EXPLANATORY STATEMENT
Financial Management and Accountability Act 1997
FMA Act Determination 2013/18 — Section 32 (Transfer of Functions from Industry to Education) (the Determination)
Purpose of the Determination
The Determination is made under section 32 of the Financial Management and Accountability Act 1997 (FMA Act), to adjust amounts appropriated to particular agencies in response to the Administrative Arrangements Orders made on 18 September 2013 and 3 October 2013.
Due to a change to the Administrative Arrangements Order on 18 September 2013, functions in relation to international education transferred from the former Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education to the Department of Education (Education).
On 18 September 2013, the Governor-General in Council acting on the Prime Minister’s recommendation under section 64 of the Constitution renamed the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education as the Department of Industry.
This Determination is also made due to a change to the Administrative Arrangements Order made on 3 October 2013, where functions in relation to research were transferred from the renamed Department of Industry to Education.
The further movement of appropriations will occur in due course.
New Outcomes in Table 23:
Table 23 to the Determination contains new Outcomes 3 and 4 for Education. The new Outcome 3 and Outcome 4 text for Education is the same as the text for Outcome 2 and Outcome 3 of the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education.
The new Outcomes should be read alongside the text in note 13 at the end of Appropriation Act (No. 1) 2013-2014. This text explains that where a new outcome is inserted, which substantially corresponds to the text of an existing outcome for an Agency, the new outcome is to be read as including activities indicated in the relevant Portfolio Budget Statements in respect of the existing outcome. Accordingly, the amounts appropriated to Outcomes 3 and 4 for Education may be applied for the purpose of undertaking the activities indicated in the Portfolio Budget Statements for 2013‑2014 of the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education in respect of Outcomes 2 and 3, respectively.
Transfer of Functions generally
Section 32 of the FMA Act enables the Finance Minister to determine that one or more Schedules to one or more Appropriation Acts are amended in a specified way in relation to the transfer of a function from one Agency to another.
Under section 62 of the FMA Act, the Finance Minister has delegated the power to make determinations under section 32 to the Secretary of the Department of Finance. Under section 53 of the FMA Act, the Secretary has, in turn, sub‑delegated this power to certain Senior Executive Service officials within the Department of Finance, including the official who made the Determination.
The Determination is a legislative instrument for the purposes of section 5 of the Legislative Instruments Act 2003.
Statement of Compatibility with Human Rights
A Statement of Compatibility with Human Rights is not required for the Determination.
Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires a Statement of Compatibility with Human Rights for all legislative instruments subject to disallowance under
section 42 of the Legislative Instruments Act 2003. A determination under section 32 of the FMA Act is exempt from disallowance under subsection 32(7) of the FMA Act. As such, a Statement of Compatibility with Human Rights is not required.
Consultation and Impact
Consistent with Part 3 of the Legislative Instruments Act 2003, the Department of Education and the Department of Industry were consulted in the preparation of the Determination.
Summary of Changes
The Determination affects Schedule 1 to the Appropriation Act (No. 1) 2013-2014 in the following way, which results in no change to the total amount appropriated by Parliament:
Agency affected | Item affected | Appropriation Act | Transfer to ($ ’000) | Transfer from ($ ’000) |
Department of Education | Administered item, Outcome 3 | Appropriation Act (No. 1) 2013-2014 | +18,560 | |
Department of Industry | Administered item, Outcome 2 | Appropriation Act (No. 1) 2013-2014 | | -18,560 |
Department of Education | Administered item, Outcome 4 | Appropriation Act (No. 1) 2013-2014 | +8,831 | |
Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education | Administered item, Outcome 3 | Appropriation Act (No. 1) 2013-2014 | | -8,831 |
| | Total | +27,391 | -27,391 |
Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted to establish a framework for the management and accountability of public money in Australia, ensuring that government funds are used efficiently, effectively, economically, and ethically. This legislation aims to address issues of transparency and responsibility in financial management within public agencies. The Act was enacted by the Commonwealth Parliament, reflecting the need for robust financial governance at the national level. The FMA Act Determination 2013/18, specifically Section 32 (Transfer of Functions from Industry to Education), was introduced to adjust appropriations in response to the Administrative Arrangements Orders issued on 18 September 2013 and 3 October 2013. These orders resulted in the transfer of certain functions from the Department of Industry to the Department of Education. The Determination ensures that the reallocation of funds aligns with the new functional responsibilities of the affected departments, while maintaining the total amount appropriated by Parliament. The policy objective is to facilitate a smooth transition of functions and ensure that financial resources are appropriately aligned with the new portfolio responsibilities.
Scope and Application
The FMA Act Determination 2013/18 applies to appropriations under the Appropriation Act (No. 1) 2013-2014, adjusting the allocation of funds in response to the transfer of functions between the Department of Industry and the Department of Education. This legislation is necessary following the Administrative Arrangements Orders on 18 September 2013 and 3 October 2013, which saw the transfer of international education and research functions from the Department of Industry to the Department of Education. The Determination modifies the appropriation amounts without altering the total budget, ensuring that the financial resources align with the newly assigned responsibilities. The changes include an increase of $18,560,000 for Outcome 3 and $8,831,000 for Outcome 4 in the Department of Education's appropriation, offset by equivalent decreases in the Department of Industry's appropriation for Outcomes 2 and 3. The Determination is a legislative instrument made under the Financial Management and Accountability Act 1997, exempt from disallowance and therefore not requiring a Statement of Compatibility with Human Rights. Consultation with the relevant departments occurred during the preparation of this Determination.
Key Provisions
The Financial Management and Accountability Act 1997 (FMA Act) Determination 2013/18, specifically Section 32, concerns the transfer of functions from one agency to another, as necessitated by the Administrative Arrangements Orders of 18 September 2013 and 3 October 2013. These orders resulted in the transfer of functions relating to international education and research from the Department of Industry to the Department of Education. The key provisions of the Determination include the adjustment of appropriated amounts to reflect these changes, as shown in the summary of changes. Notably, the Determination affects Schedule 1 to the Appropriation Act (No. 1) 2013-2014, where appropriations are reallocated between the Department of Education and the Department of Industry. Specifically, Outcome 3 and Outcome 4 for Education receive appropriations of $18,560,000 and $8,831,000, respectively, while Outcome 2 for the Department of Industry loses the same amounts. These changes are detailed in Table 23 of the Determination.
The obligations imposed by the Determination on the affected agencies primarily revolve around the reallocation of appropriated funds. The Department of Education must ensure that the transferred funds are utilised for activities outlined in the Portfolio Budget Statements of the former Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education. Conversely, the Department of Industry must manage the reduction in appropriations for the specified outcomes. These obligations are designed to maintain fiscal integrity and ensure that the reallocation of funds aligns with the functions transferred to the Department of Education.
In terms of consequences for non-compliance, the Determination does not explicitly outline penalties or consequences for breaching its provisions. However, non-compliance with appropriations and financial management directives under the FMA Act generally could result in serious administrative, civil, or criminal consequences. The FMA Act itself provides for a range of penalties, including fines and imprisonment, for breaches of its provisions. Therefore, while the Determination itself does not specify penalties, any failure to adhere to the reallocated appropriations could potentially lead to legal action under the broader framework of the FMA Act.