Financial Management and Accountability Act 1997 Determination 2013/12 – Section 32 (Transfer of Functions from AusAID to DFAT)

Overview

The FMA Act Determination 2013/12 was enacted in 2013 under the Financial Management and Accountability Act 1997, addressing the administrative and financial adjustments necessitated by the abolition of the Australian Agency for International Development (AusAID) effective 1 November 2013. This legislation was introduced to facilitate the transfer of functions from AusAID to the Department of Foreign Affairs and Trade (DFAT) and ensure that appropriations were correctly allocated to support these transferred functions. The purpose of the Determination is to adjust the appropriations in the Appropriation Acts (No. 1 and No. 2) 2013-2014, maintaining the overall appropriation amount while reallocating it appropriately between DFAT and AusAID. The enacting body is the Australian Parliament, and the policy objective is to ensure smooth financial transition and accountability in the transfer of functions between government agencies. The Determination makes specific amendments to Schedule 1 and Schedule 2 of the Appropriation Acts (No. 1 and No. 2) 2013-2014, respectively. It introduces a new Outcome 4 for DFAT in Schedule 1, aligning it with Outcome 1 of AusAID, and adds a new administered assets and liabilities item for DFAT in Schedule 2. These changes ensure that the total appropriation amount remains unchanged, while reflecting the transfer of functions and associated financial responsibilities from AusAID to DFAT. The process of making this Determination was conducted in consultation with AusAID and DFAT, in accordance with the Legislative Instruments Act 2003.

Scope and Application

The FMA Act Determination 2013/12, made under section 32 of the Financial Management and Accountability Act 1997, pertains to the adjustment of appropriations following the abolition of AusAID and the transfer of its functions to the Department of Foreign Affairs and Trade (DFAT) effective 1 November 2013. This Determination modifies appropriations to support the functions transferred from AusAID to DFAT. Specifically, it introduces a new Outcome 4 for DFAT in Appropriation Act (No. 1) 2013-2014, which mirrors the text of Outcome 1 for AusAID. This Outcome should be interpreted in conjunction with note 7 of the Appropriation Act (No. 1) 2013-2014, indicating that the new Outcome 4 includes activities detailed in the relevant Portfolio Budget Statements for AusAID. Furthermore, the Determination creates a new administered assets and liabilities item for DFAT in Appropriation Act (No. 2) 2013-2014. This legislative instrument, which is not subject to disallowance, was developed following consultations with AusAID and DFAT, and it ensures no change to the total amount appropriated by Parliament.

Key Provisions

The Financial Management and Accountability Act 1997 (FMA Act) includes a provision under section 32 that allows the Finance Minister to adjust appropriations to particular agencies in response to the transfer of functions between agencies. The FMA Act Determination 2013/12 is an example of this, which adjusts appropriations to support functions transferring from the Australian Agency for International Development (AusAID) to the Department of Foreign Affairs and Trade (DFAT) effective 1 November 2013. This Determination affects the Appropriation Act (No. 1) 2013-2014 and the Appropriation Act (No. 2) 2013-2014. In the Appropriation Act (No. 1) 2013-2014, the Determination inserts a new Outcome 4 for DFAT, which is identical to Outcome 1 for AusAID, and adjusts the departmental items accordingly (section 1). In the Appropriation Act (No. 2) 2013-2014, the Determination creates a new administered assets and liabilities item for DFAT, transferring the administered assets and liabilities from AusAID to DFAT (section 2). The obligations and requirements imposed by the Determination are primarily procedural and administrative. The Secretary of the Department of Finance has been delegated the power to make such determinations under section 32 of the FMA Act, and this power has been further sub-delegated to certain Senior Executive Service officials within the Department of Finance (section 3). The Determination itself is a legislative instrument for the purposes of the Legislative Instruments Act 2003. In preparing the Determination, consultation with AusAID and DFAT was undertaken in accordance with Part 3 of the Legislative Instruments Act 2003 (section 4). The total appropriations remain unchanged by the Determination, ensuring that there is no net increase or decrease in the appropriated funds (section 5). Breaches of the obligations and requirements imposed by the Determination could have serious consequences. Although the Determination is exempt from disallowance under subsection 32(7) of the FMA Act, it is important that the adjustments and transfers are carried out accurately to ensure compliance with the Appropriation Acts. Any failure to appropriately adjust the appropriations as specified in the Determination could result in financial mismanagement or misallocation of funds, potentially leading to legal and administrative repercussions. The maximum penalties for such breaches would depend on the specific nature of the breach and could include fines or other civil or criminal sanctions under relevant Australian legislation. The Determination itself does not specify any particular offences or penalties for non-compliance with its provisions. However, the underlying legislation, the FMA Act, provides for various offences and penalties for breaches of financial management and accountability requirements. These could include fines, imprisonment, or other civil or criminal consequences depending on the severity and nature of the breach. The exact penalties would be determined by the courts in the context of any legal proceedings arising from a breach of the Determination's provisions.