Financial Management and Accountability Act 1997 Determination 2012/07 – Section 32 (Transfer of Functions from SEWPaC to FaHCSIA and TREASURY)

Overview

The Financial Management and Accountability Act 1997 Determination 2012/07, made on 27 January 2012, was enacted to facilitate the transfer of specific appropriations from the Department of Sustainability, Environment, Water, Population and Communities (SEWPaC) to the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and the Treasury (TREASURY), aligning with changes outlined in the Administrative Arrangements Order. This determination was introduced by the Australian Parliament to address the need for financial realignment resulting from departmental function transfers. The determination was issued under the authority of the Financial Management and Accountability Act 1997, with the Finance Minister delegating the power to the Secretary of the Department of Finance and Deregulation, who in turn delegated it to specific officials within the Finance Department. The primary objective of this instrument is to amend appropriation acts to reflect the reallocation of funds in accordance with the transfer of functions, ensuring proper financial management and accountability.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2012/07 pertains to the transfer of appropriations between the Department of Sustainability, Environment, Water, Population and Communities (SEWPaC) and other departments including the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and the Department of Treasury (TREASURY). This instrument is crafted to amend several Appropriation Acts, specifically for the financial years 2010-2011 and 2011-2012, to reflect the reallocation of funds following the transfer of certain functions. The amendments include transfers of both "Departmental" and "Administered" items, as well as "Payments to States, ACT, NT and local government," associated with Outcome 2, which is related to Housing Affordability. The changes are a direct consequence of adjustments to the Administrative Arrangements Order that took effect on 14 December 2011. The instrument is applicable at the Commonwealth level, impacting federal departments, and is exempt from disallowance, thereby not requiring a statement of compatibility under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Financial Management and Accountability Act 1997 Determination 2012/07 (the Determination) primarily involves the transfer of appropriations from the Department of Sustainability, Environment, Water, Population and Communities (SEWPaC) to the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and the Treasury (TREASUREY). Section 32 of the Financial Management and Accountability Act 1997 (FMA Act) enables the Minister for Finance and Deregulation to determine the amendment of Appropriation Acts in relation to the transfer of functions from one agency to another. This Determination implements these transfers through Schedules 1, 2, and 3 of the Appropriation Act (No. 1) 2010-2011 and Appropriation Act (No. 2) 2011-2012. Schedule 1 transfers $4,288,864.53 from the Departmental item for SEWPaC to the Departmental item for FaHCSIA. Schedule 2 transfers $2,141,834.33 and $118,256,834.04 from SEWPaC to FaHCSIA, and $988,729.12 from SEWPaC to TREASURY. Schedule 3 transfers $30,000,000.00 from SEWPaC to FaHCSIA for Payments to States, ACT, NT, and local government related to Housing Affordability. The obligations and requirements imposed by the Determination on the entities involved are primarily administrative in nature. The Secretary of the Department of Finance and Deregulation, who has been delegated the power to make these amendments under section 62 of the FMA Act, must ensure the accuracy and legality of the appropriations transfers. The affected departments must adhere to the new allocations as reflected in the amended Appropriation Acts, which will be reflected in their financial planning and reporting requirements. This involves updating internal systems, ensuring compliance with budgetary constraints, and reporting the new allocations to relevant oversight bodies. There are no specific offences, penalties, or civil/criminal consequences outlined in the Determination itself for breaches of the appropriations transfers. However, any misuse of the transferred funds would fall under broader financial management and accountability laws. For example, if funds are misappropriated, the responsible officials could face disciplinary action under their respective agencies' policies, and severe cases could lead to criminal charges under the Criminal Code Act 1995. The Determination, being a legislative instrument, is exempt from disallowance under subsection 32(7) of the FMA Act, which means it cannot be overturned by a resolution of either House of Parliament. As such, compliance with the appropriations transfers as specified is legally binding and enforceable through the standard financial oversight mechanisms.