Financial Management and Accountability Act 1997 Determination 2013/17 — Section 32 (Transfer of Functions from Health to Social Services)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the financial management of Commonwealth entities and to ensure accountability in the use of public funds. The 2013/17 FMA Act Determination, made under section 32 of the FMA Act, aims to adjust appropriations in response to the transfer of functions from the Department of Health and Ageing to the Department of Social Services, as directed by the Administrative Arrangements Order issued on 18 September 2013. This Determination is the second instance of appropriations being reallocated for aged care functions transferred from the former Department of Health and Ageing to the Department of Social Services, following an initial transfer under FMA Act Determination 2013/09. The power to make such determinations is vested in the Secretary of the Department of Finance, who has sub-delegated this authority to certain officials within the Department, including the official who made this Determination. The Determination, which does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance, involved consultation with the Department of Health and the Department of Social Services. The changes implemented through this Determination result in no overall change to the total amount appropriated by Parliament.

Scope and Application

The FMA Act Determination 2013/17, made under section 32 of the Financial Management and Accountability Act 1997, pertains to the transfer of functions and appropriations between the Department of Social Services and the Department of Health and Ageing, now the Department of Health. This Determination is specifically designed to adjust appropriations in response to the Administrative Arrangements Order issued on 18 September 2013, which involved the transfer of aged care functions from the Department of Health and Ageing to the Department of Social Services. This adjustment ensures that the financial resources align with the new responsibilities and functions of these departments. The Determination applies to the Appropriation Act (No. 1) 2013-2014, specifically affecting Schedule 1, and results in a transfer of $996,571,000 from the Department of Health and Ageing to the Department of Social Services without altering the total amount appropriated by Parliament. The power to make such determinations has been delegated to the Secretary of the Department of Finance and further sub-delegated to certain Senior Executive Service officials within the Department of Finance.

Key Provisions

The FMA Act Determination 2013/17 (Transfer of Functions from Health to Social Services) (the Determination) primarily adjusts appropriations under the Appropriation Act (No. 1) 2013-2014 in response to the transfer of functions from the Department of Health and Ageing to the Department of Social Services (sections 1, 2). This transfer is part of a broader administrative restructuring outlined in the Administrative Arrangements Order of 18 September 2013. Specifically, the Determination increases appropriations for the Department of Social Services by $996,571,000 and decreases appropriations for the Department of Health and Ageing by the same amount, resulting in no net change to the total amount appropriated by Parliament (section 2). The Determination imposes certain obligations on the relevant parties, primarily ensuring that the transfer of appropriations is executed as per the provisions of the FMA Act. The Finance Minister, under section 32 of the FMA Act, is responsible for determining the amendments to the Appropriation Acts in relation to the transfer of functions. This power has been delegated to the Secretary of the Department of Finance, and further sub-delegated to specific Senior Executive Service officials within the Department of Finance (sections 3, 4). These officials are tasked with ensuring that the transfer of appropriations is accurately reflected in the relevant Appropriation Act schedules. In terms of legal consequences, the Determination itself does not specify any offences, penalties, or consequences for breach. However, the underlying FMA Act may impose penalties for breaches of appropriation acts or financial mismanagement. The FMA Act generally allows for civil or criminal penalties, depending on the nature and severity of the breach. For example, section 33 of the FMA Act provides for a maximum penalty of 2,000 penalty units ($420,000) for offences related to misuse of public money. Additionally, the Legislative Instruments Act 2003 may also provide for certain consequences, although the Determination is exempt from disallowance under the FMA Act, meaning no specific penalties are outlined for its non-compliance (section 7).