EXPLANATORY STATEMENT
Financial Management and Accountability Act 1997
FMA Act Determination 2013/10 — Section 32 (Transfer of Functions from DRET to Industry) (the Determination)
Purpose of the Determination
The Determination is made under section 32 of the Financial Management and Accountability Act 1997 (FMA Act), to adjust amounts appropriated to particular agencies in response to the Administrative Arrangements Order made on 18 September 2013 and the amendment to the Administrative Arrangements Order made on 3 October 2013.
The amendment to the Administrative Arrangements Order on 3 October 2013 transferred tourism functions to the Department of Foreign Affairs and Trade.
The Determination further adjusts appropriations to support resources and energy functions that transferred from the abolished Department of Resources, Energy and Tourism (DRET) to the Department of Industry (Industry).
The Determination relates to a second transfer of appropriations. An initial transfer of appropriations relating to the transfer of functions in relation to the Administrative Arrangements Order occurred on 20 September 2013 under FMA Act Determination 2013/08 — Section 32 (Transfer of Functions from DRET to Industry).
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 are amended in a specified way 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 to make determinations under section 32 to the Secretary of the Department of Finance, who has then sub‑delegated this power to certain Senior Executive Service officials within the Department of Finance, including the official who made the Determination.
The 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 the 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. As such, a Statement of Compatibility with Human Rights is not required.
Consultation and Impact
Consistent with Part 3 of the Legislative Instruments Act 2003, Industry was consulted in the preparation of the Determination.
Summary of Changes
The Determination affects Schedule 1 to the Appropriation Act (No. 1) 2013-2014 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) |
Department of Industry | Administered item, Outcome 5 | Appropriation Act (No. 1) 2013-2014 | +292,000 | |
Department of Resources, Energy and Tourism | Administered item, Outcome 1 | Appropriation Act (No. 1) 2013-2014 | | -292,000 |
| | Total | +292,000 | -292,000 |
Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the financial management and accountability of Commonwealth entities, ensuring transparency and proper control over public funds. The Act was introduced to address the need for a unified and comprehensive legislative framework that governs the financial management practices of Commonwealth entities, aligning with best practices and ensuring that public resources are used efficiently and effectively. The FMA Act was enacted by the Parliament of Australia, with the policy objective of promoting sound financial management and accountability across the Commonwealth public sector.
The FMA Act Determination 2013/10 — Section 32 (Transfer of Functions from DRET to Industry) was issued under the authority of the FMA Act to adjust appropriations in response to the transfer of tourism functions from the abolished Department of Resources, Energy and Tourism (DRET) to the Department of Industry. This Determination ensures that the financial resources are reallocated accordingly without affecting the total amount appropriated by Parliament, thereby maintaining fiscal integrity and supporting the efficient functioning of the new departmental arrangements.
Scope and Application
The FMA Act Determination 2013/10 — Section 32 (Transfer of Functions from DRET to Industry) applies to the appropriation of funds between the Department of Industry and the abolished Department of Resources, Energy and Tourism (DRET). The Determination is a legislative instrument made under section 32 of the Financial Management and Accountability Act 1997, which enables the Finance Minister to adjust appropriations in response to the transfer of functions between agencies. This specific Determination is in response to the Administrative Arrangements Order made on 18 September 2013, and the subsequent amendment on 3 October 2013, which transferred tourism functions to the Department of Foreign Affairs and Trade and resources and energy functions to the Department of Industry. The Determination is limited to the appropriation adjustments and does not extend to other areas of the agencies' operations or to other legislation. The power to make this Determination has been delegated by the Finance Minister to the Secretary of the Department of Finance, who in turn has sub-delegated this power to certain Senior Executive Service officials within the Department of Finance.
Key Provisions
The FMA Act Determination 2013/10, specifically Section 32, pertains to the transfer of functions from the Department of Resources, Energy and Tourism (DRET) to the Department of Industry. The main objective of the Determination (section 32) is to adjust appropriations within specific agencies following administrative changes. This includes an adjustment in appropriations to support resources and energy functions that were transferred from DRET to the Department of Industry. The transfer of appropriations is a response to the Administrative Arrangements Order made on 18 September 2013, and its subsequent amendment on 3 October 2013. The Determination ensures that the total appropriation amount remains unchanged, despite the reallocation between departments.
Under this Determination, the obligations and requirements primarily revolve around the adjustments of appropriations to align with the changes in departmental functions. The Finance Minister, under section 32 of the FMA Act, has the authority to adjust appropriations in the Schedules to the Appropriation Acts as necessary. The Secretary of the Department of Finance has delegated this authority to certain Senior Executive Service officials within the department, who are responsible for implementing the Determination. The Department of Industry was consulted in the preparation of the Determination, ensuring that the changes are well-considered and aligned with current administrative structures.
The Determination does not specify any particular offences or penalties for breaches, as it primarily deals with the reallocation of funds rather than regulatory compliance. However, any breach of the FMA Act, which governs this Determination, could lead to civil or criminal consequences under the general provisions of the Act. The FMA Act includes provisions for enforcement and penalties, but the Determination itself does not introduce new penalties or consequences. The total amount appropriated by Parliament remains unaffected by the Determination, ensuring fiscal responsibility and compliance with budgetary processes.
In summary, the FMA Act Determination 2013/10 (section 32) involves the transfer of appropriations from DRET to the Department of Industry, reflecting the reallocation of tourism and resources functions. It outlines the adjustments necessary to comply with the administrative changes, ensuring that the overall appropriation remains consistent. The Determination imposes specific obligations on the Department of Finance and the Department of Industry to manage these appropriations effectively, with no new penalties introduced by the Determination itself.