Financial Management and Accountability Act 1997 Determination 2013/11 – Section 32 (Transfer of Functions from Immigration to Social Services and Industry)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the financial management and accountability of the Commonwealth, including the allocation and control of public money. The FMA Act Determination 2013/11, made under section 32 of the FMA Act, was introduced to address the transfer of functions between government agencies resulting from the Administrative Arrangements Orders of 2013. This Determination, made by the Secretary of the Department of Finance on behalf of the Finance Minister, adjusts appropriations to support the transfer of migrant settlement, multicultural affairs, and adult education functions from the Department of Immigration and Citizenship to the Department of Social Services and the Department of Industry. The policy objective of the Determination is to ensure a smooth transition of these functions while maintaining fiscal discipline and adherence to the appropriations authorised by Parliament. The Determination involves reallocating funds between affected agencies without altering the total amount appropriated by Parliament.

Scope and Application

The FMA Act Determination 2013/11, made under section 32 of the Financial Management and Accountability Act 1997 (FMA Act), is an interim measure designed to adjust appropriations in response to the transfer of specific functions from the Department of Immigration and Citizenship to the Department of Social Services and the Department of Industry. The primary aim of this determination is to facilitate the transition of migrant settlement and multicultural affairs functions, as well as adult migrant education functions, from the former Department of Immigration and Citizenship to the Department of Social Services and the Department of Industry respectively. The adjustments to appropriations outlined in the Determination ensure that these functions are adequately funded during the interim period until the final transfer of appropriations is completed. The changes to the Appropriation Act (No. 1) 2013-2014 include an increase of $37,000 to the administered item for Outcome 9 and $3,000 to Outcome 10 for the Department of Social Services, and an increase of $50,000 to Outcome 3 for the Department of Industry. Correspondingly, the Department of Immigration and Citizenship sees a reduction of $87,000 to Outcome 5 and $3,000 to Outcome 6. These adjustments do not affect the total amount appropriated by Parliament.

Key Provisions

The FMA Act Determination 2013/11 under section 32 (Transfer of Functions from Immigration to Social Services and Industry) adjusts appropriations to facilitate the transfer of specific functions between government departments. The primary objective is to reallocate funds from the former Department of Immigration and Citizenship to the Department of Social Services for migrant settlement and multicultural affairs, and to the Department of Industry for adult migrant education. This reallocation is an interim measure until the final transfer of appropriations is completed (section 32). The Determination includes the addition of new Outcomes 9 and 10 for the Department of Social Services and an increase in Outcome 3 for the Department of Industry. These changes are intended to ensure that the necessary resources are available to support the new responsibilities of the respective departments. The Determination imposes obligations on the affected departments to ensure that they manage the reallocated funds in accordance with the provisions of the FMA Act and the Appropriation Act (No. 1) 2013-2014. The Department of Social Services must utilise the additional funds for activities related to migrant settlement and multicultural affairs as outlined in the former Department of Immigration and Citizenship’s Portfolio Budget Statements for Outcomes 5 and 6. Similarly, the Department of Industry must use the increased funds for adult migrant education activities, as indicated in the former Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education’s Portfolio Budget Statements. These obligations are detailed in Table 13 of the Determination and must be adhered to for the effective management of the transferred functions. Breach of the provisions outlined in the Determination may lead to legal and financial consequences. Although specific offences and penalties are not detailed in the Determination itself, any failure to comply with the FMA Act or the Appropriation Act could result in civil or criminal liability under the relevant Acts. The FMA Act includes provisions for penalties in cases of non-compliance with financial management and accountability standards, which could potentially include fines or other penalties as determined by the courts. The Appropriation Act (No. 1) 2013-2014 also contains enforcement provisions that may be invoked in cases of misuse of appropriated funds. It is important for the departments to ensure strict adherence to these legislative requirements to avoid any potential repercussions.