Financial Management and Accountability Act 1997 Determination 2010/34 – Section 32 (Transfer of Functions from FaHCSIA to DSEWPC)

Overview

The Financial Management and Accountability Act 1997 Determination 2010/34 was enacted on 22 November 2010 by the Secretary of the Department of Finance and Deregulation, under the delegation of powers from the Minister for Finance and Deregulation. This legislative instrument was introduced to address the need to transfer appropriations between two government departments as a result of a restructuring of ministerial portfolios and renaming of departments, effective from 14 September 2010. The purpose of this Determination is to amend the Appropriation Acts (No. 1) 2009-2010 and 2010-2011 to reflect the transfer of funds from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to the Department of Sustainability, Environment, Water, Population and Communities (DSEWPC). This transfer was necessitated by a Government decision to realign certain functions and responsibilities. The policy objective underlying this transfer is to ensure the appropriate allocation and management of funds in accordance with the new departmental structures and responsibilities.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2010/34 pertains to the transfer of functions and associated financial appropriations from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to the Department of Sustainability, Environment, Water, Population and Communities (DSEWPC). This instrument applies to the entities involved in the transfer, namely FaHCSIA and DSEWPC, and it is concerned with the reallocation of specific financial items as per the administrative restructuring on 14 September 2010. The instrument amends the Appropriation Act (No. 1) 2009-2010 and the Appropriation Act (No. 1) 2010-2011 to reflect these changes in departmental responsibilities. The jurisdictional reach of this determination is Commonwealth-wide, as it involves the reallocation of funds within the federal government’s appropriations framework. No specific exclusions, exemptions, or thresholds are outlined in this instrument, and it does not extend or restrict its application through subordinate instruments. Instead, it serves as a legislative instrument under the Legislative Instruments Act 2003, aimed at ensuring the proper financial management and accountability within the restructured departments.

Key Provisions

The Financial Management and Accountability Act 1997 Determination 2010/34 outlines changes to appropriations related to the transfer of functions from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to the Department of Sustainability, Environment, Water, Population and Communities (DSEWPC). Specifically, Section 32 of the Act, facilitated by the Minister for Finance and Deregulation, has been invoked to amend the appropriation acts in accordance with the transfer of these functions (Section 32(2)). This was authorised under the Financial Management and Accountability Act 1997 (FMA Act) and was executed by the Secretary of the Department of Finance and Deregulation, following delegation from the Minister. This instrument entails two primary amendments to the appropriation acts. Schedule 1 of the Instrument amends Appropriation Act (No. 1) 2009-2010 by transferring an amount of $1,459,999.97 from FaHCSIA to DSEWPC. Similarly, Schedule 2 of the Instrument amends Appropriation Act (No. 1) 2010-2011 by transferring $4,984,877.88 and $95,694,105.95 from FaHCSIA to DSEWPC. These transfers reflect the reallocation of appropriations related to Affordable Housing; Housing Assistance and Homelessness Prevention – Housing Affordability Fund; and the Housing Assistance and Affordable Housing – National Rental Affordability Scheme, which were moved from FaHCSIA to DSEWPC following a government decision on 14 September 2010. The Act imposes several obligations on the parties involved in this transfer. FaHCSIA and DSEWPC were consulted in the preparation of this instrument, as mandated by Part 3 of the Legislative Instruments Act 2003. Additionally, the determination ensures that all changes are implemented in a manner consistent with the Financial Management and Accountability Act 1997 and the Appropriation Acts. This ensures that the financial management practices are adhered to and the accountability of the transferred functions is maintained. There are potential consequences for non-compliance with the provisions of this Determination. Under the Financial Management and Accountability Act 1997, failure to follow the prescribed procedures for the transfer of functions and appropriations could lead to legal and financial repercussions. The specific penalties for breaches of the Act are not detailed in the explanatory statement, but they could include fines, sanctions, or other legal actions as stipulated by the relevant legislation. The severity of these penalties may depend on the nature and extent of the breach.