Financial Management and Accountability Act 1997 Determination 2011/10 – Section 32 (Transfer of Functions from the former DEWHA to DPMC)

Overview

The Financial Management and Accountability Act 1997 Determination 2011/10, made on 30 June 2011, amends the Appropriation Acts (No. 1) 2009-2010, (No. 1) 2010-2011, and (No. 2) 2010-2011 to facilitate the transfer of appropriations from the former Department of the Environment, Water, Heritage and the Arts (DEWHA) to the Department of the Prime Minister and Cabinet (DPMC) following the restructuring of ministerial portfolios and renaming of departments on 14 September 2010. This transfer was necessitated by the reallocation of arts and culture functions from the former DEWHA to DPMC, in line with the changes to the Administrative Arrangements Order. The instrument was enacted by the Minister for Finance and Deregulation under section 32(2) of the FMA Act, with the power delegated to the Secretary of the Department of Finance and Deregulation and further delegated to certain officials within Finance, in accordance with the Legislative Instruments Act 2003. The purpose of this Determination is to ensure that the financial management of transferred functions aligns with the new departmental structure.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2011/10, specifically Section 32, addresses the transfer of functions from the former Department of the Environment, Water, Heritage and the Arts (DEWHA) to the Department of the Prime Minister and Cabinet (DPMC). This instrument, made on 30 June 2011, amends certain appropriation acts to reflect the reallocation of funds associated with the transfer of arts and culture functions. The amendment pertains to the appropriation acts for the financial years 2009-2010 and 2010-2011, adjusting the departmental items to account for the transferred appropriations. The determination applies to the entities involved in the ministerial portfolio restructuring, namely the former DEWHA and the DPMC, and is confined to the Commonwealth jurisdiction. The changes were made following the restructuring of ministerial portfolios and renaming of departments, as outlined in the Administrative Arrangements Order on 14 September 2010. Notably, the former DEWHA was renamed the Department of Sustainability, Environment, Water, Population and Communities, and the arts and culture functions were subsequently transferred to DPMC.

Key Provisions

The Financial Management and Accountability Act 1997 Determination 2011/10 involves three schedules that amend appropriation acts to transfer funds from the former Department of the Environment, Water, Heritage and the Arts (DEWHA) to the Department of the Prime Minister and Cabinet (DPMC). Schedule 1 amends the Appropriation Act (No. 1) 2009-2010, transferring $5,059,522.92 from the departmental item of the former DEWHA to DPMC. Schedule 2 makes a similar amendment to the Appropriation Act (No. 1) 2010-2011, transferring $974,949.21. Lastly, Schedule 3 adjusts the Appropriation Act (No. 2) 2010-2011, transferring $218,000.00 from the other departmental item (Equity Injections) for the former DEWHA to DPMC. These amendments ensure that the appropriations related to arts and culture functions are appropriately allocated following the restructuring of ministerial portfolios and departmental renaming. This Act imposes obligations on the Finance Minister, who has the authority under section 32(2) of the Financial Management and Accountability Act 1997 to determine amendments to appropriation acts concerning the transfer of functions between agencies. Pursuant to section 62 of the FMA Act, this power is delegated to the Secretary of the Department of Finance and Deregulation, who in turn delegates it to specific officials within the Finance Department. The Act necessitates that these officials consult with the relevant departments, as required under Part 3 of the Legislative Instruments Act 2003, to ensure that the transfer of funds is accurately reflected in the appropriation acts. Under this legislation, breaches or failures to comply with the requirements to properly transfer funds and adjust appropriation acts could result in legal and financial consequences. The penalties for non-compliance are not explicitly stated within the document but would typically fall under the general provisions of the Financial Management and Accountability Act 1997, which might include civil or criminal penalties depending on the severity and intent of the breach. Given the financial nature of the transfers involved, penalties could be substantial, reflecting the importance of accurate financial management and accountability in government operations.