Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted to establish a framework for the financial management, accountability and reporting by Commonwealth entities. This legislation was introduced to address the need for a cohesive and efficient approach to managing the financial resources of government agencies and ensuring accountability. The Act was enacted by the Parliament of Australia, with the overarching policy objective being to promote transparency, efficiency and effectiveness in the financial operations of Commonwealth entities. The Financial Management and Accountability Act 1997 Determination 2011/18 – Section 32 (Transfer of Functions from AGD to ITSA) was made to transfer the appropriations relating to the single legal framework for secured lending and a single national online register of personal property security interests from the Attorney-General’s Department (AGD) to the Insolvency and Trustee Service Australia (ITSA). This change was a result of an adjustment in the Administrative Arrangements Order, which took effect on 14 April 2010. The Determination, made on 1 November 2011, amends the Appropriation Act (No. 1) 2010-2011 and Appropriation Act (No. 1) 2011-2012 to reflect the transfer of these functions and the corresponding adjustments to departmental items.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2011/18 – Section 32 (Transfer of Functions from AGD to ITSA) applies to the transfer of specific functions from the Attorney-General’s Department (AGD) to the Insolvency and Trustee Service Australia (ITSA). This transfer concerns the single legal framework for secured lending and the single national online register of personal property security interests. The determination is effective from 1 November 2011 and it amends the Appropriation Acts (No. 1) 2010-2011 and 2011-2012 to reflect the change in departmental items. The purpose of this instrument is to adjust the budget allocations for these departments as a result of the transfer of responsibilities. This transfer was necessitated by a change in the Administrative Arrangements Order that took effect on 14 April 2010. The instrument is made under the authority of the Financial Management and Accountability Act 1997, with the power delegated by the Minister for Finance and Deregulation, through the Secretary of the Department of Finance and Deregulation, to certain officials within Finance. The consultation process involved both AGD and ITSA in the preparation of this instrument, ensuring that the amendments accurately reflect the transferred functions.
Key Provisions
The Financial Management and Accountability Act 1997 Determination 2011/18, made under section 32(2) of the FMA Act, involves the transfer of appropriations between the Attorney-General’s Department (AGD) and the Insolvency and Trustee Service Australia (ITSA). Specifically, section 1 of this instrument reduces the departmental item for AGD by $5,342,902.59, while section 2 increases the departmental item for ITSA by the same amount. This transfer of funds corresponds to the reallocation of responsibilities for the single legal framework for secured lending and the single national online register of personal property security interests, which was necessitated by a change in the Administrative Arrangements Order effective from 14 April 2010.
The obligations imposed by this determination on the parties involved are primarily administrative and financial. AGD is required to adjust its appropriations to reflect the reduction in funding, while ITSA must ensure that the increased funding is allocated appropriately to manage the transferred responsibilities effectively. Both departments must also comply with any reporting requirements associated with the changes in appropriations. The Secretary of the Department of Finance and Deregulation has the delegated authority to implement these changes, ensuring they are accurately reflected in the relevant Appropriation Acts.
Failure to comply with the provisions of this Determination could lead to various civil or criminal consequences, depending on the nature of the breach. Although the Explanatory Statement does not specify penalties, breaches of the FMA Act generally could result in civil penalties, including fines, or criminal penalties, including imprisonment, depending on the severity and intent behind the breach. The exact penalties would be determined by the courts, taking into account the relevant provisions of the FMA Act and any applicable case law.