Overview
The Financial Management and Accountability Act 1997 (FMA Act) provides a legislative framework for the management of financial resources and accountability within the Australian government. Enacted in 1997 by the Commonwealth Parliament, this Act was designed to ensure effective and efficient financial management across all government agencies. The 2012 Determination under section 32 of the FMA Act, specifically the Financial Management and Accountability Act 1997 Determination 2012/11, addresses the issue of reallocating appropriation due to a transfer of functions between the Attorney-General's Department and the Department of the Prime Minister and Cabinet. The transfer in question involved the reallocation of responsibility for Cyber Security Policy from AGD to DPMC, necessitating adjustments to the departmental appropriations to reflect this change in function and resource allocation. This instrument was developed with consultation from both AGD and DPMC, ensuring that the transfer of financial responsibility aligns with the government's policy objectives.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2012/11, as made under the authority of the Financial Management and Accountability Act 1997, pertains to the transfer of financial functions and appropriations between the Attorney-General's Department (AGD) and the Department of the Prime Minister and Cabinet (DPMC). Specifically, this Determination was enacted to reflect the reallocation of resources following a government decision to transfer responsibility for Cyber Security Policy from AGD to DPMC. The instrument amends the Appropriation Acts (No. 3) 2006-2007 and (No. 1) 2011-2012 by reducing funds from AGD and increasing funds for DPMC accordingly. The adjustment involves a reduction of $26,538.36 from AGD's departmental item in the 2006-2007 Appropriation Act and a decrease of $53,031.00 from AGD alongside an increase of $79,569.36 for DPMC in the 2011-2012 Appropriation Act. This Determination applies to these two departments within the Commonwealth government, impacting their financial allocations as per the amended appropriation acts. The instrument is exempt from disallowance and does not require a Human Rights Impact Statement as per the applicable legislation.
Key Provisions
The Financial Management and Accountability Act 1997 Determination 2012/11 (FMA Act) primarily concerns the transfer of specific functions and appropriations from the Attorney-General’s Department (AGD) to the Department of the Prime Minister and Cabinet (DPMC). Section 32 of the FMA Act allows the Minister for Finance and Deregulation to amend Appropriation Acts to reflect such transfers. This particular determination, made on 13 March 2012, amends two Appropriation Acts: the Appropriation Act (No. 3) 2006-2007 and the Appropriation Act (No. 1) 2011-2012. The intent behind these amendments is to adjust the budgetary allocations for AGD and DPMC following the government's decision to shift responsibility for Cyber Security Policy from AGD to DPMC.
Schedule 1 of the determination reduces the departmental item for AGD by $26,538.36, while Schedule 2 reduces the departmental item for AGD by $53,031.00 and increases the departmental item for DPMC by $79,569.36. These financial adjustments are directly tied to the reallocation of the Cyber Security Policy function and the associated budget. The determination underscores the importance of accurately reflecting budgetary changes to ensure financial accountability and transparency within the government.
The obligations under this Act require the Finance Minister and relevant officials to consult with AGD and DPMC during the preparation of such legislative instruments. This consultation ensures that the financial implications and operational impacts of the transfer are adequately considered and agreed upon by the affected departments. The determination also adheres to the requirements set out in the Legislative Instruments Act 2003, which mandates the involvement of the relevant departments in the legislative process.
Failure to comply with the provisions of the FMA Act or the legislative process outlined in the Legislative Instruments Act 2003 may result in legal consequences. The Financial Management and Accountability Act 1997 exempts this Determination from disallowance, as stated in subsection 32(7). This means that while the Act governs the financial management and accountability of government departments, the specific amendments made in this determination are not subject to disallowance by Parliament. The implications of breaching these provisions could include civil or administrative penalties, depending on the nature and severity of the breach.