Financial Management and Accountability Act 1997 Determination 2013/19 — Section 32 (Transfer of Functions from DEEWR to PM&C)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to address issues relating to the financial management and accountability of Commonwealth agencies. The Act aims to ensure that public funds are managed effectively and that there is transparency and accountability in the use of public resources. The FMA Act Determination 2013/19 was made under section 32 of the FMA Act by the Secretary of the Department of Finance, who was delegated this power by the Finance Minister. The purpose of this Determination is to adjust the appropriations for specific agencies in response to the Administrative Arrangements Order of 18 September 2013, particularly concerning the transfer of functions relating to indigenous affairs from the former Department of Education, Employment and Workplace Relations to the Department of the Prime Minister and Cabinet. This adjustment ensures that the transferred functions are appropriately funded without altering the total amount appropriated by Parliament. The Determination was prepared with consultation from the relevant departments and does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under the FMA Act.

Scope and Application

The FMA Act Determination 2013/19, made under section 32 of the Financial Management and Accountability Act 1997, pertains to the reallocation of appropriations among government agencies in response to the Administrative Arrangements Order issued on 18 September 2013. This Determination specifically addresses the transfer of functions related to indigenous affairs from the former Department of Education, Employment and Workplace Relations to the Department of the Prime Minister and Cabinet (PM&C), affecting the agency's Outcome 1, Outcome 2, and Outcome 3. The changes made do not alter the total amount appropriated by Parliament, with increases in appropriations to the PM&C being offset by decreases in appropriations to the former Department of Education, Employment and Workplace Relations. Additionally, the Determination includes adjustments to appropriations for indigenous affairs activities across multiple departments, as outlined in the relevant Portfolio Budget Statements. This Determination is part of a series of transfers initiated in response to the shift of indigenous affairs functions to the PM&C. The Determination operates under the Commonwealth of Australia and applies to the reallocation of appropriations among specified government agencies, as detailed in the Appropriation Acts (No. 1 and No. 2) 2013-2014. It does not specify any exclusions or thresholds but details the exact appropriations transferred between the affected departments. The power to make such determinations is delegated by the Finance Minister to the Secretary of the Department of Finance, who in turn has sub-delegated this authority to certain Senior Executive Service officials. Importantly, this Determination is exempt from disallowance, thereby not requiring a Statement of Compatibility with Human Rights. The adjustments made through this Determination are reflected in the appropriation schedules of the relevant Appropriation Acts, ensuring no net change to the total appropriations set by Parliament.

Key Provisions

The FMA Act Determination 2013/19 (the Determination) primarily involves the transfer of appropriations from the Department of Education, Employment and Workplace Relations (DEEWR) to the Department of the Prime Minister and Cabinet (PM&C) in response to the Administrative Arrangements Order made on 18 September 2013. This transfer is detailed in Schedule 2 of the Determination, which includes changes to the Appropriation Act (No. 1) 2013-2014 and Appropriation Act (No. 2) 2013-2014. Specifically, section 32 of the Financial Management and Accountability Act 1997 (FMA Act) allows the Finance Minister to adjust appropriations when functions are transferred between agencies. This Determination transfers funds to support indigenous affairs activities previously managed by DEEWR. The Determination imposes certain obligations on the affected parties, including the PM&C and DEEWR. The PM&C is required to ensure that the transferred funds are used in accordance with the activities outlined in the relevant Portfolio Budget Statements (PBS). DEEWR must coordinate the transfer of funds and ensure that the withdrawn appropriations are appropriately managed. Both departments must adhere to the specific guidelines and conditions set forth in the Determination to ensure the proper allocation and usage of the transferred funds. Under the FMA Act, breaches of the Determination can lead to various consequences. While specific penalties are not detailed within the Determination itself, the general legislative framework suggests that non-compliance with appropriations and financial management directives can lead to administrative sanctions, financial audits, and potential legal actions. The FMA Act includes provisions for financial misconduct, which can result in fines and, in severe cases, criminal charges. The exact penalties depend on the nature and severity of the breach, as well as other relevant laws and regulations. The Determination does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under subsection 32(7) of the FMA Act. This exemption means that the Determination does not need to align with the Human Rights (Parliamentary Scrutiny) Act 2011, which mandates such statements for legislative instruments subject to disallowance. The legislative instruments act ensures that the necessary consultations were conducted with relevant departments, including the PM&C, the Department of Education, and the Department of Employment, in preparing the Determination.