Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the management of the Commonwealth's financial resources and accountability for the use of those resources. The 1997 Act was introduced to address the need for improved financial management and accountability within the Commonwealth government. The FMA Act serves to ensure that government funds are managed in a responsible and transparent manner, and that public sector agencies are held accountable for their financial activities. This is achieved through the establishment of robust financial management systems, regular audits, and the requirement for agencies to report on their financial performance.
The Financial Management and Accountability Act 1997 Determination 2011/05, made under the authority of the FMA Act, was enacted by the Parliament of Australia. This particular determination, made on 20 May 2011, addresses the transfer of functions and appropriations relating to Australian Government Disaster Recovery Payments from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to the Attorney-General’s Department (AGD). The policy objective behind this determination was to ensure a smooth transition of responsibilities and to reflect the appropriate allocation of appropriations within the government’s financial framework.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2011/05 pertains to the transfer of functions and associated appropriations from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to the Attorney-General’s Department (AGD). This determination arises under the authority granted by Subsection 32(2) of the Financial Management and Accountability Act 1997, which allows the Minister for Finance and Deregulation to amend appropriation acts concerning the transfer of functions between agencies. Specifically, the determination adjusts the departmental items within the Appropriation Acts (No. 1) 2009-2010 and 2010-2011, reflecting the reallocation of funds related to Australian Government Disaster Recovery Payments from FaHCSIA to AGD. This adjustment follows a change in the Administrative Arrangements Order on 14 October 2010, which transferred the responsibility for these payments to AGD. The instrument was prepared in consultation with both FaHCSIA and AGD, as required by Part 3 of the Legislative Instruments Act 2003, and constitutes a legislative instrument under section 5 of that Act.
Key Provisions
The Financial Management and Accountability Act 1997 Determination 2011/05 primarily affects two key sections: section 32, which outlines the transfer of functions from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to the Attorney-General’s Department (AGD), and sections 62 and 53, which pertain to the delegation of power necessary to enact these changes. Under section 32(2) of the FMA Act, the Minister for Finance and Deregulation is empowered to amend the relevant appropriation acts to facilitate the transfer of functions. This delegation mechanism is further clarified in sections 62 and 53 of the FMA Act, which delegate the power from the Minister to the Secretary of the Department of Finance and Deregulation, and then to specific officials within that department.
The obligations and requirements imposed by this determination on the relevant parties include the necessity for the Finance Minister to consult with both FaHCSIA and AGD, as mandated by the Legislative Instruments Act 2003. This consultation process ensures that both departments are informed and agree to the changes being implemented. The determination also specifies the exact financial adjustments to be made to the appropriation acts, with Schedule 1 reducing FaHCSIA’s departmental item by $56,429.69 for the 2009-2010 financial year and Schedule 2 reducing it by $38,344.23 for the 2010-2011 financial year. Concurrently, AGD’s departmental item is increased by $94,773.92 in the 2010-2011 financial year, reflecting the transfer of appropriations related to Australian Government Disaster Recovery Payments.
The determination also outlines the legal consequences of non-compliance. While the specific offences, penalties, or civil/criminal consequences for breach are not explicitly stated in the provided text, it is implied that failure to adhere to the provisions set out in the determination could result in legal repercussions under the FMA Act. This includes potential penalties for mismanaging public funds or failing to properly execute the transfer of functions as required by the legislation. The exact penalties would be determined based on the nature and severity of the breach, consistent with the general legal framework governing financial management and accountability in Australia.