Financial Management and Accountability Act 1997 Determination 2013/16 – Section 32 (Transfer of Functions from PM&C to Social Services)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the management and accountability of public finances in Australia. The 2013/16 Determination under section 32 of the FMA Act addresses the need to adjust appropriations following the transfer of specific functions related to the non-profit sector and volunteering from the Department of the Prime Minister and Cabinet (PM&C) to the Department of Social Services. This was necessitated by the Administrative Arrangements Order issued on 18 September 2013. The Determination increases the administered appropriation for Outcome 3 of the Department of Social Services, reflecting the unspent appropriation from the former Department of Families, Housing, Community Services and Indigenous Affairs. The purpose of this adjustment is to ensure the continued funding of activities related to the non-profit sector and volunteering as specified in the 2013-2014 Portfolio Budget Statements of PM&C. The enacting body for this Determination is the Secretary of the Department of Finance, who has the delegated authority to make such adjustments under the FMA Act.

Scope and Application

The FMA Act Determination 2013/16, made under section 32 of the Financial Management and Accountability Act 1997, pertains to the transfer of functions related to the non-profit sector and volunteering from the Department of the Prime Minister and Cabinet (PM&C) to the Department of Social Services. This adjustment in appropriations is a direct response to the Administrative Arrangements Order issued on 18 September 2013. The Determination specifically modifies the administered appropriation for Outcome 3 for the Department of Social Services by increasing it by $2,873,000, an amount that had previously been allocated to the former Department of Families, Housing, Community Services and Indigenous Affairs. The transfer does not alter the total amount appropriated by Parliament, as it merely shifts funds from the Department of the Prime Minister and Cabinet to the Department of Social Services. The Finance Minister, through delegation under the FMA Act, authorised this adjustment, and the power to make such determinations is sub-delegated to certain Senior Executive Service officials within the Department of Finance.

Key Provisions

The FMA Act Determination 2013/16 (Transfer of Functions from PM&C to Social Services) (section 32) adjusts the appropriations to support functions related to the non-profit sector and volunteering, transferring them from the Department of the Prime Minister and Cabinet (PM&C) to the Department of Social Services (Social Services). This adjustment pertains to Outcome 3 under the Appropriation Act (No. 1) 2013-2014, where the Social Services department receives an additional $2,873,000, which is the same amount that the PM&C department loses. This change does not affect the total amount appropriated by Parliament but reallocates the funds between the two departments. Under the FMA Act, the Determination specifies that the additional funds for Social Services can be used for the purposes outlined in the 2013-2014 Portfolio Budget Statements of the PM&C, particularly for activities related to the non-profit sector and volunteering. This reallocation is part of a broader adjustment in response to the Administrative Arrangements Order made on 18 September 2013. The increase to the administered appropriation for Outcome 3 for Social Services includes the unspent amount of administered appropriation that had been provided to the former Department of Families, Housing, Community Services and Indigenous Affairs’ Outcome 3. This ensures a smooth transition of responsibilities and funding between the departments. The obligations imposed by the Determination include the requirement for the Department of Social Services to use the additional funds for the specified purposes related to the non-profit sector and volunteering. This involves careful financial management to ensure that the funds are used effectively and in accordance with the legislative requirements. The Department of the Prime Minister and Cabinet, on the other hand, must ensure that the transferred functions are adequately managed and that there is no financial loss due to the reallocation. Both departments must also comply with the provisions of the FMA Act and any other relevant legislation. There are no specific offences or penalties mentioned in the Determination for non-compliance with the transfer of functions or the use of funds. However, under the FMA Act, breaches of financial management provisions can lead to civil or criminal consequences, including fines and imprisonment. The exact penalties depend on the nature and severity of the breach, as outlined in the FMA Act and other relevant legislation. The Determination itself does not specify penalties but operates within the broader framework of the FMA Act, which includes stringent financial accountability measures.