Overview
The Financial Management and Accountability Act 1997 was enacted to provide a framework for the financial management and accountability of Commonwealth entities, ensuring that public funds are used efficiently, effectively, and economically. The Act was introduced to address the need for improved financial oversight and control within the Australian government. Enacted by the Australian Parliament, the primary policy objective of the Act is to enhance transparency and accountability in the use of public funds. The 2012 Determination under Section 32 of the Act, specifically 2012/29, concerns the transfer of functions and appropriations from the Department of Health and Ageing to the newly established National Health Performance Authority (NHPA), reflecting the government’s decision to create NHPA as a statutory authority. This transfer is intended to support the operationalisation of NHPA, ensuring it has the necessary financial resources to fulfil its role in monitoring and reporting on the performance of the health system.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2012/29, made under the authority of the FMA Act, pertains to the transfer of specific appropriations from the Department of Health and Ageing (HEALTH) to the newly established National Health Performance Authority (NHPA). This instrument specifically reduces an amount of $29,951,498.69 from the administered item alongside Outcome 13 for HEALTH and reallocates this amount, along with an additional $12,148,000.00, to the departmental item for NHPA. Furthermore, it transfers an additional $17,803,498.69 to the administered item alongside Outcome 1 for NHPA. This transfer of appropriations is a result of the Australian Government's decision to establish NHPA as a new statutory authority, pursuant to the National Health Reform Amendment (National Health Performance Authority) Act 2011. Both HEALTH and NHPA were consulted during the preparation of this instrument, which is a legislative instrument as defined under the Legislative Instruments Act 2003. The instrument does not require a Human Rights Impact Statement, as it is exempt from disallowance under the Financial Management and Accountability Act 1997.
Key Provisions
The Financial Management and Accountability Act 1997 Determination 2012/29, specifically Schedule 1, details the transfer of appropriations from the Department of Health and Ageing (HEALTH) to the newly established National Health Performance Authority (NHPA). This amendment reduces the administered item of HEALTH by $29,951,498.69, while increasing NHPA's departmental item by $12,148,000.00 and its administered item alongside Outcome 1 by $17,803,498.69. These changes reflect the allocation of resources necessary for the establishment and operationalisation of the NHPA, as mandated by the National Health Reform Amendment (National Health Performance Authority) Act 2011.
The Act imposes obligations on both the Department of Health and Ageing and the National Health Performance Authority. The Department of Health and Ageing is required to facilitate the transfer of specified appropriations as detailed in the amended Schedule. This involves re-allocating financial resources from its existing budget to accommodate the establishment costs of NHPA. Conversely, the National Health Performance Authority must ensure that the transferred funds are utilised in accordance with its legislative mandate, which includes the performance measurement and reporting on health outcomes within Australia.
In terms of legal consequences, the Financial Management and Accountability Act 1997 provides for penalties for non-compliance with its provisions. Although specific penalties are not detailed in the Explanatory Statement, the Act generally permits the imposition of fines and other sanctions for breaches of financial management regulations. The determination itself is exempt from disallowance, meaning it cannot be overturned by Parliament, which underscores the importance of ensuring that the transfers and amendments comply with the statutory requirements and objectives of the legislation.
The delegation of powers under the Act is structured through various tiers, with the Minister for Finance and Deregulation ultimately retaining the authority to amend appropriations. This delegation process ensures that the amendments are made with appropriate oversight and in line with broader financial management policies. The consultation with both HEALTH and NHPA during the preparation of this instrument highlights the collaborative approach taken to effectuate these budgetary changes, reflecting the legislative intent to ensure that the financial reallocation supports the creation of the NHPA effectively.