Overview
The Financial Management and Accountability Act 1997 Determination 2011/21, made on 22 December 2011, is a legislative instrument under the authority of the Financial Management and Accountability Act 1997 (FMA Act). This instrument was enacted by the Parliament of Australia to address the need for financial adjustments arising from the transfer of specific functions from the Department of Education, Employment and Workplace Relations (DEEWR) to the newly established Tertiary Education Quality and Standards Agency (TEQSA). The purpose of this determination is to amend the Appropriation Acts (No. 1) 2010-2011 and 2011-2012 to reflect the transfer of financial responsibilities between these agencies, thereby ensuring that the appropriations are correctly allocated to support the functions of TEQSA. This amendment involves reducing certain amounts from DEEWR's departmental and administered items and correspondingly increasing TEQSA's departmental item, aligning the financial resources with the operational requirements of the newly established agency.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2011/21, specifically pertaining to the transfer of functions from the Department of Education, Employment and Workplace Relations (DEEWR) to the Tertiary Education Quality and Standards Agency (TEQSA), applies to the appropriations within the Australian federal government's budgetary framework. This determination modifies the Appropriation Act (No. 1) 2010-2011 and the Appropriation Act (No. 1) 2011-2012, reducing the departmental allocation for DEEWR and correspondingly increasing the allocation for TEQSA to reflect the transfer of specific functions related to the establishment of TEQSA. The amendments are enacted to facilitate the transfer of budgetary resources necessary for the new agency's operations. This instrument adheres to the legislative authority granted under the Financial Management and Accountability Act 1997, and the changes are implemented through the delegation of powers from the Minister for Finance and Deregulation to the Secretary of the Department of Finance. The transfer of funds is a direct result of the establishment of TEQSA as part of the 2009-2010 Budget package aimed at higher education reforms.
Key Provisions
The Financial Management and Accountability Act 1997 Determination 2011/21 addresses the transfer of specific functions from the Department of Education, Employment and Workplace Relations (DEEWR) to the Tertiary Education Quality and Standards Agency (TEQSA). This transfer is reflected in the amendments to the Appropriation Act (No. 1) 2010-2011 and the Appropriation Act (No. 1) 2011-2012. In particular, Section 1 of this instrument reduces the "Departmental" item for DEEWR by $132,246.81, while Section 2 reduces the "Administered" item (Outcome 3) for DEEWR by $9,867,274.70. Concurrently, Section 2 increases the "Departmental" item for TEQSA by $9,999,521.51, thereby facilitating the establishment of the new agency. This transfer is authorised under subsection 32(2) of the FMA Act, which allows the Minister for Finance and Deregulation to amend Appropriation Acts concerning the transfer of functions between agencies.
This determination imposes specific obligations on the entities involved. The Secretary of the Department of Finance and Deregulation, acting on behalf of the Minister, must ensure that the financial implications of the function transfer are accurately reflected in the appropriation acts. This involves precise adjustments to the budgetary allocations for both DEEWR and TEQSA to reflect the transferred responsibilities and funding requirements. Moreover, these changes must be implemented in compliance with the Financial Management and Accountability Act 1997, ensuring that the financial management practices of the Commonwealth are upheld.
Failure to comply with the provisions of this determination could lead to financial mismanagement and potential legal repercussions. Although specific offences and penalties are not detailed within this instrument, breaches of the Financial Management and Accountability Act 1997 generally may result in both civil and criminal consequences. Civil penalties could include financial penalties or corrective orders, while criminal penalties may include fines and imprisonment, depending on the severity and intent behind the breach. The exact penalties would be determined based on the specific provisions of the FMA Act and the nature of the breach.