Financial Management and Accountability Act 1997 Determination 2013/14 — Section 32 (Transfer of Functions from DRALGAS to AGD and Infrastructure)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted by the Parliament of Australia to ensure effective financial management and accountability in the government sector. The FMA Act Determination 2013/14 — Section 32 (Transfer of Functions from DRALGAS to AGD and Infrastructure), issued under section 32 of the FMA Act, was introduced to adjust appropriations in response to the Administrative Arrangements Order made on 18 September 2013. This Determination reallocates appropriations from the former Department of Regional Australia, Local Government, Arts and Sport to the Attorney-General’s Department for arts functions and to the Department of Infrastructure and Regional Development for regional development and local government functions, without altering the total amount appropriated by Parliament. The policy objective is to ensure a smooth transition of functions and associated funding, thereby maintaining financial management and accountability within the government. The Determination was made by the Secretary of the Department of Finance, who has the delegated authority to do so under section 62 of the FMA Act. The Determination affects specific items in Schedule 1 and Schedule 2 of the Appropriation Act (No. 1) and (No. 2) 2013-2014, respectively, resulting in no net change to the total appropriations. Consultation with the Attorney-General’s Department and the Department of Infrastructure and Regional Development was conducted in line with the Legislative Instruments Act 2003, ensuring that the changes were implemented with due consideration of the affected parties.

Scope and Application

The FMA Act Determination 2013/14, made under section 32 of the Financial Management and Accountability Act 1997, pertains to the reallocation of appropriations resulting from the Administrative Arrangements Order of 18 September 2013. Specifically, the Determination adjusts appropriations to support the transfer of functions from the former Department of Regional Australia, Local Government, Arts and Sport to the Attorney-General’s Department, concerning arts functions, and to the Department of Infrastructure and Regional Development, concerning regional development and local government functions. This Determination represents a second transfer of appropriations, with an initial transfer occurring on 20 September 2013 under FMA Act Determination 2013/07. The adjustments made by this Determination ensure that the total amount appropriated by Parliament remains unchanged. The Determination applies to appropriations in Schedule 1 to the Appropriation Act (No. 1) 2013-2014 and Schedule 2 to the Appropriation Act (No. 2) 2013-2014, impacting specific items within these schedules. The Determination is a legislative instrument under the Legislative Instruments Act 2003 and exempt from disallowance, thereby not requiring a Statement of Compatibility with Human Rights.

Key Provisions

The FMA Act Determination 2013/14 (the Determination) under section 32 of the Financial Management and Accountability Act 1997 (FMA Act) adjusts appropriations following the Administrative Arrangements Order made on 18 September 2013. This adjustment involves the transfer of functions from the Department of Regional Australia, Local Government, Arts and Sport (DRALGAS) to the Attorney-General’s Department (AGD) and the Department of Infrastructure and Regional Development (DIRD). Specifically, arts functions are transferred to AGD, while regional development and local government functions are transferred to DIRD. This Determination is a legislative instrument made under section 5 of the Legislative Instruments Act 2003. The Determination imposes obligations on the affected agencies, requiring them to comply with the appropriations adjustments detailed in Schedule 1 and Schedule 2 of the Appropriation Acts (No. 1) 2013-2014 and (No. 2) 2013-2014, respectively. These adjustments involve specific items within administered outcomes and state, ACT, NT and local government items. The AGD and DIRD must ensure that their budget allocations are aligned with the functions they now manage, while DRALGAS must adjust its appropriations accordingly. The Department of Finance, through the Secretary and sub-delegated officials, oversees these changes to ensure compliance with the FMA Act. The FMA Act does not specify any particular offences, penalties, or consequences for non-compliance with the Determination. However, the general principles of financial management and accountability under the FMA Act require agencies to manage their appropriations responsibly. Any failure to comply with the appropriations as outlined in the Determination could potentially lead to financial mismanagement, which might result in audits, inquiries, or other administrative actions under the FMA Act. It is important for the affected departments to adhere to the adjustments to maintain proper financial governance and accountability.