Financial Management and Accountability Act 1997 Determination 2010/27 – Section 32 (Transfer of Functions from Health to DPMC)

Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for financial management and accountability within the Australian government. This Act was introduced to address the need for robust financial oversight and management across federal agencies. The Act empowers the Minister for Finance and Deregulation to amend appropriation acts in relation to the transfer of functions between agencies. The 2010 determination under Section 32 of the FMA Act facilitates the transfer of financial responsibilities from the Department of Health and Ageing to the Department of the Prime Minister and Cabinet. This was enacted to reflect changes in ministerial portfolios and departmental restructuring. The determination adjusts appropriation allocations to ensure that financial resources align with the new functional responsibilities, as outlined in the Administrative Arrangements Order of 2010.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2010/27 pertains to the transfer of specific financial functions and appropriations from the Department of Health and Ageing to the Department of the Prime Minister and Cabinet. This legislative instrument applies to the entities and appropriations listed, specifically the departmental and administered items of these departments as outlined in the Appropriation Acts (No. 1) 2010-2011 and (No. 2) 2010-2011. The transfers include funds for the Australian Sports Commission and various government outcomes, reflecting the reallocation of responsibilities as a result of a ministerial portfolio restructure on 14 September 2010. This instrument operates within the Commonwealth jurisdiction, impacting the allocation of federal funds and the financial management practices of the involved departments. There are no specific exclusions or exemptions mentioned in this Determination, and it does not set any particular thresholds for its application. The application of this Determination can be extended or restricted through subordinate instruments, although such actions are not detailed in the explanatory statement.

Key Provisions

The key operative sections of the Financial Management and Accountability Act 1997 Determination 2010/27 primarily involve the transfer of functions and associated appropriations from one government department to another. Section 32(2) of the Act allows the Minister for Finance and Deregulation to amend Appropriation Acts to reflect the transfer of functions between agencies. This is further supported by delegations under sections 62 and 53 of the FMA Act, which delegate these powers to the Secretary of the Department of Finance and Deregulation and certain officials within that department, respectively. The primary obligations imposed by this Determination involve the specific financial reallocations between the Department of Health and Ageing and the Department of the Prime Minister and Cabinet. Schedule 1 of the Determination transfers $3,833,000 from the departmental item for the Department of Health and Ageing to the departmental item for the Department of the Prime Minister and Cabinet, $38,046,160.13 from the administered item for Health to the administered item for the Department of the Prime Minister and Cabinet, and $132,032,000 from the CAC Act body payment item for the Australian Sports Commission from Health to the Department of the Prime Minister and Cabinet. Similarly, Schedule 2 transfers $249,224.03 from the State, ACT, NT, and local government item for Health to the corresponding item for the Department of the Prime Minister and Cabinet. The Act does not explicitly detail offences, penalties, or civil/criminal consequences for breaches. However, non-compliance with the terms of this Determination could potentially lead to financial mismanagement or misallocation of funds, which may attract scrutiny and corrective action under the Financial Management and Accountability Act 1997 and related regulations. Given the nature of financial transfers, any failure to comply with the prescribed appropriations could result in administrative penalties or require remedial action to correct the financial allocations as intended by the legislation.