Financial Management and Accountability Act 1997 Determination 2012/31 - Section 32 (Transfer of Functions from DIISRTE to ASQA & TEQSA)

Overview

The Financial Management and Accountability Act 1997 Determination 2012/31, made on 7 December 2012, was enacted to address the need to adjust appropriations for delegated regulatory functions following a change in the Administrative Arrangements Order of 14 December 2011. This change saw the transfer of certain functions under the Education Services of Overseas Students Act 2000 from the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE) to the National Vocational Education and Training Regulator (Australian Skills Quality Authority) (ASQA) and the Tertiary Education Quality and Standards Agency (TEQSA). The determination was authorised under Subsection 32(2) of the FMA Act, with the power delegated to the Secretary of the Department of Finance and Deregulation by the Minister for Finance and Deregulation. This instrument ensures the financial implications of the transfer are reflected in the appropriations allocated to the relevant departments and agencies.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2012/31 pertains to the transfer of specific functions and related appropriations from the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE) to the Australian Skills Quality Authority (ASQA) and the Tertiary Education Quality and Standards Agency (TEQSA). This instrument, made under subsection 32(2) of the Financial Management and Accountability Act 1997, involves amendments to the Appropriation Acts (No. 1) 2012-2013, (No. 5) 2011-2012, and (No. 1) 2011-2012, reflecting the reallocation of resources following the transfer of delegated regulatory functions under the Education Services of Overseas Students Act 2000. The amendments adjust the departmental items for DIISRTE, ASQA, and TEQSA to align with the new functional responsibilities. This Determination applies to the entities involved in the transfer, namely DIISRTE, ASQA, and TEQSA, and its scope is limited to the specified appropriations within the stated Appropriation Acts. It does not extend to other agencies or functions outside the scope of these appropriations.

Key Provisions

The Financial Management and Accountability Act 1997 Determination 2012/31 (the Determination) operates under section 32 of the FMA Act, which allows the Minister for Finance and Deregulation to amend Appropriation Acts to reflect the transfer of functions between agencies. This determination specifically transfers delegated regulatory functions under the Education Services of Overseas Students Act 2000 from the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE) to the Australian Skills Quality Authority (ASQA) and the Tertiary Education Quality and Standards Agency (TEQSA). This is achieved by adjusting the departmental items in the Appropriation Acts to reflect these transfers. Specifically, Schedule 1 reduces DIISRTE's departmental item by $1,548,000 in the Appropriation Act (No. 1) 2012-2013 and by $205,000 in the Appropriation Act (No. 5) 2011-2012. Concurrently, Schedule 1 increases ASQA's departmental item by $1,244,000 and TEQSA's by $304,000 in the Appropriation Act (No. 1) 2012-2013. Schedule 3 further increases ASQA's departmental item by $142,000 and TEQSA's by $63,000 in the Appropriation Act (No. 1) 2011-2012. The obligations imposed by this Determination require the Appropriation Acts to accurately reflect the financial implications of the function transfers, ensuring that the appropriations are correctly allocated between DIISRTE, ASQA, and TEQSA. These changes are necessary to ensure that the funding is aligned with the actual responsibilities and regulatory oversight duties of the agencies involved. The determination also includes a requirement for consultation with DIISRTE, ASQA, and TEQSA during its preparation, ensuring that all relevant parties are informed and have had an opportunity to provide input. The Determination itself does not specify any direct offences, penalties, or consequences for breach; however, the underlying legislation, the Financial Management and Accountability Act 1997, provides a framework for enforcement and compliance. The Act allows for the disallowance of legislative instruments that do not comply with the Act, though this Determination is exempt from disallowance under subsection 32(7). Failure to comply with the appropriations as amended by this Determination could lead to broader financial management issues, potentially resulting in investigations or corrective actions under the FMA Act.