EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance and Deregulation
FMA Act Determination 2008/36— Section 32 (Transfer of Functions from FaHCSIA to DEEWR)
Subsection 32(2) of the Financial Management and Accountability Act 1997 (FMA Act) provides that the Minister for Finance and Deregulation (Finance Minister) may, by determination, amend Schedules to annual Appropriation Acts to transfer appropriations in connection with the transfer of a function between agencies under the FMA Act. The determination has the effect of amending the Schedules concerned in accordance with the determination.
This power has been delegated from the Finance Minister to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act.
This transfer reflects the Administrative Arrangements Order of 25 January 2008, made by the Governor-General in Council, which resulted in changes in the administrative arrangements of the Commonwealth. As a result of these changes various annual Appropriation Acts require amendment in order to reflect the changes in matters dealt with by departments.
The purpose of this Determination is to allow a transfer of appropriations from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to the Department of Education, Employment and Workplace Relations (DEEWR). The appropriation amounts transferred are as follows:
- From annual Appropriation Act (No. 1) 2005-2006 an amount of $4,542,230.73 of the departmental item for FaHCSIA to the departmental item for DEEWR.
- From annual Appropriation Act (No. 1) 2007-2008 an amount of $30,799,043.20 of the departmental item for FaHCSIA to the departmental item for DEEWR.
- From annual Appropriation Act (No. 4) 2007-2008 an amount of $1,527,404.00 of the other departmental item for FaHCSIA to the other departmental item for DEEWR.
In accordance with the Legislative Instruments Act 2003, FaHCSIA and DEEWR were consulted in the preparation of this instrument.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The FMA Act Determination 2008/36, enacted under the Financial Management and Accountability Act 1997, was introduced to facilitate the transfer of appropriations between the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and the Department of Education, Employment and Workplace Relations (DEEWR). This legislative instrument was necessitated by the Administrative Arrangements Order of 25 January 2008, which reorganised the administrative arrangements of the Commonwealth and required corresponding amendments in the annual Appropriation Acts. The determination, issued by the authority of the Minister for Finance and Deregulation, allows for the transfer of specific appropriation amounts from FaHCSIA to DEEWR, as outlined in the various annual appropriation acts. The objective of this determination is to ensure that the financial allocations are accurately reflected in the annual appropriation acts following the administrative changes.
Scope and Application
The FMA Act Determination 2008/36 pertains to the transfer of appropriations between the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and the Department of Education, Employment and Workplace Relations (DEEWR) as a result of the administrative changes following the Administrative Arrangements Order of 2008. This instrument authorises the reallocation of specific funds from FaHCSIA to DEEWR in line with the adjustments necessitated by these changes. The determination applies to the appropriations from three specific annual Appropriation Acts, transferring a total of approximately $36,868,677.93 in funding from FaHCSIA to DEEWR. This includes transfers from the 2005-2006, 2007-2008 Appropriation Acts, and from the fourth Appropriation Act of the 2007-2008 financial year. The authority for this transfer is derived from subsection 32(2) of the Financial Management and Accountability Act 1997, which empowers the Minister for Finance and Deregulation to amend appropriation schedules via determination. This power has been delegated to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act. The determination has been prepared in consultation with both FaHCSIA and DEEWR, as mandated by the Legislative Instruments Act 2003, and it constitutes a legislative instrument under that Act.
Key Provisions
The FMA Act Determination 2008/36, under subsection 32(2) of the Financial Management and Accountability Act 1997 (FMA Act), allows the Minister for Finance and Deregulation to transfer appropriations between departments as part of a function transfer. This particular determination transfers appropriations from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to the Department of Education, Employment and Workplace Relations (DEEWR) in line with the Administrative Arrangements Order of 25 January 2008. Specifically, it transfers funds from the annual Appropriation Acts for the years 2005-2006 and 2007-2008 to reflect these departmental changes. The transferred amounts include $4,542,230.73 from the 2005-2006 Act, $30,799,043.20 from the 2007-2008 Act (No. 1), and $1,527,404.00 from the 2007-2008 Act (No. 4).
The obligations imposed by this determination on the parties involved are primarily procedural and ensure that the transfer of appropriations is done in a manner that reflects the new administrative arrangements. Both FaHCSIA and DEEWR were consulted in the preparation of this instrument, in accordance with the Legislative Instruments Act 2003. This consultation requirement ensures that both departments are aware of and agree to the transfer, thereby facilitating a smooth transition of funds and responsibilities. The Secretary of the Department of Finance and Deregulation, to whom the power has been delegated under section 62 of the FMA Act, must ensure that the amendments to the appropriations acts are carried out accurately and reflect the intended changes in departmental functions.
In terms of potential consequences for breaches or non-compliance, the Explanatory Statement does not specify any particular offences, penalties, or consequences for breach under this determination. However, given the legislative context, any failure to comply with the requirements of the FMA Act or the Legislative Instruments Act could result in broader legal repercussions. For instance, misallocation of funds could be subject to scrutiny under the Public Governance, Performance and Accountability Act 2013, leading to civil or administrative penalties. While the specific penalties are not outlined in this determination, adherence to the legislative framework is crucial to avoid any legal complications.