Financial Management and Accountability Act 1997 Determination 2011/12 – Section 32 (Transfer of Functions from DEWHA to DPMC)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the financial management and accountability of Commonwealth entities. This Act aims to ensure transparency, efficiency, and effectiveness in the financial operations of government agencies. The FMA Act was introduced to address the need for a comprehensive legislative framework governing the financial management practices within the Commonwealth. Enacted by the Parliament of Australia, the Act establishes the overarching principles and standards that must be adhered to by all Commonwealth entities. The policy objective of the FMA Act is to ensure that public funds are managed responsibly and that there is accountability for the financial performance and stewardship of public resources. The 2011 Determination under section 32 of the FMA Act was made to facilitate the transfer of specific appropriations from the former Department of the Environment, Water, Heritage and the Arts to the Department of the Prime Minister and Cabinet, reflecting the restructuring of ministerial portfolios and departmental renamings that occurred in September 2010.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2011/12 pertains specifically to the transfer of certain financial 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 legislative instrument modifies the Appropriation Acts (No. 1) 2009-2010 and 2010-2011 to redirect appropriations related to the arts and culture from DEWHA to DPMC. The changes were implemented in response to the restructuring of ministerial portfolios and departmental renamings on 14 September 2010, as per the Administrative Arrangements Order. This transfer took effect on 3 June 2011, and involved the re-allocation of $40,855.11 and $40,855.00 respectively to the National Library of Australia. The instrument is authorised under Subsection 32(2) of the FMA Act, with the power to amend appropriation acts flowing from the Minister for Finance and Deregulation, through the Secretary of the Department of Finance and Deregulation, to specific officials within the Finance Department. The legislative instrument adheres to the requirements of the Legislative Instruments Act 2003 and involved consultation with the relevant departments during its preparation.

Key Provisions

The key provisions of the Financial Management and Accountability Act 1997 Determination 2011/12 (sections 1-2) involve the amendment of Appropriation Acts to facilitate the transfer of specific appropriations from one department to another. Specifically, Schedule 1 and Schedule 2 of the instrument amend Appropriation Act (No. 1) 2009-2010 and Appropriation Act (No. 1) 2010-2011, respectively, to transfer the Commonwealth Arts Committee (CAC) Act body payments to the National Library of Australia from the former Department of the Environment, Water, Heritage and the Arts (DEWHA) to the Department of the Prime Minister and Cabinet (DPMC). This transfer reflects the restructuring of ministerial portfolios and departmental renaming that occurred on 14 September 2010. The obligations imposed by this Act on the relevant entities include ensuring that the transfer of appropriations is accurately and effectively executed within the specified Acts. The Department of Finance and Deregulation, having been delegated the power to amend the appropriation acts, must ensure that the adjustments are properly made and that all financial records are updated accordingly to reflect the change. The former DEWHA and the DPMC were consulted during the preparation of this instrument, underscoring the importance of their involvement in the process. Breaches of the provisions of this instrument can lead to various consequences. The Act does not explicitly detail specific offences, penalties, or consequences for non-compliance. However, given the nature of the Financial Management and Accountability Act 1997, non-compliance could potentially result in civil or criminal penalties under broader financial management regulations. The penalties for such breaches can include fines, imprisonment, or other legal sanctions, depending on the severity of the breach and the specific provisions of other related legislation.