Financial Management and Accountability Act 1997 Determination 2012/04 – Section 32 (Transfer of Functions from DPMC to DEFENCE)

Overview

The Financial Management and Accountability Act 1997 Determination 2012/04, enacted on 27 January 2012, was introduced to facilitate the transfer of functions and appropriations between government departments. This instrument was developed under the authority of the Financial Management and Accountability Act 1997 (FMA Act) and was designed to amend Appropriation Acts in response to changes in administrative arrangements. Specifically, the determination reduces funding for the Department of the Prime Minister and Cabinet (DPMC) and increases it for the Department of Defence (DEFENCE) to reflect the transfer of the National Security Grants Program. This transfer was necessitated by a change to the Administrative Arrangements Order dated 14 December 2011. The determination was made in consultation with DPMC and other relevant departments, ensuring that the changes are implemented smoothly and in line with current administrative practices.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2012/04, issued on 27 January 2012, pertains to the transfer of functions from the Department of the Prime Minister and Cabinet (DPMC) to the Department of Defence (DEFENCE), specifically relating to the National Security Grants Program. This instrument amends the Appropriation Act (No. 1) 2010-2011 and the Appropriation Act (No. 1) 2011-2012, reducing funding allocations for DPMC and increasing them for DEFENCE to reflect the shift in responsibilities. The changes in funding align with the change in the Administrative Arrangements Order dated 14 December 2011, and the instrument is exempt from disallowance under the Financial Management and Accountability Act 1997, thereby not requiring a statement of compatibility under the Human Rights (Parliamentary Scrutiny) Act 2011. The determination ensures that the legislative adjustments are made in accordance with the Financial Management and Accountability Act 1997, reflecting the legislative intent to streamline and clarify financial management and accountability within Australian government departments.

Key Provisions

The Financial Management and Accountability Act 1997 Determination 2012/04, specifically Section 32, pertains to the transfer of functions from the Department of the Prime Minister and Cabinet (DPMC) to the Department of Defence (DEFENCE) (Section 32(2)). This determination was made on 27 January 2012, and it amends the Appropriation Acts (No. 1) 2010-2011 and 2011-2012 to reflect the transfer of appropriations relating to the National Security Grants Program. Under the FMA Act, the Minister for Finance and Deregulation has the authority to determine such amendments, a power that has been delegated to the Secretary of the Department of Finance and Deregulation and further delegated to specific officials within that department. The obligations and requirements imposed by this Act primarily involve the re-allocation of financial resources between DPMC and DEFENCE. As per Schedule 1, the Departmental item for DPMC under the Appropriation Act (No. 1) 2010-2011 is reduced by $1,262,356.47. Similarly, Schedule 2 of the Act reduces the Departmental item for DPMC by $3,270,542.70 under the Appropriation Act (No. 1) 2011-2012, while increasing the Departmental item for DEFENCE by $4,532,899.17. These adjustments are a direct consequence of the transfer of functions concerning the National Security Grants Program, as mandated by a change in the Administrative Arrangements Order on 14 December 2011. Regarding the consequences of non-compliance, this instrument does not outline specific offences or penalties. However, given its nature as a legislative instrument, non-compliance with the provisions could lead to broader administrative or financial repercussions as defined by the FMA Act. The instrument itself is exempt from disallowance under subsection 32(7) of the FMA Act, and therefore does not require a statement of compatibility under the Human Rights (Parliamentary Scrutiny) Act 2011. The preparation of this instrument involved consultations with DPMC and other relevant entities as per the requirements of the Legislative Instruments Act 2003.