Financial Management and Accountability Act 1997 Determination 2010/23 – Section 32 (Transfer of Functions from the former DITRDLG to DORA)

Overview

The Financial Management and Accountability Act 1997 was enacted to provide for the financial management and accountability of Commonwealth agencies. The Act was introduced to address the need for better management of public finances and to ensure that public funds are used effectively, efficiently, and economically. This Determination, made on 3 November 2010, amends Appropriation Acts to reflect the transfer of functions from the former Department of Infrastructure, Transport, Regional Development and Local Government to the Department of Regional Australia, Regional Development and Local Government, as part of a restructuring of ministerial portfolios and renaming of departments. This restructuring occurred on 14 September 2010, and the Department of Infrastructure and Transport and the Department of the Prime Minister and Cabinet were consulted in the preparation of this Determination. The policy objective of this instrument is to ensure that the financial implications of the transfer of functions are accurately reflected in the appropriation acts.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2010/23 pertains to the transfer of 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). The instrument, made under the authority of the Financial Management and Accountability Act 1997, involves amendments to several Appropriation Acts to reflect the reallocation of budgetary items between these departments. Specifically, the instrument adjusts the departmental allocations in the Appropriation Acts (No. 3) 2007-2008, (No. 5) 2008-2009, (No. 1) 2009-2010, and (No. 1) 2010-2011 to account for the financial implications of the departmental restructuring and the transfer of functions. This legislative instrument operates within the Commonwealth jurisdiction, impacting the financial management of these federal departments.

Key Provisions

The Financial Management and Accountability Act 1997 Determination 2010/23, made on 3 November 2010, involves several key provisions under the FMA Act. Primarily, it concerns the amendment of appropriations for the former Department of Infrastructure, Transport, Regional Development and Local Government (DITRDLG) across multiple financial years, as functions and responsibilities were transferred to the Department of Regional Australia, Regional Development and Local Government (DORA) following a ministerial portfolio restructuring on 14 September 2010. The amendment affects the departmental items by reducing the appropriations for DITRDLG and increasing the appropriations for DORA. Specifically, the departmental item for DITRDLG is reduced by $520,693.12 in the Appropriation Act (No. 3) 2007-2008, by $1,636,666.59 in the Appropriation Act (No. 5) 2008-2009, by $4,762,778.29 in the Appropriation Act (No. 1) 2009-2010, and by $1,987,770 in the Appropriation Act (No. 1) 2010-2011. Conversely, DORA's departmental item is increased by $8,907,908 in the Appropriation Act (No. 1) 2010-2011. The obligations imposed by this determination require the departments involved to ensure accurate financial reporting and adherence to the revised appropriation allocations. It mandates that DITRDLG, now the Department of Infrastructure and Transport, and DORA, the new department, must reflect the updated funding levels in their financial records and budget planning. This includes proper documentation and justification for the adjustments made to their respective departmental items. The Department of Finance and Deregulation, through its delegated officials, has the responsibility to oversee the implementation of these changes, ensuring compliance with the legislative requirements and the integrity of the financial management process. In terms of consequences for breach, the Financial Management and Accountability Act 1997 provides a framework for accountability and governance within federal departments. While the determination itself does not explicitly outline specific offences or penalties for non-compliance, any failure to comply with the appropriations as amended by this determination could result in broader legal and administrative consequences. Such non-compliance might lead to investigations by the Australian National Audit Office, potential audits, or even legal actions to rectify misallocations of funds. The seriousness of the breach would determine the appropriate response, which could range from administrative penalties to more severe sanctions depending on the impact on public funds and financial management practices.