Overview
The Financial Management and Accountability Act 1997 was enacted to provide a framework for the management and accountability of public money in the Australian government. This Act serves to ensure that public funds are managed efficiently, effectively, and in accordance with the law, with a focus on transparency and fiscal responsibility. The 1997 Act was introduced to address the need for a cohesive and systematic approach to financial management across federal agencies, thereby avoiding duplication and ensuring that resources are allocated and used optimally. Enacted by the Australian Parliament, the policy objective of the Act is to enhance public sector accountability and to support the integrity of financial management practices. The 2010 Determination under Section 32 of the FMA Act, which transfers specific functions and appropriations from the Department of Education, Employment and Workplace Relations (DEEWR) to the Australian Trade Commission (AUSTRADE), exemplifies the Act's role in facilitating organisational changes that align with broader governmental strategies and priorities.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2010/24, which amends Appropriation Act (No. 1) 2009-2010, applies specifically to the transfer of financial appropriations from the Department of Education, Employment and Workplace Relations (DEEWR) to the Australian Trade Commission (AUSTRADE). This transfer pertains to the functions related to the international promotion of Australia's education and training sectors, effective from 1 July 2010. The 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 Deregulation. The instrument reallocates $614,957.64 from the Departmental Outputs item of DEEWR to that of AUSTRADE, thereby adjusting the financial commitments within the Act. This change ensures that the financial resources align with the governmental decision to transfer the relevant functions, and was prepared in consultation with both DEEWR and AUSTRADE as required by the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of the Financial Management and Accountability Act 1997 Determination 2010/24 pertain to the transfer of specific appropriations and functions. Section 32(2) of the FMA Act facilitates the amendment of Appropriation Acts to reflect the transfer of functions from one agency to another. The determination specifies the transfer of $614,957.64 from the Department of Education, Employment and Workplace Relations (DEEWR) to the Australian Trade Commission (AUSTRADE), as detailed in Schedule 1 of the Instrument. This transfer is related to the international promotion of Australia's education and training sectors and was effective from 1 July 2010.
The Act imposes obligations on the entities involved, particularly the Department of Finance and Deregulation. The Secretary of the Department of Finance and Deregulation, as delegated by the Finance Minister, is responsible for making determinations under section 32(2) of the FMA Act. The determination process requires consultation with the affected departments, which in this case were DEEWR and AUSTRADE, as mandated by Part 3 of the Legislative Instruments Act 2003. This ensures that all stakeholders are informed and the transfer is properly documented within the Act.
Failure to comply with the provisions of the Act may result in various consequences. While the determination itself does not specify penalties, breaches of the Financial Management and Accountability Act 1997 could lead to civil or criminal penalties. For example, section 8 of the FMA Act provides for civil penalties, including fines up to $6,600 for individuals and $33,000 for corporations, for non-compliance. Additionally, section 10 of the FMA Act stipulates that breaches may also be subject to criminal prosecution, potentially resulting in fines and imprisonment depending on the severity of the offence. These provisions underscore the importance of adhering to the requirements set out in the Act.