Financial Management and Accountability Act 1997 Determination 2011/04 – Section 32 (Transfer of Functions from FaHCSIA to DSEWPC)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to establish a framework for the management and accountability of financial resources within the Australian Government. This Act was introduced to address the need for a coherent and transparent system to oversee the allocation, use, and reporting of government funds. The 1997 Act allows for the delegation of powers to various officials, including the Finance Minister and the Secretary of the Department of Finance and Deregulation, to facilitate the transfer of functions and appropriations between different government agencies. In 2011, the Act was used to transfer specific appropriations from the Department of Families, Housing, Community Services and Indigenous Affairs to the Department of Sustainability, Environment, Water, Population and Communities, reflecting a restructuring of ministerial portfolios and departmental functions. This transfer was effected through a legislative instrument made under the authority of the FMA Act, ensuring that the necessary adjustments in funding were aligned with the newly defined roles and responsibilities of the respective departments.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2011/04 pertains 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), with the legislative authority deriving from the Financial Management and Accountability Act 1997. Specifically, the determination applies to the reallocation of appropriations from FaHCSIA to DSEWPC, impacting budgetary allocations for Affordable Housing, Housing Assistance, and Homelessness Prevention – Housing Affordability Fund, and the Affordable Housing – National Rental Affordability Scheme. This transfer reflects the restructuring of ministerial portfolios and renaming of departments as per the changes in the Administrative Arrangements Order on 14 September 2010. The instrument modifies Appropriation Acts (No. 1) 2009-2010 and 2010-2011 to reflect this change, ensuring that the financial resources follow the reallocation of functions. The instrument is crafted under the delegation of powers from the Minister for Finance and Deregulation to the Secretary of the Department of Finance and Deregulation, and further to specific officials within Finance, as per the provisions of the FMA Act.

Key Provisions

The main operative sections of the Financial Management and Accountability Act 1997 Determination 2011/04 involve 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, Schedule 1 of the Instrument (section 1) amends the Appropriation Act (No. 1) 2009-2010 to transfer $845,647.15 from FaHCSIA to DSEWPC, while Schedule 2 (section 2) amends the Appropriation Act (No. 1) 2010-2011 to transfer $416,140.02 for the same purpose. These transfers reflect the reallocation of appropriations relating to Affordable Housing, Housing Assistance and Homelessness Prevention – Housing Affordability Fund, and the Affordable Housing – National Rental Affordability Scheme. The Act imposes obligations on the parties involved, including ensuring that the transfers of appropriations and functions are executed in accordance with the specified amendments. The determination must be consistent with the restructuring of ministerial portfolios and the renaming of departments as per the Administrative Arrangements Order. The departments, FaHCSIA and DSEWPC, were consulted during the preparation of the instrument, ensuring that the changes are properly aligned with the intended policy shifts. The Act also delineates consequences for non-compliance or improper execution of the transfers. While the specific penalties for breaches are not detailed within the explanatory statement, breaches of the Financial Management and Accountability Act 1997 can result in both civil and criminal penalties. These can include fines and imprisonment, depending on the severity and intent of the breach. The Financial Management and Accountability Act 1997 itself outlines various offences, with penalties that can vary significantly depending on the nature and extent of the breach. In general, the penalties can include substantial fines and potential imprisonment for serious offences.