Financial Management and Accountability Act 1997 Determination 2012/33 - Section 32 (Transfer of Functions from DEEWR to DIISRTE)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to ensure that the Commonwealth’s finances are managed effectively and transparently, and that there is accountability for the use of public funds. The Act addresses the need for a robust framework governing the financial management and accountability of Commonwealth entities. The enacting body was the Australian Parliament, with the objective of enhancing the efficiency and effectiveness of financial management across government agencies. The Act provides the Minister for Finance with the authority to make determinations relating to the transfer of functions between departments, as well as the amendment of appropriation acts to reflect these changes. This is evidenced by the 2012 Determination, which transferred appropriations for the Tertiary Education function from the Department of Education, Employment and Workplace Relations (DEEWR) to the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE), following a change in the Administrative Arrangements Order.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2012/33 – Section 32 (Transfer of Functions from DEEWR to DIISRTE) applies to the amendment of appropriation acts to reflect the transfer of the Tertiary Education function from the Department of Education, Employment and Workplace Relations (DEEWR) to the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE). This legislation involves financial adjustments in the appropriation acts for the specified financial years to ensure that the funding allocations align with the new departmental responsibilities. The instrument affects budgetary allocations and departmental items, specifically reducing the budgetary provisions for DEEWR and increasing those for DIISRTE by corresponding amounts. This transfer was necessitated by changes in the Administrative Arrangements Order of 14 December 2011, which mandated the reallocation of the Tertiary Education function. The instrument's reach is confined to the Commonwealth level, impacting the financial management of federal departments. Notably, the instrument is exempt from disallowance, and thus, no statement of compatibility with human rights is required under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The main operative sections of this instrument pertain to the amendment of several Appropriation Acts to reflect the transfer of the Tertiary Education function from the Department of Education, Employment and Workplace Relations (DEEWR) to the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE). Specifically, Section 32 of the Financial Management and Accountability Act 1997 (FMA Act) provides the legislative authority for this transfer. This determination, in turn, is based on the Administrative Arrangements Order of 14 December 2011 which mandated the transfer of the Tertiary Education function. As a result of this transfer, the relevant appropriations for DEEWR are reduced and those for DIISRTE are increased by equivalent amounts across three Appropriation Acts (Sections 1, 2, and 3). The obligations and requirements imposed by this instrument on the relevant parties include ensuring that the appropriations are adjusted accordingly in the Appropriation Acts. This involves reducing the departmental item for DEEWR by the amounts specified and increasing the corresponding item for DIISRTE by the same amounts. Furthermore, the process requires that the adjustments be made in a manner consistent with the legislative requirements and that any changes are documented in the relevant appropriation legislation. Additionally, the Act mandates consultation with DEEWR and DIISRTE during the preparation of this instrument to ensure accuracy and fairness in the financial reallocations. There are no explicit offences, penalties, or civil/criminal consequences outlined in this instrument for breach of its provisions. However, the instrument's amendments to the Appropriation Acts are legally binding and must be adhered to by the relevant departments. Any failure to comply with these adjustments could potentially lead to financial mismanagement issues, which may attract scrutiny and corrective action under broader financial management laws. The legislative framework ensures that the financial reallocations are implemented as directed, and any deviations from these provisions could have broader implications under the FMA Act.