EXPLANATORY STATEMENT
Financial Management and Accountability Act 1997
FMA Act Determination 2013/03 – Section 32 (Transfer of Functions from DIAC to MRT-RRT)
Purpose of this Determination
This Determination is made under section 32 of the Financial Management and Accountability Act 1997 (FMA Act), due to the transfer of functions for the operation of the Independent Protection Assessment Office (IPAO) from the Department of Immigration and Citizenship (DIAC) to the Migration Review Tribunal and Refugee Review Tribunal (MRT-RRT).
An initial transfer of appropriations occurred under Financial Management and Accountability Act 1997 Determination 2012/27 – Section 32 (Transfer of Functions from DIAC to MRT-RRT). This Determination transfers further appropriations related to the transfer of the functions of the IPAO from DIAC to MRT-RRT.
Transfer of Functions generally
Section 32 of the FMA Act enables the Finance Minister to determine that one or more Schedules to one or more Appropriation Acts under section 32 are amended in relation to the transfer of a function from one Agency to another.
Under section 62 of the FMA Act, the Finance Minister has delegated the power in section 32 to the Secretary of the Department of Finance and Deregulation (Finance). Under section 53 of the FMA Act, the Secretary of Finance has delegated this power to certain Senior Executive Service officials within Finance.
This Determination is a legislative instrument for the purposes of section 5 of the Legislative Instruments Act 2003.
Statement of Compatibility with Human Rights
A Statement of Compatibility with Human Rights is not required for this Determination.
Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires a Statement of Compatibility with Human Rights for all legislative instruments subject to disallowance under
section 42 of the Legislative Instruments Act 2003. A determination under section 32 of the FMA Act is exempt from disallowance under subsection 32(7) of the FMA Act.
Consultation and Impact
Consistent with Part 3 of the Legislative Instruments Act 2003, DIAC and MRT-RRT were consulted in the preparation of this Determination.
Summary of Changes
This Determination affects Appropriation Acts in the following way, which results in no change to the total amount appropriated by Parliament:
Agency affected | Item affected | Appropriation Act | Transfer to $’000 | Transfer from: $’000 |
Migration Review Tribunal and Refugee Review Tribunal | Departmental item | Appropriation Act (No. 1) 2012-2013 | +13,849 | |
Department of Immigration and Citizenship | Departmental item | Appropriation Act (No. 1) 2012-2013 | | -2,546 |
Department of Immigration and Citizenship | Outcome 4, Administered item | Appropriation Act (No. 1) 2012-2013 | | -11,303 |
| | Total | +13,849 | -13,849 |
Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted to ensure sound financial management and accountability within the Australian government. This Act addresses the need for clear and efficient allocation and transfer of financial resources between various agencies. The FMA Act is administered by the Parliament of Australia, and one of its key policy objectives is to provide a robust framework for the management of public funds. In 2013, a determination under the FMA Act was made to facilitate the transfer of functions for the operation of the Independent Protection Assessment Office (IPAO) from the Department of Immigration and Citizenship (DIAC) to the Migration Review Tribunal and Refugee Review Tribunal (MRT-RRT). This Determination was necessary to ensure the appropriate reallocation of appropriations related to these transferred functions, without altering the overall amount appropriated by Parliament.
Scope and Application
The FMA Act Determination 2013/03 pertains to the transfer of appropriations related to the functions of the Independent Protection Assessment Office (IPAO) from the Department of Immigration and Citizenship (DIAC) to the Migration Review Tribunal and Refugee Review Tribunal (MRT-RRT). This Determination is made under section 32 of the Financial Management and Accountability Act 1997 (FMA Act) and is a legislative instrument under the Legislative Instruments Act 2003. The purpose is to effect the transfer of appropriations that were initially outlined in FMA Act Determination 2012/27, without altering the total amount appropriated by Parliament. The transfer of appropriations involves an addition of $13,849,000 to the MRT-RRT's appropriation and a corresponding deduction of $13,849,000 from DIAC's appropriation, ensuring that the overall appropriations remain unchanged. This Determination was prepared with consultation from the affected agencies, DIAC and MRT-RRT, and does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under the FMA Act.
Key Provisions
This Determination, made under section 32 of the Financial Management and Accountability Act 1997 (FMA Act), pertains to the transfer of functions for the operation of the Independent Protection Assessment Office (IPAO) from the Department of Immigration and Citizenship (DIAC) to the Migration Review Tribunal and Refugee Review Tribunal (MRT-RRT). This transfer follows an initial appropriation transfer under the FMA Act Determination 2012/27. Section 32 of the FMA Act empowers the Finance Minister to amend one or more Schedules of Appropriation Acts concerning the transfer of a function from one agency to another. This power has been delegated to the Secretary of the Department of Finance and Deregulation, who in turn has delegated it to certain Senior Executive Service officials within Finance. This Determination is a legislative instrument under the Legislative Instruments Act 2003. The Determination specifies the transfer of funds from DIAC to MRT-RRT, with an additional $13,849,000 allocated to the MRT-RRT and $2,546,000 transferred from DIAC, along with an administered item transfer of $11,303,000 from DIAC to MRT-RRT.
The obligations imposed by this Determination include the formal transfer of financial responsibilities and appropriations from DIAC to MRT-RRT, reflecting the operational shift of IPAO functions. The agencies involved must ensure that all financial records, approvals, and expenditure align with the new allocations as detailed in this Determination. This includes adjustments to budgetary planning, financial reporting, and any associated administrative processes to reflect the new funding structure. Both DIAC and MRT-RRT are required to consult and coordinate to ensure a smooth transition of the IPAO functions and their financial implications.
Breach of the obligations outlined in this Determination could lead to financial mismanagement and accountability issues. While the Determination itself does not specify offences or penalties, any failure to comply with the Financial Management and Accountability Act 1997 or its associated regulations could result in legal action, including financial penalties and potential criminal charges. The FMA Act generally provides for fines and imprisonment for serious breaches of financial management requirements, with specific penalties depending on the nature and severity of the breach. It is essential for both DIAC and MRT-RRT to adhere to the financial directives and reporting requirements to avoid any legal repercussions.