Overview
The Financial Management and Accountability Act 1997 was enacted to ensure proper financial management and accountability in the administration of Commonwealth funds. This Act was introduced by the Australian Parliament to address the need for a robust framework that governs the allocation, use, and reporting of public funds. One of the key policy objectives of the FMA Act is to provide a legislative basis for the effective management of financial resources, ensuring that public funds are used efficiently, economically, and effectively. On 22 June 2011, a determination was made under this Act to facilitate the transfer of functions and appropriations from the Department of Families, Housing, Community Services and Indigenous Affairs (FHCSIA) to the Department of the Prime Minister and Cabinet (DPMC). This transfer, as outlined in Schedules 1 and 2 of the instrument, involves the reallocation of specific budgetary items related to the Community Investment - National Compact, Volunteering and Philanthropy, and the Indigenous Repatriation of Indigenous Remains, reflecting recent changes in administrative arrangements and ministerial portfolios.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2011/08 pertains specifically to the transfer of functions and associated appropriations between two Commonwealth departments, the Department of Families, Housing, Community Services and Indigenous Affairs (FHCSIA) and the Department of the Prime Minister and Cabinet (DPMC). This instrument was made on 22 June 2011, under the authority of Subsection 32(2) of the FMA Act, and it enacts the delegation of the power to determine appropriations transfers from the Minister for Finance and Deregulation to the Secretary of the Department of Finance and Deregulation, who in turn delegated this to certain officials within Finance. The purpose of this instrument is to amend the Appropriation Acts (No. 1) for the financial years 2009-2010 and 2010-2011, redirecting specific appropriations related to the Community Investment - National Compact, Volunteering and Philanthropy, and the Indigenous Repatriation of Indigenous Remains from FHCSIA to DPMC. This action follows a ministerial restructuring and departmental renaming as per changes in the Administrative Arrangements Order on 14 September 2010. The instrument ensures compliance with the Legislative Instruments Act 2003, with FHCSIA and DPMC consulted during its preparation.
Key Provisions
The Financial Management and Accountability Act 1997 Determination 2011/08 includes two main operative sections, which are outlined in Schedules 1 and 2 of the instrument (Schedule 1 and Schedule 2). These schedules detail the transfer of appropriations from the Department of Families, Housing, Community Services and Indigenous Affairs (FHCSIA) to the Department of the Prime Minister and Cabinet (DPMC). Specifically, Schedule 1 transfers $142,770.95 from the Appropriation Act (No. 1) 2009-2010, while Schedule 2 transfers $76,742.38 from the Appropriation Act (No. 1) 2010-2011. These appropriations pertain to the Community Investment - National Compact, Volunteering and Philanthropy, and the Indigenous Repatriation of Indigenous Remains.
The obligations imposed by this instrument on the parties involved include the necessary administrative actions to effect the transfer of funds as specified in the schedules. The DPMC must accept the transferred appropriations and ensure that they are used for the intended purposes, which are related to the specified programs and activities. The FHCSIA is required to de-allocate the transferred funds from their budget and ensure that the relevant accounting records are updated to reflect the transfer. Both departments must also comply with any additional reporting or auditing requirements that may arise from the transfer.
Breaches of the provisions set out in this instrument could lead to civil or criminal consequences, depending on the nature and severity of the breach. While specific offences and penalties are not detailed in the explanatory statement, general provisions under the Financial Management and Accountability Act 1997 could apply. These may include penalties for misusing public funds, failure to comply with appropriation acts, or other related offences. The maximum penalties for such breaches could include fines and, in more serious cases, imprisonment. The exact penalties would depend on the specific breach and relevant laws governing financial management and accountability in Australia.