Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted by the Australian Parliament to ensure sound financial management and accountability within the federal government. The Act provides the framework for the appropriation and expenditure of Commonwealth funds, aiming to ensure that public money is used efficiently and effectively. This legislation was introduced to address the need for a comprehensive and transparent system for managing public finances, thereby enhancing the accountability of government agencies. The Act empowers the Minister for Finance and Deregulation to make determinations regarding the transfer of functions and appropriations between agencies, as illustrated by the 2011 Determination that transferred $5 million from the Department of Education, Employment and Workplace Relations (DEEWR) to the Tertiary Education Quality and Standards Agency (TEQSA). This transfer was part of the broader higher education reforms initiated in the 2009-2010 Budget package, highlighting the policy objective of supporting the establishment of TEQSA.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2011/14, made under section 32(2) of the FMA Act, pertains to the transfer of functions and related appropriations from the Department of Education, Employment and Workplace Relations (DEEWR) to the Tertiary Education Quality and Standards Agency (TEQSA). This determination applies to the administrative and financial arrangements within the Commonwealth of Australia, specifically affecting the budgetary allocations for these entities. The instrument authorises the transfer of $5,000,000 from DEEWR to TEQSA, as outlined in Schedule 1 of the Appropriation Act (No. 1) 2011-2012, to facilitate the establishment of TEQSA, which was initiated as part of the 2009-2010 Budget package of higher education reforms. This transfer is effective from 1 July 2011 and involves the re-allocation of funds from an "Administered" item under Outcome 3 of DEEWR to a "Departmental" item for TEQSA. The instrument also notes that consultations were undertaken with the Department of Premier and Cabinet (DPMC) and the Department of Broadband, Communications and the Digital Economy (DBCDE) in line with the Legislative Instruments Act 2003.
Key Provisions
The Financial Management and Accountability Act 1997 Determination 2011/14 (Section 32) pertains to the transfer of functions from the Department of Education, Employment and Workplace Relations (DEEWR) to the Tertiary Education Quality and Standards Agency (TEQSA). Specifically, this instrument, dated 8 August 2011, details the transfer of $5,000,000 from Outcome 3 under the “Administered” item for DEEWR to the “Departmental” item for TEQSA, as per Schedule 1 of the Appropriation Act (No. 1) 2011-2012. This financial reallocation was to facilitate the establishment of TEQSA within DEEWR, effective from 1 July 2011.
Under the provisions of this instrument, the Minister for Finance and Deregulation, or their delegate, has the authority to amend Appropriation Acts to reflect the transfer of functions between different agencies. The transfer is formally authorised under subsection 32(2) of the Financial Management and Accountability Act 1997 (FMA Act). The power to make such determinations has been delegated to the Secretary of the Department of Finance and Deregulation, and further to certain officials within that department. This delegation is provided for under sections 62 and 53 of the FMA Act.
This instrument imposes specific obligations on the parties involved in the transfer. The Secretary of Finance, or their authorised officials, must ensure that the appropriations are correctly reallocated to reflect the new agency's requirements. DEEWR is required to provide the necessary information and support for the transition of funds, while TEQSA must be ready to manage and account for these funds in accordance with the financial regulations and accountability standards set forth in the FMA Act. Both agencies are required to maintain accurate records and reports to demonstrate compliance with the terms of the transfer.
Failure to comply with the provisions of this instrument may lead to legal and financial repercussions. Although the specific offences and penalties are not detailed in this explanatory statement, breaches of financial management and accountability legislation generally can result in both civil and criminal penalties. Civil penalties might include fines, while criminal penalties could involve imprisonment, depending on the severity and intent of the breach. The exact penalties would be determined in accordance with the relevant sections of the FMA Act and other applicable legislation.