Financial Management and Accountability Act 1997 Determination 2013/08 – Section 32 (Transfer of Functions from DRET to Industry)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted by the Parliament of Australia to provide a framework for the management and accountability of Commonwealth finances. The Act was introduced to address the need for a unified approach to the financial management of government agencies, ensuring transparency, efficiency, and accountability in the use of public funds. In 2013, a determination was made under section 32 of the FMA Act to adjust appropriations in response to the Administrative Arrangements Order that transferred functions from the Department of Resources, Energy and Tourism (DRET) to the Department of Industry. This interim measure facilitated the transfer of appropriations as DRET was abolished, with its functions being absorbed by the Department of Industry. The determination did not alter the total amount appropriated by Parliament, merely reallocating funds between the affected departments to ensure continuity in service delivery.

Scope and Application

The FMA Act Determination 2013/08 pertains to the transfer of functions from the Department of Resources, Energy and Tourism (DRET) to the Department of Industry, as mandated by the Administrative Arrangements Order of 18 September 2013. The Determination adjusts appropriations in the Appropriation Act (No. 1) 2013-2014 as an interim measure to support the transition of DRET’s functions to the Department of Industry. This includes the transfer of specific appropriations, such as the $146,000 adjustment from DRET’s Outcome 1 to the Department of Industry’s Outcome 5, ensuring a seamless financial transition without altering the total amount appropriated by Parliament. The Determination is made under section 32 of the Financial Management and Accountability Act 1997 and is a legislative instrument for the purposes of the Legislative Instruments Act 2003. Notably, a Statement of Compatibility with Human Rights is not required for this Determination, as it is exempt from disallowance under subsection 32(7) of the FMA Act.

Key Provisions

The Determination under section 32 of the Financial Management and Accountability Act 1997 (FMA Act) (sections 32 and 62) pertains to the adjustment of appropriations in response to the transfer of functions from the Department of Resources, Energy and Tourism (DRET) to the Department of Industry (Industry). This transfer is an interim measure, with further adjustments to follow. The primary effect of the Determination is to reallocate a sum of $146,000,000 from DRET's Outcome 1 to Industry's Outcome 5, without altering the overall appropriations made by Parliament. The Determination imposes certain obligations on the Department of Finance (Finance) and the involved departments, namely DRET and Industry. It mandates Finance to make the necessary amendments to the appropriations as detailed in Schedule 1 of the Appropriation Act (No. 1) 2013-2014. The departments must ensure the smooth transition of functions and the appropriate allocation of funds as stipulated by the Determination. Industry is required to take over the functions previously managed by DRET, and both departments must comply with the new allocation of funds as detailed. In terms of consequences for non-compliance, the Determination itself does not explicitly outline specific offences, penalties, or civil/criminal consequences. However, the FMA Act provides a framework within which breaches of the provisions could lead to legal actions. Under the FMA Act, failure to adhere to financial management and accountability requirements could result in civil or criminal penalties, depending on the severity of the breach. For instance, officers or employees who misappropriate funds or fail to comply with financial management directives could face fines or imprisonment. Nonetheless, the specific penalties would be determined in the context of the broader legal framework and any additional regulations or guidelines that may apply.