Financial Management and Accountability Act 1997 Determination 2010/37 – Section 32 (Transfer of Functions from AGD to DORA)

Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for financial management and accountability within Australian government agencies. The Act was introduced to address the need for effective financial governance and transparency in the management of public funds. The Financial Management and Accountability Act 1997 was enacted by the Australian Parliament, aiming to establish a consistent approach to financial management across all Commonwealth agencies. One of the key policy objectives of the Act is to ensure that public resources are used efficiently, effectively, and economically, and that there is accountability for the decisions made regarding the use of these resources. The Act provides the legislative authority for the Minister for Finance to make determinations regarding the transfer of functions and related appropriations between agencies, as exemplified by the 2010/37 Determination under Section 32 of the Act, which transferred functions and corresponding appropriations from the Attorney-General’s Department to the Department of Regional Australia, Regional Development and Local Government. This Determination reflects the ongoing need to adapt financial allocations in response to changes in administrative arrangements.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2010/37 pertains to the transfer of financial functions and appropriations from the Attorney-General’s Department (AGD) to the Department of Regional Australia, Regional Development and Local Government (DORA) under subsection 32(2) of the FMA Act. The Determination affects both the AGD and DORA, modifying their respective appropriations in various Appropriation Acts from different fiscal years. The specific changes include reductions in administered capital and assets for the AGD and corresponding increases for DORA, reflecting the transfer of functions related to territories. The amendments are geographically focused within the Commonwealth of Australia, as the determination operates under the federal legislative framework. The determination applies nationally, affecting both departments across the Commonwealth. There are no stated exclusions or exemptions within the scope of this Determination; however, it is worth noting that the adjustments are specific to the financial functions and appropriations mentioned. Subordinate instruments may further specify or refine the application of this Determination, but the primary changes are clearly outlined in the schedules of the instrument.

Key Provisions

The Financial Management and Accountability Act 1997 Determination 2010/37, made under subsection 32(2) of the FMA Act, includes several key provisions (Schedules 1-12) that amend various Appropriation Acts to reflect the transfer of functions from the Attorney-General’s Department (AGD) to the Department of Regional Australia, Regional Development and Local Government (DORA). Specifically, these schedules adjust the financial allocations for AGD and DORA by reducing or increasing administered capital items, assets, and liabilities, as well as administered items for specific outcomes. For example, Schedule 1 reduces the Administered Capital item for AGD by $254,860.68, while Schedule 6 increases the Administered Assets and Liabilities item for DORA by $47,738,181.75. The Act imposes certain obligations on the involved departments, primarily ensuring that the financial adjustments reflected in the schedules are accurately implemented. These adjustments must be accurately recorded in the relevant Appropriation Acts, which in turn necessitate detailed and precise reporting and accounting practices by both AGD and DORA. The Act also mandates consultation between the Attorney-General’s Department and the Department of Regional Australia, Regional Development and Local Government during the preparation of the instrument, ensuring that the financial transfers are thoroughly vetted and agreed upon by the relevant parties. Failure to comply with the provisions of this Act could result in significant legal consequences. While the specific offences and penalties are not detailed in the Act itself, breaches of financial management and accountability legislation typically carry serious penalties, including fines and potential imprisonment. The precise penalties would depend on the specific nature and severity of the breach, as well as any relevant case law and statutory provisions. It is important for both departments to adhere to the financial management requirements outlined in the Act to avoid any legal repercussions.