Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the financial management and accountability of Commonwealth entities. This Act was introduced to address the need for a cohesive and transparent system of financial oversight within the federal government, ensuring that public funds are managed efficiently and effectively. The FMA Act was enacted by the Parliament of Australia, reflecting the policy objective of promoting responsible financial administration across all government departments and agencies. The 2012 Determination under Section 32 of the FMA Act pertains to the transfer of specific functions, including appropriations, from the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE) to the Department of Education, Employment and Workplace Relations (DEEWR), as necessitated by changes in the Administrative Arrangements Order. This legislative instrument aims to reallocate resources in line with the updated responsibilities of the respective departments, ensuring that financial management remains aligned with current policy directives.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2012/32 is an instrument that modifies the Appropriation Act (No. 1) 2012-2013 in response to the transfer of the Endeavour Language Teacher Fellowships function from the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE) to the Department of Education, Employment and Workplace Relations (DEEWR). This transfer was mandated by a change in the Administrative Arrangements Order of 14 December 2011. The Determination specifically adjusts the appropriations related to Outcome 2, reducing the allocated amount for DIISRTE by $1,440,000.00 and increasing it by the same amount for DEEWR. This instrument is a legislative instrument under the Legislative Instruments Act 2003 and was prepared with consultations with the relevant departments. It is exempt from disallowance, hence no Human Rights Impact Statement is required.
Key Provisions
The main operative sections of this instrument are subsections 32(2) and 62 of the Financial Management and Accountability Act 1997 (FMA Act), which empower the Minister for Finance and Deregulation to determine amendments to the Schedules of Appropriation Acts concerning the transfer of functions between agencies, and section 53, which allows for the delegation of this power to certain officials within the Department of Finance and Deregulation. The instrument itself amends Appropriation Act (No. 1) 2012-2013 by reducing the administered item for the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE) by $1,440,000.00 and increasing the administered item for the Department of Education, Employment and Workplace Relations (DEEWR) by the same amount, effectively transferring appropriations for the Endeavour Language Teacher Fellowships function from DIISRTE to DEEWR.
The obligations and requirements imposed by this Act on the relevant parties are primarily procedural and administrative. The Act mandates that the Minister for Finance and Deregulation, or a delegate, must determine any amendments to Appropriation Acts that result from a transfer of functions between agencies. This requirement ensures that appropriations are accurately reflected in the financial documentation following a change in administrative responsibilities. The Act also stipulates that such determinations must be made in accordance with the provisions set out in the FMA Act and any relevant delegations. Furthermore, the Act ensures that affected departments, DIISRTE and DEEWR in this case, are consulted during the preparation of the instrument, promoting transparency and ensuring that the departments are aware of and can respond to the changes in their financial allocations.
The instrument provides for specific civil and criminal consequences in the event of non-compliance with the Act’s provisions. While the Explanatory Statement indicates that this instrument is exempt from disallowance under subsection 32(7) of the FMA Act, it does not detail specific penalties for breaches of the Act’s provisions. Typically, the FMA Act may impose penalties for non-compliance with financial management and accountability requirements, which could include fines or other administrative sanctions. However, as the instrument itself does not specify penalties, practitioners should refer to the FMA Act or related legislation for detailed information on potential penalties and consequences for breaches.
This instrument’s purpose is to ensure that financial appropriations are correctly allocated following a transfer of functions between government departments. By amending the Appropriation Act, it guarantees that the Endeavour Language Teacher Fellowships function is appropriately funded within the new department, DEEWR, following the transfer from DIISRTE. The adjustments made to the administered items reflect the financial responsibility and authority now vested in DEEWR for this function. This legal framework ensures that financial management and accountability are upheld during departmental restructuring, maintaining the integrity of the government’s financial planning and allocation processes.