Financial Management and Accountability Act 1997 Determination 2011/02 – Section 32 (Transfer of Functions from DSEWPC to DPMC)

Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for the financial management and accountability of Commonwealth entities, ensuring that public funds are used efficiently, effectively, economically, and ethically. The Act was introduced to address the need for a unified approach to managing public money and to enhance transparency and accountability in the use of public funds across government agencies. This legislation empowers the Minister for Finance to make determinations regarding the amendment of appropriation acts to facilitate the transfer of functions between agencies, as exemplified by Determination 2011/02. The determination was made by the Secretary of the Department of Finance, pursuant to a delegation of authority under the FMA Act, and aims to align financial appropriations with the transfer of specific functions from the Department of Sustainability, Environment, Water, Population and Communities to the Department of the Prime Minister and Cabinet, reflecting a strategic shift in the management of arts and cultural entities.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2011/02 pertains to the transfer of functions and associated appropriations from the Department of Sustainability, Environment, Water, Population and Communities (DSEWPC) to the Department of the Prime Minister and Cabinet (DPMC). This transfer was necessitated by a government decision to reallocate responsibility for the arts and culture function. The instrument outlines the specific appropriations to be moved, including departmental items, administered items, and body payment items associated with various cultural and artistic institutions such as the Australia Council, Australian Film, Television and Radio School, Australian National Maritime Museum, National Gallery of Australia, National Library of Australia, National Museum of Australia, National Film and Sound Archive, and Screen Australia. The determination affects the financial allocations across multiple Appropriation Acts, ensuring that the necessary appropriations are correctly reassigned to reflect the change in departmental responsibility. The jurisdictional reach of this instrument is within the Commonwealth of Australia, impacting the financial management practices of federal departments and agencies.

Key Provisions

The Financial Management and Accountability Act 1997 Determination 2011/02 (sections 1-8) amends various appropriation acts to effect the transfer of specific funding allocations from the Department of Sustainability, Environment, Water, Population and Communities (DSEWPC) to the Department of the Prime Minister and Cabinet (DPMC). This transfer includes departmental items, administered items, and certain body payment items under the Commonwealth Authorities and Companies Act 1997 (CAC Act). For example, Schedule 1 of the Determination transfers a significant amount of funding from DSEWPC to DPMC, including specific allocations for the Australia Council, the Australian Film, Television and Radio School, and other national cultural institutions. Schedules 2 through 8 further detail the transfer and reduction of certain items across various financial years, ensuring a smooth transition of financial responsibilities. The obligations imposed by this Determination on the parties involved are primarily administrative and procedural. DSEWPC and DPMC must ensure that the transferred funds are accounted for correctly in their respective financial records, and that any changes to appropriation acts are implemented in accordance with the provisions of the Financial Management and Accountability Act 1997. This includes updating internal systems and processes to reflect the new allocations and ensuring compliance with financial management standards. Additionally, the officials within the Department of Finance and Deregulation responsible for making these amendments must adhere to the delegations of authority outlined in the FMA Act. Failure to comply with the provisions of this Determination could result in legal and financial consequences. Under the Financial Management and Accountability Act 1997, breaches of the Act may lead to penalties or other sanctions. For instance, if an entity fails to account for transferred funds correctly, it could face financial penalties or even criminal charges, depending on the severity and intent of the breach. The exact penalties are not specified in the Determination but would be consistent with the penalties outlined in the FMA Act, which can include fines and imprisonment for serious breaches. Civil consequences might also include the need for corrective action or additional reporting to oversight bodies.