Financial Management and Accountability Act 1997 Determination 2013/04 – Section 32 (Transfer of Functions from Health to NHFB)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted by the Parliament of Australia to provide a framework for the financial management of Commonwealth entities. This Act was designed to address the need for improved financial accountability and management across the Australian government, ensuring that public funds are used efficiently and effectively. The FMA Act Determination 2013/04, made under section 32 of the FMA Act, facilitates the transfer of functions from the Department of Health and Ageing to the newly established National Health Funding Body (NHFB) on 25 June 2012. This Determination ensures that the transfer of these functions does not alter the total amount appropriated by Parliament, as it merely reallocates funds within the appropriation acts. The purpose of this Determination is to amend relevant Appropriation Acts to reflect the transfer of functions, without any change to the overall financial allocations.

Scope and Application

The FMA Act Determination 2013/04, made under section 32 of the Financial Management and Accountability Act 1997, facilitates the transfer of functions from the Department of Health and Ageing to the newly established National Health Funding Body (NHFB) on 25 June 2012. This determination outlines the necessary amendments to relevant Appropriation Acts to reflect this transfer without altering the total amount appropriated by Parliament. The power to make this determination lies with the Secretary of the Department of Finance and Deregulation, who has delegated it to certain Senior Executive Service officials within Finance. This determination is a legislative instrument under the Legislative Instruments Act 2003, but it is exempt from disallowance under section 32(7) of the FMA Act, hence no Statement of Compatibility with Human Rights is required. The process of making this determination involved consultation with both Health and NHFB, as mandated by Part 3 of the Legislative Instruments Act 2003. The changes involve a transfer of $5,520,000 from the Department of Health and Ageing to the NHFB, affecting specific items within the Appropriation Act (No. 1) 2012-2013.

Key Provisions

The main operative sections of the FMA Act Determination 2013/04 (Section 32) involve the transfer of functions from the Department of Health and Ageing (Health) to the newly established National Health Funding Body (NHFB) (section 32). This transfer is implemented without altering the total amount appropriated by Parliament, as outlined in the summary of changes (section 32). This determination facilitates the reallocation of functions and associated appropriations between the two entities, ensuring a smooth transition and continuity of financial management (section 32). The Act imposes specific obligations on the parties involved in this transfer. Firstly, it mandates that the Finance Minister, under section 32, determine amendments to the relevant Appropriation Acts to reflect the transfer of functions from Health to NHFB. Additionally, the Secretary of Finance, as delegated by the Minister under section 62, has the authority to carry out these amendments, with further delegation to Senior Executive Service officials within the Department of Finance and Deregulation under section 53. This hierarchical delegation ensures that the transfer process is executed with the necessary approvals and oversight. Failure to comply with the provisions of this Determination could lead to administrative or financial discrepancies. However, the Determination itself does not explicitly outline specific offences or penalties for non-compliance. It is implied that adherence to the determination is crucial for maintaining accurate financial records and ensuring the integrity of the transfer process. The overarching legislation, the Financial Management and Accountability Act 1997, would likely govern any breaches of financial management principles that might arise from non-compliance with the Determination. There are no outlined civil or criminal consequences in this Determination itself, but any breaches of the Financial Management and Accountability Act 1997 could lead to penalties as prescribed under that Act. The Act generally provides for enforcement through the courts, including potential fines or other sanctions for serious breaches of financial management regulations. Given that this Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003, it operates within the framework of existing financial legislation to ensure that the transfer of functions is both legally sound and financially accountable.