Financial Management and Accountability Act 1997 Determination 2012/24 - Section 32 (Transfer of Functions from DCCEE to CER)

Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for the management and accountability of financial resources within the Australian government. This Act was introduced to address the need for a robust system to ensure that public funds are managed effectively, efficiently, and in accordance with established financial management standards. The Act was enacted by the Parliament of Australia, aiming to enhance financial transparency and accountability across government agencies. The 2012 Determination under the Act was made to facilitate the transfer of specific financial functions and appropriations from the Department of Climate Change and Energy Efficiency (DCCEE) to the newly established Clean Energy Regulator (CER), reflecting a strategic governmental shift in the administration of climate change and energy initiatives.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2012/24 pertains to the transfer of specific financial functions and appropriations from the Department of Climate Change and Energy Efficiency (DCCEE) to the Clean Energy Regulator (CER). This transfer of functions was necessitated by a governmental decision to establish the CER, which now administers the carbon pricing mechanism, the Renewable Energy Target, the Carbon Farming Initiative, and the National Greenhouse and Energy Reporting systems. The determination involves amending several appropriation acts to reallocate funds accordingly. For instance, it transfers $12,805,947.00 from DCCEE to CER and adjusts equity injections for both departments, reducing funds for DCCEE and increasing them for CER. The geographic reach of this Act is national, affecting federal departments and their financial operations within Australia. The Act does not specify exclusions or exemptions but is subject to adjustments through subordinate instruments as necessary for the transferred functions. This legislative instrument is exempt from disallowance and does not require a Human Rights Impact Statement.

Key Provisions

The Financial Management and Accountability Act 1997 Determination 2012/24 primarily concerns the transfer of appropriations from the Department of Climate Change and Energy Efficiency (DCCEE) to the Clean Energy Regulator (CER). Specifically, section 32 of the FMA Act allows the Minister for Finance and Deregulation to amend Appropriation Acts in relation to the transfer of functions between agencies. This instrument adjusts the appropriations for the financial years 2009-2010 and 2011-2012. Schedule 1 transfers $12,805,947.00 from the departmental item of DCCEE to CER. Schedule 2 and Schedule 3 reduce the "Equity Injections" for DCCEE by $18,977,930.49 and $1,114,859.51 respectively, while Schedule 4 increases the "Equity Injections" for CER by $20,092,790.00. These amendments reflect the government’s decision to transfer the administration of the carbon pricing mechanism and related functions from DCCEE to CER. The obligations imposed by this Determination include the administrative and financial management duties of the affected departments. The DCCEE must ensure that all transferred appropriations are accurately reflected in their financial records, while the CER must account for the new funds accordingly. Both agencies are required to adhere to the budgetary constraints set out in the amended Appropriation Acts. Furthermore, the Secretary of the Department of Finance and Deregulation is tasked with ensuring that these transfers comply with the provisions of the FMA Act and that all necessary adjustments are made to the Appropriation Acts. Failure to comply with the provisions of the FMA Act, including the amendments made by this Determination, may result in legal consequences. While the specific penalties for breaches are not detailed within this Determination, the FMA Act generally provides for both civil and criminal penalties for non-compliance with financial management and accountability requirements. These may include fines and imprisonment for serious breaches. The exact penalties would depend on the nature and severity of the breach, as outlined in the FMA Act and other relevant legislation. It is also worth noting that this instrument is exempt from disallowance, which means that it cannot be overturned by either House of Parliament.