Overview
The Financial Management and Accountability Act 1997 was enacted to ensure proper management and accountability of Commonwealth finances and was amended to facilitate the transfer of functions between government departments. The Act provides the Minister for Finance and Deregulation with the authority to amend Appropriation Acts to reflect such transfers, as seen in the 2012 Determination concerning the transfer of functions from the Department of Education, Employment and Workplace Relations (DEEWR) to the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE). This amendment was made to align with the Administrative Arrangements Order of 14 December 2011, which mandated the transfer of higher education, skills, and vocational education policy and programs from DEEWR to DIISRTE. The purpose of this legislative instrument was to ensure that the financial allocations were correctly reflected in the Appropriation Act (No. 1) 2011-2012, thereby maintaining accurate financial records and accountability within the government.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2012/06, made under the authority of the Financial Management and Accountability Act 1997, pertains specifically to the transfer of financial functions from the Department of Education, Employment and Workplace Relations (DEEWR) to the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE). This legislative instrument, which came into effect on 24 January 2012, involves the amendment of the Appropriation Act (No. 1) 2011-2012. The purpose of this amendment is to reallocate $1,037,572,297.55, previously designated for DEEWR's Outcome 3, to DIISRTE's Outcome 3. This reallocation follows the Administrative Arrangements Order dated 14 December 2011, which necessitated the transfer of higher education, skills, and vocational education policy and programs from DEEWR to DIISRTE. The enactment of this determination ensures that the financial appropriations align with the new departmental responsibilities, facilitating effective management and accountability within the specified outcomes of the respective departments.
Key Provisions
The main operative sections of this legislation are sections 32 and 62 of the Financial Management and Accountability Act 1997 (FMA Act), which provide the legal framework for the transfer of functions and associated appropriations between government agencies. Section 32(2) allows the Minister for Finance and Deregulation to determine amendments to Appropriation Acts related to the transfer of functions from one agency to another, while section 62 delegates this power to the Secretary of the Department of Finance and Deregulation. This instrument amends the Appropriation Act (No. 1) 2011-2012 to reflect the transfer of $1,037,572,297.55 from the Department of Education, Employment and Workplace Relations (DEEWR) to the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE) as a result of changes in the Administrative Arrangements Order.
The Act imposes specific obligations and requirements on the parties involved in the transfer of functions and appropriations. The Finance Minister, as the key decision-maker under section 32, must ensure that the necessary amendments to the Appropriation Act are made accurately and in accordance with the Administrative Arrangements Order. The Secretary of the Department of Finance and Deregulation, as the delegate under section 62, must oversee the implementation of these amendments. Both the DEEWR and DIISRTE must cooperate with the Department of Finance and Deregulation during the preparation of this instrument, as required by Part 3 of the Legislative Instruments Act 2003.
The legislation also addresses potential breaches and associated consequences. Section 32(7) of the FMA Act exempts this instrument from disallowance, meaning that once made, it cannot be annulled by a resolution of either House of Parliament. This exemption implies that the instrument is considered legally sound and in compliance with the FMA Act. However, if there were any procedural errors in the making of this instrument, these could be subject to judicial review. There are no explicit offences or penalties mentioned in the text, but failure to comply with the requirements of the FMA Act could potentially result in legal challenges or administrative consequences.