Overview
The Financial Management and Accountability Act 1997 was enacted to ensure effective financial management within the Australian government, providing a framework for budget appropriations and accountability mechanisms. The Act was introduced to address issues related to the allocation and oversight of public funds, aiming to ensure transparency and proper use of taxpayer money. This Determination, made under subsection 32(2) of the FMA Act, was issued by the Secretary of the Department of Finance and Deregulation, pursuant to a delegation from the Minister for Finance and Deregulation. The purpose of this Determination is to facilitate the transfer of certain financial functions and appropriations from the Department of Health and Ageing to the Department of the Prime Minister and Cabinet, reflecting a recent restructuring of ministerial portfolios and departmental names. This transfer ensures that the financial management of sports-related functions is appropriately aligned with the new administrative arrangements.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2011/11 pertains to the transfer of specific appropriations from the Department of Health and Ageing to the Department of the Prime Minister and Cabinet, following a restructuring of ministerial portfolios and departmental renaming. The instrument, which came into effect on 7 July 2011, involves amendments to three Appropriation Acts, transferring funds associated with sports functions from Health to DPMC. This transfer includes $945,027.49 from the departmental item of Health to the departmental item of DPMC in the Appropriation Act (No. 1) 2008-2009, $5,158,598.02 from the administered item for Outcome 15 of Health to the administered item for Outcome 3 of DPMC in the Appropriation Act (No. 1) 2010-2011, and $775.97 from the State, ACT, NT and local government item for Outcome 15 of Health to the corresponding item for Outcome 3 of DPMC in the Appropriation Act (No. 2) 2010-2011. The amendments were enacted to align with the changes in administrative arrangements, with the transfers taking effect from 30 June 2011. The instrument reflects the legislative authority under the Financial Management and Accountability Act 1997, with the power to make such determinations delegated from the Finance Minister to the Secretary of Finance and further to certain officials within the Department of Finance and Deregulation.
Key Provisions
The Financial Management and Accountability Act 1997 Determination 2011/11, which was made on 7 July 2011, involves amendments to the Appropriation Acts for the years 2008-2009 and 2010-2011. This determination, under section 32(2) of the FMA Act, allows the transfer of specific appropriations from the Department of Health and Ageing (Health) to the Department of the Prime Minister and Cabinet (DPMC). Specifically, Schedule 1 transfers $945,027.49 from the departmental item for Health to the departmental item for DPMC. Schedule 2 transfers $5,158,598.02 from the administered item for Outcome 15 for Health to the administered item for Outcome 3 for DPMC. Finally, Schedule 3 transfers $775.97 from the State, ACT, NT, and local government item for Outcome 15 for Health to the corresponding item for DPMC. The transfers are intended to reflect the restructuring of ministerial portfolios and departmental renaming that occurred on 14 September 2010, as per changes to the Administrative Arrangements Order.
The obligations imposed by this Determination are primarily administrative and financial in nature. Both Health and DPMC are required to ensure that the transfers of funds are accurately reflected in their respective accounts and records. The officials within the Department of Finance and Deregulation (Finance) who were delegated the authority to make these amendments must ensure that the changes are correctly implemented in the relevant Appropriation Acts. Furthermore, the departments must maintain transparency and compliance with financial management standards as stipulated by the FMA Act.
Breaching the provisions of this Determination could have significant consequences. Under the FMA Act, any failure to comply with the transfer of funds as outlined in this Determination could result in financial mismanagement and potential legal repercussions. Although specific penalties for non-compliance are not detailed in the explanatory statement, breaches of the FMA Act generally could lead to criminal charges, fines, and other civil liabilities. The severity of the penalties would depend on the nature and extent of the breach, with potential maximum penalties varying based on the specific violations of the Act.