Financial Management and Accountability Act 1997 Determination 2013/06 – Section 32 (Transfer of Functions from DEEWR to Education and Employment)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) is an Australian Act of Parliament that was enacted to provide a framework for the financial management and accountability of Commonwealth entities. The FMA Act was introduced to address the need for a comprehensive and consistent approach to financial management across all Commonwealth entities, ensuring transparency, efficiency, and effectiveness in the use of public funds. The Act was enacted by the Parliament of Australia and its policy objective is to promote sound financial management practices and accountability within the Commonwealth public sector. The FMA Act Determination 2013/06 is an instrument made under section 32 of the FMA Act, which enables the transfer of appropriations due to changes in administrative arrangements. The Determination adjusts appropriations as an interim measure to support the transfer of functions from the Department of Education, Employment and Workplace Relations (DEEWR) to the Department of Education and the Department of Employment. This interim measure ensures that the transfer of functions does not disrupt the allocation of funds and that the affected departments can continue to operate effectively while the further transfer of appropriations is finalised.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) Determination 2013/06, made under section 32 of the FMA Act, facilitates the transfer of appropriations from the abolished Department of Education, Employment and Workplace Relations (DEEWR) to the newly established Department of Education (Education) and Department of Employment (Employment). This interim measure ensures that functions previously under DEEWR are immediately supported within the new departmental structures. The Determination adjusts appropriations without altering the total amount appropriated by Parliament, as outlined in Appropriation Act (No. 1) 2013-2014 and Appropriation Act (No. 2) 2013-2014. The Finance Minister, having delegated this authority to certain Senior Executive officials within the Department of Finance, authorised this Determination. Consultation with the Department of Education and Employment was conducted in line with the Legislative Instruments Act 2013. The Determination does not require a Statement of Compatibility with Human Rights, as it is exempt from disallowance under section 32(7) of the FMA Act.

Key Provisions

The key provisions of the Financial Management and Accountability Act 1997 (FMA Act) Determination 2013/06 involve the transfer of appropriations due to the Administrative Arrangements Order made on 18 September 2013 (section 32). This Determination is designed to support the functions transferred from the Department of Education, Employment and Workplace Relations (DEEWR) to the Department of Education (Education) and the Department of Employment (Employment) (section 32). Specifically, the Determination adjusts appropriations to reflect the new arrangements as outlined in Schedule 1, which allocates outcome text to Education and Employment, respectively. This ensures that each department can refer to the Portfolio Budget Statements of DEEWR to the extent applicable. The obligations imposed by the Determination require the Finance Minister to ensure that the appropriations are correctly adjusted to support the transferred functions. The Finance Minister has delegated this power to certain Senior Executive officials within the Department of Finance (section 62). This delegation is crucial for the effective implementation of the Determination, ensuring that the adjustments to appropriations are accurately reflected in the financial management of the affected departments. The affected departments, Education and Employment, were consulted in the preparation of the Determination, aligning with Part 3 of the Legislative Instruments Act 2003. The Determination also outlines specific changes to the Appropriation Acts (No. 1) 2013-2014 and (No. 2) 2013-2014, as detailed in Schedule 2. These changes include transfers of departmental and administered items between DEEWR and the new departments. For example, the Department of Education receives an increase of $110,000 in departmental items and $77,000 in administered items from Outcome 1, while the Department of Employment receives an increase of $500,000 in administered items from Outcome 1. These adjustments ensure that the total amount appropriated by Parliament remains unchanged, as the Determination results in a net transfer of $0 across both appropriation acts. There are no specific offences, penalties, or civil/criminal consequences mentioned in the Determination for breach of its provisions. However, the legislative nature of the Determination underscores the importance of compliance with the adjustments it mandates. Any failure to correctly implement the appropriations adjustments could potentially lead to financial mismanagement or non-compliance with the Financial Management and Accountability Act 1997. The Determination serves as a legislative instrument under the Legislative Instruments Act 2003, and while it is exempt from disallowance, it remains subject to scrutiny and compliance requirements to ensure the integrity of financial management practices within the affected departments.