Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted to ensure that the Commonwealth's financial resources are managed in an accountable and transparent manner, with a particular focus on ensuring that public funds are utilised effectively and efficiently. The Act provides the legislative framework for the financial management and accountability of Commonwealth agencies and the transfer of functions between them. The problem or gap this Act was introduced to address was the need for a comprehensive and cohesive approach to financial management and accountability across the Commonwealth public sector. Enacted by the Parliament of Australia, the FMA Act sets out the responsibilities and obligations of public sector entities in relation to their financial management, reporting, and accountability, with the overarching policy objective being to promote sound financial management and enhance public sector accountability.
The 2010 Determination, made under the FMA Act, was created to facilitate the transfer of a specific function and associated appropriation amount from the Department of Agriculture, Fisheries and Forestry (DAFF) to the Australian Fisheries Management Authority (AFMA). The determination was made on 25 October 2010 and involved the transfer of an administrative function associated with various fisheries joint authorities from DAFF to AFMA. The effect of this determination was to reduce the departmental item in the Appropriation Act (No. 1) 2010-2011 for DAFF and increase it for AFMA by $270,000. The enactment of this determination was consistent with the FMA Act's objective of ensuring the proper management and allocation of financial resources within the Commonwealth public sector.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2010/20 pertains to the transfer of specified functions and an associated budget allocation from the Department of Agriculture, Fisheries and Forestry (DAFF) to the Australian Fisheries Management Authority (AFMA). This instrument, made under the authority of the Financial Management and Accountability Act 1997 (FMA Act), specifically amends the Appropriation Act (No. 1) 2010-2011 to reassign a budgetary sum of $270,000. This adjustment reflects the transfer of administrative activities related to various fisheries joint authorities from DAFF to AFMA. The jurisdictional scope of this legislation is limited to Commonwealth entities, specifically DAFF and AFMA, and its application is confined to the financial reallocation within the federal budget for the specified fiscal year. The instrument does not extend beyond these boundaries or address operational aspects beyond the financial transfer. It is noteworthy that this instrument is a legislative instrument as defined by the Legislative Instruments Act 2003.
Key Provisions
The Financial Management and Accountability Act 1997 Determination 2010/20 (the Instrument) is a legislative instrument that transfers an amount of $270,000 from the Department of Agriculture, Fisheries and Forestry (DAFF) to the Australian Fisheries Management Authority (AFMA) in relation to the transfer of administrative activities associated with four Fisheries Joint Authorities. This transfer is detailed in Schedule 1 of the Instrument, which amends the Appropriation Act (No. 1) 2010-2011 (section 32). Specifically, this adjustment affects the departmental items allocated to DAFF and AFMA within the appropriation act.
The Instrument imposes certain obligations on the entities it governs. Primarily, it mandates the reallocation of financial resources from DAFF to AFMA. This involves a reduction in DAFF’s departmental item and a corresponding increase in AFMA’s departmental item within the appropriation act. The Instrument also necessitates that the Department of Finance and Deregulation (Finance) and its officials, as delegated by the Secretary of Finance, ensure the smooth transition of these administrative activities and their associated financial allocations.
In terms of potential breaches, the Financial Management and Accountability Act 1997 (FMA Act) provides that non-compliance with the provisions of the Instrument could result in various consequences. The specific offences and penalties are not detailed within the Instrument itself but would be governed by the broader legislative framework of the FMA Act and related laws. Generally, breaches of appropriation acts or related legislation could lead to civil or criminal penalties, depending on the nature and severity of the breach. Maximum penalties could include fines and, in severe cases, imprisonment, depending on the specific provisions of the FMA Act and other relevant legislation.
The Instrument ensures transparency and adherence to the legislative process by consulting DAFF and AFMA during its preparation. It also confirms that this Determination is a legislative instrument under the Legislative Instruments Act 2003. This legislative framework underscores the importance of proper consultation and adherence to established processes in managing financial transfers between government agencies.