Overview
The Financial Management and Accountability Act 1997 was enacted to provide a framework for the management of public money and the accountability of public officers. This legislation was introduced to address the need for improved financial management practices and oversight within the Australian government, aiming to ensure that public funds are used efficiently and effectively. The Act empowers the Minister for Finance and Deregulation to determine the amendment of appropriations in response to changes in departmental functions. In 2012, a determination was made under section 32 of the Act to transfer appropriation funds from the Attorney-General’s Department to the Department of the Prime Minister and Cabinet, reflecting the government's decision to shift responsibility for Cyber Security Policy. This transfer was implemented through amendments to specific appropriation acts, reducing funds allocated to the Attorney-General’s Department and increasing those for the Department of the Prime Minister and Cabinet to accommodate the new responsibilities. The process involved consultation with the relevant departments and was subject to the legislative requirements outlined in the Legislative Instruments Act 2003.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2012/05 pertains to the transfer of certain financial functions from the Attorney-General's Department (AGD) to the Department of the Prime Minister and Cabinet (DPMC). This legislative instrument is enacted under subsection 32(2) of the Financial Management and Accountability Act 1997, which allows the Minister for Finance and Deregulation to amend appropriation acts related to the transfer of functions between government agencies. Specifically, Schedule 1 and Schedule 2 of this Determination adjust the budgetary allocations in Appropriation Act (No. 3) 2006-2007 and Appropriation Act (No. 1) 2011-2012 respectively, to reflect the transfer of responsibility for Cyber Security Policy from AGD to DPMC. The adjustments involve reducing appropriations from AGD and increasing those for DPMC. This instrument is applicable within the Commonwealth of Australia and is subject to consultation requirements under the Legislative Instruments Act 2003, ensuring that both AGD and DPMC were consulted during its preparation.
Key Provisions
The Financial Management and Accountability Act 1997 Determination 2012/05 (the Determination) involves specific amendments to the Appropriation Acts, primarily to reflect the transfer of functions from the Attorney-General’s Department (AGD) to the Department of the Prime Minister and Cabinet (DPMC). Section 32 of the FMA Act authorises the Minister for Finance to make such determinations, and this authority has been delegated to the Secretary of the Department of Finance and Deregulation, who in turn has delegated it to certain officials within the department. The primary changes are documented in Schedule 1 and Schedule 2 of the Determination. Specifically, Schedule 1 reduces the departmental item for AGD by $163,868.55 under Appropriation Act (No. 3) 2006-2007, while Schedule 2 reduces the AGD item by $554,982.00 under Appropriation Act (No. 1) 2011-2012 and increases the DPMC item by $718,850.55.
The Determination imposes obligations on the involved departments to adjust their budgetary allocations accordingly. The AGD is required to reflect the decreased appropriations, which are directly attributable to the transfer of the Cyber Security Policy to DPMC. Conversely, the DPMC must account for the increased appropriations resulting from the transfer of responsibilities. Both departments are mandated to ensure that these changes are accurately reflected in their financial records and reporting. Additionally, the Determination requires the responsible officials within the Department of Finance to ensure that the Appropriation Acts are amended correctly and that any related documentation and communications are accurate and timely.
Breaches of the provisions outlined in the Determination could potentially result in legal consequences. While the Determination itself does not explicitly outline offences or penalties, violations of the Financial Management and Accountability Act 1997 or other related legislation could result in significant civil or criminal penalties. For example, misappropriating public funds or failing to comply with financial management requirements can lead to substantial fines and, in severe cases, imprisonment. The determination underscores the importance of accurate financial management and accountability, particularly in the context of inter-departmental transfers of functions and funds.