Overview
The Financial Management and Accountability Act 1997 Determination 2012/16 was enacted to address the administrative necessity of transferring financial responsibilities and appropriations between government agencies in light of structural changes within the public service. This legislative instrument, made on 19 April 2012, amends the Appropriation Act (No. 1) 2011-2012 to facilitate the reallocation of a $38,145,000.00 appropriation from the Department of the Prime Minister and Cabinet (DPMC) to the Department of Regional Australia, Local Government, Arts and Sport (DRALGAS). This transfer is a consequence of the government's decision to reassign the Arts, Culture and Sport functions from DPMC to DRALGAS. The enactment of this instrument aligns with the provisions of section 32(2) of the FMA Act, which empowers the Minister for Finance and Deregulation to modify appropriations in such circumstances, a delegation that extends to the Secretary of the Department of Finance and Deregulation. The purpose of this instrument is to ensure a smooth transition of financial obligations and administrative duties, reflecting the government's organisational changes.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2012/16, specifically Section 32 concerning the transfer of functions from the Department of the Prime Minister and Cabinet (DPMC) to the Department of Regional Australia, Local Government, Arts and Sport (DRALGAS), applies to the specified transfer of financial responsibilities as outlined in the Appropriation Act (No. 1) 2011-2012. This legislation governs the transfer of $38,145,000.00 of the Australia Council's body payment item, reflecting a governmental decision to reassign the Arts, Culture, and Sport functions from DPMC to DRALGAS. The authority to make such determinations is rooted in the Financial Management and Accountability Act 1997, with the power delegated through a series of officials within the Department of Finance and Deregulation, ultimately resting with the Finance Minister. This transfer is a direct result of administrative restructuring aimed at realigning governmental functions and ensuring appropriate financial accountability. The instrument was meticulously prepared with consultation from both DPMC and DRALGAS, ensuring that the transition is managed in a manner that respects the legislative requirements and the intended purpose of the financial reallocation.
Key Provisions
The main operative sections of the Financial Management and Accountability Act 1997 Determination 2012/16 (referred to as 2012/16) concern the transfer of appropriations between the Department of the Prime Minister and Cabinet (DPMC) and the Department of Regional Australia, Local Government, Arts and Sport (DRALGAS). Specifically, Section 32 of the FMA Act allows the Minister for Finance and Deregulation to determine the amendment of appropriations related to the transfer of a function from one agency to another. Section 62 further delegates this authority to the Secretary of the Department of Finance and Deregulation, while Section 53 allows for delegation to certain officials within that department. The determination transfers $38,145,000.00 of the CAC Act body payment item for the Australia Council from DPMC to DRALGAS, as detailed in Schedule 1 of 2012/16.
The obligations imposed by this determination are primarily administrative and financial. Both DPMC and DRALGAS must ensure that the transfer of appropriations is accurately reflected in their respective financial records and reports. They are also responsible for ensuring that the funds are used in accordance with the purposes for which they were allocated. The determination does not impose additional regulatory obligations beyond those already stipulated by the FMA Act and other relevant legislation.
There are no specific offences or penalties outlined in the 2012/16 determination itself. However, breaches of the FMA Act or any other relevant legislation could lead to civil or criminal consequences. For example, unauthorised use of funds or failure to comply with financial management regulations could result in fines, legal action, or other penalties as stipulated in the respective laws. The maximum penalties for such breaches are detailed within the FMA Act and would depend on the specific nature of the offence. The 2012/16 determination ensures that the transfer of appropriations is carried out in a lawful and transparent manner, thereby mitigating the risk of unauthorised or improper use of funds.