Financial Management and Accountability Act 1997 Determination 2012/08 - Section 32 (Transfer of Functions from DPMC and HEALTH to NMHC)

Overview

The Financial Management and Accountability Act 1997 was enacted to provide for the proper financial management and accountability of Commonwealth agencies. This Act aims to ensure that funds are managed efficiently, effectively, and in compliance with relevant legislation. The Act was introduced to address the need for a robust framework governing the financial operations and accountability of Commonwealth entities, particularly in the context of budget allocations and expenditure. The Act was enacted by the Parliament of Australia, reflecting the policy objective of maintaining fiscal discipline and transparency in the management of public funds. The 2012 Determination under this Act facilitates the transfer of specific financial appropriations from the Department of the Prime Minister and Cabinet and the Department of Health and Ageing to the National Mental Health Commission, reflecting the reallocation of responsibilities in line with the Commission's establishment and operational scope.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2012/08 pertains to the transfer of appropriations and functions related to the National Mental Health Commission (NMHC) and the National Report Card. This instrument applies to the Department of the Prime Minister and Cabinet (DPMC) and the Department of Health and Ageing (HEALTH), and it governs the financial implications and administrative adjustments necessary for the transfer of specific functions and appropriations to the NMHC. The determination is applicable to the Commonwealth of Australia, specifically targeting financial management and accountability within the federal government framework. The transfers outlined in this instrument include specific departmental and administered items, reflecting the reallocation of budgetary responsibilities. This legislation does not specify exclusions or exemptions, and it extends its application through the amendment of the relevant appropriation acts, ensuring the seamless transition of functions and funds.

Key Provisions

The main operative sections of the Financial Management and Accountability Act 1997 Determination 2012/08, specifically Schedules 1 and 2, involve the transfer of certain appropriations and funding from the Department of the Prime Minister and Cabinet (DPMC) and the Department of Health and Ageing (HEALTH) to the National Mental Health Commission (NMHC). Schedule 1 amends the Appropriation Act (No. 1) 2011-2012, transferring $787,559.00 from the departmental item for DPMC to the departmental item for NMHC, $1,531,000.00 from the administered item alongside Outcome 1 for DPMC to the administered item alongside Outcome 1 for NMHC, and $450,000.00 from the administered item alongside Outcome 11 for HEALTH to the administered item alongside Outcome 1 for NMHC. Schedule 2 amends the Appropriation Act (No. 2) 2011-2012 to transfer $171,722.00 from the departmental non-operating item for DPMC to the departmental item for NMHC. The obligations imposed by this Act on the relevant parties include ensuring that the specified appropriations and funding are correctly transferred from the originating departments to the NMHC. This transfer is to align with the change in responsibility for the National Mental Health function and the development of the National Report Card. The Act also requires that the departments involved in the transfer, namely DPMC, HEALTH, and NMHC, have been consulted and have provided input in the preparation of the instrument. The Financial Management and Accountability Act 1997 Determination 2012/08 does not explicitly state any offences, penalties, or consequences for breach. However, the failure to comply with the appropriation transfers specified in the Act could potentially lead to financial mismanagement or legal challenges regarding the allocation and use of public funds. Given that the instrument is exempt from disallowance, it is not subject to the usual scrutiny that might lead to penalties or sanctions for non-compliance. Nonetheless, any misapplication or mismanagement of the transferred funds could be subject to review and potential action under other related financial management laws.