Financial Management and Accountability Act 1997 Determination 2010/22 – Section 32 (Transfer of Functions from the former DITRDLG to DORA)

Overview

The Financial Management and Accountability Act 1997 Determination 2010/22, enacted on 1 November 2010, addresses the need to rectify a financial allocation error that occurred during the transfer of functions between government departments. This determination was made under the authority of the Financial Management and Accountability Act 1997, with the power delegated from the Minister for Finance and Deregulation to the Secretary of the Department of Finance and subsequently to certain officials within Finance. The objective of this instrument is to amend the Appropriation Act (No. 1) 2010-2011 by reallocating a sum of $1,601,636 from Outcome 1 of the Department of Regional Australia, Regional Development and Local Government to Outcome 3 of the former Department of Infrastructure, Transport, Regional Development and Local Government, now known as the Department of Infrastructure and Transport. This adjustment rectifies an over-allocation that was previously transferred on 14 September 2010.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2010/22 pertains to the amendment of Appropriation Act (No. 1) 2010-2011 to rectify an excess transfer of funds from the Department of Infrastructure, Transport, Regional Development and Local Government (DITRDLG) to the Department of Regional Australia, Regional Development and Local Government (DORA). Specifically, this Determination reduces the administered item for Outcome 1 in the Appropriation Act for DORA and increases the administered item for Outcome 3 in the Appropriation Act for DITRDLG by an amount of $1,601,636, effectively returning this excess transfer. The instrument was made on 1 November 2010 under the authority of the Financial Management and Accountability Act 1997, and the power to make such a determination was delegated by the Minister for Finance and Deregulation to the Secretary of the Department of Finance, who further delegated it to certain officials within the Department of Finance. This Determination applies directly to the financial reallocation between the specified departments within the Commonwealth of Australia, ensuring that the budget allocations reflect the actual transfer of functions as mandated by the administrative changes of 14 September 2010.

Key Provisions

The Financial Management and Accountability Act 1997 Determination 2010/22 (section 32) (the Determination) amends the Appropriation Act (No. 1) 2010-2011 by transferring an amount of $1,601,636 from the administered item for Outcome 1 for the Department of Regional Australia, Regional Development and Local Government (DORA) to the administered item for Outcome 3 for the former Department of Infrastructure, Transport, Regional Development and Local Government (DITRDLG) (section 1). This amendment rectifies an over-transfer of funds that occurred in a previous Determination. The obligations imposed by this Determination are primarily administrative and financial in nature. The Department of Regional Australia, Regional Development and Local Government is required to reduce its administered item for Outcome 1 by the specified amount, while the Department of Infrastructure and Transport must increase its administered item for Outcome 3 by the same amount (section 1). This transfer ensures that the funds are reallocated accurately, reflecting the true intent of the original transfer of functions between departments. Failure to comply with the requirements set out in the Determination could potentially lead to financial discrepancies and mismanagement of public funds. Although specific offences and penalties are not detailed within the Determination, breaches of the Financial Management and Accountability Act 1997 (FMA Act) could result in civil or criminal liability. Under the FMA Act, penalties for breaches can include fines and, in serious cases, imprisonment. The exact penalties would depend on the nature and severity of the breach, as well as any applicable regulations or guidelines. The delegation of powers under section 32 of the FMA Act allows the Minister for Finance and Deregulation to amend appropriation acts in relation to the transfer of functions between agencies, which has been exercised here to correct an administrative error. The Secretary of the Department of Finance and Deregulation, in turn, has delegated this authority to certain officials within the Department of Finance. This legislative framework ensures that financial transfers are managed with precision and accountability, reflecting the legislative intent to maintain proper fiscal control and transparency in governmental financial operations.