Financial Management and Accountability Act 1997 Determination 2012/12 – Section 32 (Transfer of Functions from ORER to CER)

Overview

The Financial Management and Accountability Act 1997 Determination 2012/12, made on 17 April 2012, addresses the transfer of functions and associated appropriations from the Office of the Renewable Energy Regulator (ORER) to the Clean Energy Regulator (CER) under the authority of the Financial Management and Accountability Act 1997 (FMA Act). This determination was enacted by the Australian Government to facilitate the establishment of the CER and to realign the administration of the national renewable energy target scheme with the new regulator. The instrument, prepared under the delegated authority of the Secretary of the Department of Finance and Deregulation, involves amendments to Appropriation Acts to reflect the transfer of financial resources required to support the CER's functions. This transfer includes reductions in ORER's departmental and administered items, alongside increases in CER's respective items, thereby ensuring that the financial provisions align with the operational changes necessitated by the government's policy shift.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2012/12 pertains to the transfer of functions from the Office of the Renewable Energy Regulator (ORER) to the Clean Energy Regulator (CER) and involves amendments to appropriation acts to reflect this change. The determination applies to the Finance Minister, who has the authority to make amendments under section 32(2) of the FMA Act, and to the relevant appropriation acts for the fiscal years 2010-2011 and 2011-2012. It is designed to facilitate the reallocation of funds and administrative responsibilities as part of the government’s decision to establish the CER and transfer the functions related to the national renewable energy target scheme. This legislation affects the two regulatory entities directly, and the financial implications are reflected in the adjustment of departmental and administered items in the appropriation acts. The instrument also ensures consultation with ORER and CER in its preparation, in line with the requirements of the Legislative Instruments Act 2003.

Key Provisions

The Financial Management and Accountability Act 1997 Determination 2012/12, made under section 32(2) of the FMA Act, pertains to the transfer of functions from the Office of the Renewable Energy Regulator (ORER) to the Clean Energy Regulator (CER). This determination, which was enacted on 17 April 2012, adjusts appropriations in response to the government's decision to establish the CER and shift the responsibilities of administering and regulating the national renewable energy target scheme from ORER to CER. The amendments are detailed in Schedules 1, 2, and 3 of the Determination, which modify the Appropriation Acts for the fiscal years 2010-2011 and 2011-2012. Section 62 of the FMA Act empowers the Minister for Finance and Deregulation to make this determination, a power that has been delegated by the Secretary of the Department of Finance and Deregulation to specific officials within the department. Schedule 1 reduces the departmental item for ORER by $5,000,000.00, while Schedule 2 reduces the departmental item for ORER by $4,000,000.00 and increases the departmental item for CER by $9,000,000.00, with an additional transfer of $2,000,000.00 from ORER to CER's administered item for Outcome 1. Schedule 3 further transfers $3,000,000.00 from ORER's administered item for "Equity Injections" to CER's corresponding item. The determination outlines clear obligations for both ORER and CER, necessitating adjustments to their funding allocations to reflect the new division of responsibilities. ORER is required to relinquish certain funds, while CER must account for the additional appropriations received, ensuring that the financial implications of the function transfer are accurately reflected in their respective budgets. This includes meticulous record-keeping and reporting to ensure compliance with the amended appropriations. Non-compliance with the provisions set out in the Financial Management and Accountability Act 1997 Determination 2012/12 could potentially result in legal and financial repercussions for ORER and CER. Given that the determination is exempt from disallowance under subsection 32(7) of the FMA Act, any breaches may not be subject to the same scrutiny as other legislative instruments. However, failure to adhere to the prescribed financial adjustments could lead to financial mismanagement and accountability issues, potentially resulting in penalties or sanctions as per other relevant laws and regulations.