Overview
The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, serves to establish the framework for the financial management and accountability of Commonwealth entities. This Act was introduced to address the need for a robust system to manage and report on the financial activities of government agencies. Under this Act, the Minister for Finance and Deregulation has the authority to determine amendments to Appropriation Acts concerning the transfer of functions between agencies. In this context, the 2011 Determination under Section 32 of the FMA Act facilitated the transfer of an appropriation amount of $952,606.05 from the Department of Families, Housing, Community Services and Indigenous Affairs to the Department of Sustainability, Environment, Water, Population and Communities, reflecting a shift in responsibilities due to changes in the Administrative Arrangements Order. This transfer was effective from 30 June 2011, ensuring that financial provisions align with the new administrative structure.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2011/15 pertains to the transfer of functions and associated appropriations from the Department of Families, Housing, Community Services and Indigenous Affairs (FHCSIA) to the Department of Sustainability, Environment, Water, Population and Communities (SEWPaC). Specifically, the determination transfers an amount of $952,606.05 allocated for the Housing Assistance and Homelessness Prevention – Housing Affordability Fund from FHCSIA to SEWPaC, as part of the administrative restructuring reflected in the Administrative Arrangements Order effective from 14 September 2010. This transfer is reflected in Schedule 1 of the Appropriation Act (No. 1) 2010-2011 and commenced on 30 June 2011. The instrument was made under the authority of the Financial Management and Accountability Act 1997, with the power delegated by the Minister for Finance and Deregulation to the Secretary of the Department of Finance and Deregulation, who in turn delegated it to certain officials within the Finance Department. The determination is a legislative instrument under the Legislative Instruments Act 2003, and the departments involved were consulted in its preparation.
Key Provisions
The main operative sections of the Financial Management and Accountability Act 1997 Determination 2011/15, particularly Schedule 1, transfer a specific appropriation amount from the Department of Families, Housing, Community Services and Indigenous Affairs (FHCSIA) to the Department of Sustainability, Environment, Water, Population and Communities (SEWPaC). This transfer, detailed in section 32(2) of the FMA Act, involves an amount of $952,606.05, and it is effective from 30 June 2011. This action pertains to the Housing Assistance and Homelessness Prevention – Housing Affordability Fund, which was shifted from FHCSIA to SEWPaC due to changes in the Administrative Arrangements Order as of 14 September 2010.
The obligations imposed by this Act on the entities involved include the timely and accurate transfer of the specified appropriations as outlined in Schedule 1. This involves both departments ensuring that the financial responsibilities and resources are appropriately reallocated. FHCSIA and SEWPaC are required to manage this transfer within the legal framework provided by the FMA Act, ensuring that the appropriations are accurately reflected in their respective financial records and reporting. The determination also requires consultation with both departments during the preparation of this instrument, as mandated by Part 3 of the Legislative Instruments Act 2003, to ensure transparency and compliance with legislative requirements.
Breaches of the obligations under the Financial Management and Accountability Act 1997 can lead to significant civil and criminal consequences. While the specific section detailing penalties is not mentioned in the explanatory statement, under the FMA Act, non-compliance with the provisions could result in civil penalties, including fines and recovery of financial losses. Additionally, there could be criminal penalties for wilful misconduct or breaches of fiduciary duty, which may include imprisonment or substantial fines, depending on the severity of the breach and the specific provisions of the FMA Act. The maximum penalties would be determined based on the specific breaches and the legal interpretation of the FMA Act.