DCCEE) to the Department of Resources, Energy and Tourism (DRET). Schedule 1 transfers $192,040 from the departmental item in the Appropriation Act (No. 1) 2008-2009. Schedule 2 transfers $56,459,000 from the administered item for Outcome 1 and $819,226 from the departmental item in the Appropriation Act (No. 1) 2010-2011. These transfers arise from the transfer of the Smart Grid, Smart Cities Program (National Energy Efficiency Initiative) due to changes in the Administrative Arrangements Order on 14 September 2010.
The Act imposes obligations on the relevant departments to ensure the accurate and timely transfer of the specified funds. The DCCEE is required to relinquish the designated amounts as per the schedules, while the DRET must receive and account for these funds accurately in their respective Appropriation Acts. Furthermore, both departments are required to ensure that all changes are properly documented and reflected in their financial records. This includes updating their budgetary allocations and reporting any discrepancies to the appropriate authorities.
In terms of penalties and consequences for breaches, the Act itself does not explicitly state penalties for failure to comply with the transfer provisions. However, any non-compliance with the Financial Management and Accountability Act 1997 or the Appropriation Acts could lead to administrative or legal consequences under other provisions of the Act. These may include investigations by the Australian National Audit Office or legal action for mismanagement of public funds. Additionally, officials involved in the transfer process may face disciplinary actions if they are found to be negligent or fail to adhere to the requirements set out in the Act.