Financial Management and Accountability Act 1997 Determination 2010/35 – Section 32 (Transfer of Functions from DPMC to Finance)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the management and accountability of financial resources within the Commonwealth of Australia. This Act was introduced to address the need for a robust financial management system that ensures transparency, accountability, and efficiency in the use of public funds. The FMA Act was enacted by the Parliament of Australia, with the intention of establishing clear guidelines and standards for financial management across government agencies. The Act empowers the Minister for Finance and Deregulation to make determinations regarding the transfer of functions and appropriations between agencies, as reflected in the 2010 Determination under Section 32 of the Act, which facilitates the reallocation of resources to ensure that the administration aligns with the current portfolio responsibilities.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2010/35 pertains to the transfer of financial functions and appropriations from the Department of the Prime Minister and Cabinet (DPMC) to the Department of Finance. This instrument, made under the authority of the FMA Act, aims to adjust the Appropriation Act (No. 1) 2010-2011 by transferring specific appropriations related to the Prime Minister's Official Residences from DPMC to the Department of Finance. The determination was necessitated by a restructuring of ministerial portfolios and departmental renaming that occurred on 14 September 2010, as per changes to the Administrative Arrangements Order. The specified appropriations transferred amount to $69,807.69 for the departmental item and $213,745.46 for the administered item under Outcome 1 for DPMC. This transfer is confined within the same Act and does not extend beyond the specified financial allocations. The instrument was prepared in consultation with the relevant departments as required by the Legislative Instruments Act 2003.

Key Provisions

The main operative sections of the Financial Management and Accountability Act 1997 Determination 2010/35 pertain to the transfer of functions from the Department of the Prime Minister and Cabinet (DPMC) to the Department of Finance, as outlined in Schedule 1. Specifically, section 32(2) of the FMA Act allows the Minister for Finance to make such determinations, and this has been delegated to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act. This instrument transfers $69,807.69 from the departmental item for DPMC and $213,745.46 from the administered item for Outcome 1 for DPMC to the departmental item for Finance, reflecting the restructuring of ministerial portfolios and departmental renamings that occurred on 14 September 2010. The Act imposes several obligations on the entities it governs. Primarily, it mandates that the necessary appropriations are to be transferred from DPMC to Finance to align with the restructuring of portfolios and departmental responsibilities. The determination ensures that financial management practices and accountability are maintained during this transition, reflecting the importance of accurate and timely financial transfers in the public sector. There are no specific offences, penalties, or civil/criminal consequences outlined in this instrument. However, any failure to comply with the financial transfer provisions could potentially lead to administrative oversight and scrutiny from relevant authorities, given the critical nature of financial management and accountability in government operations. The maximum penalties for breaches would be determined under the relevant sections of the FMA Act and any other applicable legislation, but these are not explicitly detailed in this particular Determination.