Overview
The Financial Management and Accountability Act 1997 (FMA Act) serves as the legislative foundation for managing and ensuring accountability in financial operations within Australian government agencies. Enacted by the Australian Parliament, the FMA Act aims to provide a robust framework for the financial management of public money and to ensure transparency and accountability in the use of public funds. One specific instrument under this Act, the Financial Management and Accountability Act 1997 Determination 2012/15 – Section 32 (Transfer of Functions from FaHCSIA to DEEWR), was made on 27 April 2012. This determination facilitates the transfer of appropriations and functions between different government departments, addressing the need for financial re-allocations due to changes in administrative arrangements. In this case, the determination transferred secretariat support funding for Early Childhood Australia from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to the Department of Education, Employment and Workplace Relations (DEEWR), reflecting a shift in administrative responsibilities. The enactment body, the Parliament of Australia, aims to streamline and rationalise the financial operations across departments to better align with their evolving mandates and priorities.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2012/15 pertains to the transfer of appropriations relating to secretariat support funding for Early Childhood Australia from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to the Department of Education, Employment and Workplace Relations (DEEWR). This determination, made under the authority of the Financial Management and Accountability Act 1997, is intended to facilitate the transfer of a specific amount of $271,421.00, which is part of the administered item alongside Outcome 3 for FaHCSIA, to the administered item alongside Outcome 1 for DEEWR. The transfer was necessitated by a change in the Administrative Arrangements Order on 14 October 2010, which required the reallocation of the secretariat support funding. Both FaHCSIA and DEEWR were consulted in the preparation of this instrument, and it is a legislative instrument as defined in the Legislative Instruments Act 2003. This determination does not require a statement of compatibility with human rights, as it is exempt from disallowance under the Financial Management and Accountability Act 1997.
Key Provisions
The Financial Management and Accountability Act 1997 Determination 2012/15 primarily serves to amend the Appropriation Act (No. 1) 2011-2012 by transferring specific funds and related functions. Specifically, section 32 of the FMA Act empowers the Minister for Finance and Deregulation to make amendments to appropriation acts to facilitate the transfer of functions from one government agency to another. In this case, the determination transfers $271,421.00 from the administered item alongside Outcome 3 for the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to the administered item alongside Outcome 1 for the Department of Education, Employment and Workplace Relations (DEEWR). This adjustment aligns with the reallocation of secretariat support funding for Early Childhood Australia, as mandated by changes in the Administrative Arrangements Order.
The obligations and requirements imposed by this Act are primarily administrative. The Secretary of the Department of Finance and Deregulation, as well as certain officials within the department, are tasked with the responsibility of making the necessary amendments to the appropriation act. These amendments must reflect the functional shifts between departments accurately and ensure that financial resources are appropriately allocated in line with the government's current administrative structure. The consultations with FaHCSIA and DEEWR during the preparation of this instrument underscore a commitment to transparency and stakeholder involvement in the legislative process.
In terms of compliance and enforcement, breaches of the provisions outlined in the FMA Act could lead to serious consequences. While the specific penalties for non-compliance are not detailed in the provided explanatory statement, it is evident that the act takes a stringent approach to ensuring proper financial management and accountability. The legislative framework implies that unauthorised or improper transfers of funds could result in civil or criminal penalties, depending on the nature and severity of the breach. The exemption from disallowance under subsection 32(7) of the FMA Act highlights the critical nature of these financial management provisions, reinforcing the importance of adhering to the stipulated processes and requirements.