Financial Management and Accountability Act 1997 Determination 2013/07 – Section 32 (Transfer of Functions from DRALGAS to AGD, Health and DIRD)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to ensure sound financial management practices across the Australian Government. This legislation provides the framework for the appropriation of funds to government agencies, their accountability, and the management of public money. The FMA Act aims to establish a robust financial management system that ensures transparency, efficiency, and effectiveness in the use of public funds. The FMA Act Determination 2013/07 was introduced under section 32 of the FMA Act to address the reallocation of appropriations following the transfer of functions from the Department of Regional Australia, Local Government, Arts and Sport (DRALGAS) to other departments. This Determination was made by the Finance Minister under section 32 of the FMA Act and was implemented as an interim measure to facilitate the transfer of functions as outlined in the Administrative Arrangements Order of 18 September 2013. The policy objective of the Determination was to ensure a smooth transition of functions and appropriations to the Attorney-General's Department, the Department of Health, and the Department of Infrastructure and Regional Development without disrupting the overall budget appropriated by Parliament.

Scope and Application

The FMA Act Determination 2013/07, made under section 32 of the Financial Management and Accountability Act 1997, is an interim measure designed to support the transfer of functions from the abolished Department of Regional Australia, Local Government, Arts and Sport (DRALGAS) to the Attorney-General's Department (AGD), the Department of Health, and the Department of Infrastructure and Regional Development (DIRD) in response to the Administrative Arrangements Order of 18 September 2013. This determination adjusts appropriations without altering the total amount appropriated by Parliament, affecting specific items in Schedule 1 of the Appropriation Act (No. 1) 2013-2014 and the Appropriation Act (No. 2) 2013-2014. It applies to the specified agencies and outcomes outlined in the determination, transferring funds accordingly to align with the new departmental responsibilities. The geographic reach of this Act is within the Commonwealth of Australia, and it does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under the FMA Act. The determination was prepared in consultation with the affected agencies as required by the Legislative Instruments Act 2003.

Key Provisions

The FMA Act Determination 2013/07, under section 32 of the Financial Management and Accountability Act 1997 (FMA Act), outlines the adjustments to appropriations resulting from the Administrative Arrangements Order of 18 September 2013. This interim measure supports the transfer of functions from the Department of Regional Australia, Local Government, Arts and Sport (DRALGAS) to the Attorney-General's Department (AGD), the Department of Health, and the Department of Infrastructure and Regional Development (DIRD) (section 32). The former DRALGAS was abolished, with its arts functions transferred to AGD, sports and recreation functions to Health, and regional development functions to DIRD. The obligations imposed by the Determination include the reallocation of appropriations from DRALGAS to the respective new departments. Specifically, the AGD receives appropriations for arts functions, Health for sports and recreation, and DIRD for regional development. These reallocations are detailed in Schedule 1 of the Determination, where tables 4, 5, and 6 specify the new outcomes for AGD, Health, and DIRD respectively. For instance, Outcome 2 for AGD is identical to Outcome 3 for the former DRALGAS, Outcome 15 for Health matches Outcome 4 for the former DRALGAS, and Outcome 1 and Outcome 2 for DIRD are identical to the former DRALGAS’s Outcome 1 and Outcome 2. The Determination also outlines the consequences for non-compliance with the reallocation of appropriations. Although the Determination itself does not explicitly mention offences or penalties, the FMA Act, under which the Determination is made, provides for enforcement mechanisms. Typically, breaches of appropriations as outlined in the FMA Act may result in civil or criminal penalties, depending on the nature and severity of the breach. Civil penalties can include fines, while criminal penalties might involve imprisonment or fines, as stipulated under the relevant sections of the FMA Act. However, the specific penalties are not detailed in the Determination but would be determined in accordance with the FMA Act.