Overview
The Financial Management and Accountability Act 1997 was enacted to provide for the management and accountability of Commonwealth finances. This Act aims to ensure that the government's financial resources are used efficiently, effectively, and economically. The 1997 Act was introduced by the Australian Parliament to address the need for improved financial management and accountability within the Commonwealth. Under section 32(2) of the FMA Act, the Minister for Finance and Deregulation has the power to determine amendments to Appropriation Acts in relation to the transfer of functions between agencies. This legislative instrument, the Financial Management and Accountability Act 1997 Determination 2012/09 – Section 32 (Transfer of Functions from SEWPaC to FaHCSIA and TREASURY), made on 16 April 2012, aims to reflect the changes in administrative arrangements by adjusting appropriations in the relevant Appropriation Acts. The policy objective is to ensure that the financial allocations are consistent with the new functional responsibilities, facilitating effective governance and management of the transferred functions.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2012/09 pertains to the transfer of specific functions and associated appropriations between government agencies. This instrument applies to the Department of Sustainability, Environment, Water, Population and Communities (SEWPaC), the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), and the Department of the Treasury (TREASURY). The determination adjusts the appropriations in the Appropriation Act (No. 1) 2010-2011 and Appropriation Act (No. 1) 2011-2012 to reflect the transfer of the Housing Affordability function from SEWPaC to FaHCSIA, and the Housing Supply Policy function from SEWPaC to TREASURY. This adjustment ensures that the financial allocations are accurately reflected in accordance with the changed administrative arrangements as of 14 December 2011. The effect is a reduction in appropriations for SEWPaC and corresponding increases for FaHCSIA and TREASURY. The instrument operates within the Commonwealth jurisdiction and is exempt from disallowance under the Financial Management and Accountability Act 1997.
Key Provisions
The Financial Management and Accountability Act 1997 Determination 2012/09 amends the Appropriation Acts (No. 1) for the years 2010-2011 and 2011-2012 to reflect the transfer of specific functions from the Department of Sustainability, Environment, Water, Population and Communities (SEWPaC) to the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and the Department of the Treasury (TREASURE) (section 32). Specifically, the amendment reduces the appropriation for the Department of the Environment, Water, Heritage and the Arts (DEWHA) by $1,077,180.03 in the 2010-2011 Act and adjusts the appropriations for SEWPaC, FaHCSIA, and TREASURY by $321,864.19, $1,112,145.37, and $286,898.85, respectively, in the 2011-2012 Act. These adjustments account for the reallocation of funds associated with the Housing Affordability function to FaHCSIA and the Housing Supply Policy function to TREASURY.
Entities affected by this Determination, namely SEWPaC, FaHCSIA, and TREASURY, must ensure that their financial records and reporting reflect these changes in appropriations as per the amended Appropriation Acts. This includes updating their budget allocations and financial planning documents to align with the new appropriations. Furthermore, these departments must comply with any additional requirements or directives issued by the relevant government authorities concerning the transfer of functions and associated funding.
Failure to adhere to the provisions of this Determination may result in non-compliance with the Financial Management and Accountability Act 1997. While the Determination itself does not explicitly outline specific offences, penalties, or civil/criminal consequences, non-compliance with the Act could lead to broader legal and administrative repercussions. The Act provides for various enforcement mechanisms, including the imposition of fines, recovery of funds, and other corrective actions as deemed appropriate by the Minister or relevant authorities. The exact penalties for non-compliance would depend on the specific nature and severity of the breach, in accordance with the general provisions of the FMA Act.