Financial Management and Accountability Act 1997 Determination 2013/21 – Section 32 (Transfer of Functions from Social Services to AACQA)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the financial management and accountability of Commonwealth agencies. This Act was introduced to address the need for a cohesive and transparent approach to the allocation and control of public funds. The FMA Act Determination 2013/21, made under section 32 of the FMA Act, was issued by the Secretary of the Department of Finance, pursuant to a delegation from the Finance Minister. This Determination aims to facilitate the transfer of specific functions and appropriations from the Department of Social Services to the newly established Australian Aged Care Quality Agency (AACQA) as per the Australian Aged Care Quality Agency Act 2013. This transfer is designed to ensure that the AACQA has the necessary resources to commence operations from 1 January 2014, without altering the overall appropriations determined by Parliament. The Determination involves a reallocation of $13,038,000 within the Appropriation Act (No. 1) 2013-2014, with no net change to the total amount appropriated.

Scope and Application

The FMA Act Determination 2013/21, made under section 32 of the Financial Management and Accountability Act 1997, adjusts appropriations to support the establishment of the Australian Aged Care Quality Agency from 1 January 2014. This adjustment involves a transfer of funds from the Department of Social Services to the Australian Aged Care Quality Agency, as established under the Australian Aged Care Quality Agency Act 2013. The transfer of functions and appropriations is facilitated by the Finance Minister, who has delegated this authority to the Secretary of the Department of Finance, and further sub-delegated it to specific Senior Executive Service officials. This Determination, classified as a legislative instrument under the Legislative Instruments Act 2003, does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under the FMA Act. The process involved consultation with the Department of Social Services in line with the Legislative Instruments Act 2003, ensuring transparency and stakeholder engagement in the legislative amendment process.

Key Provisions

The key operative sections of the FMA Act Determination 2013/21 (Transfer of Functions from Social Services to AACQA) (the Determination) are found in sections 32 and 62 of the Financial Management and Accountability Act 1997 (FMA Act). Section 32 of the FMA Act empowers the Finance Minister to determine amendments to one or more Schedules to one or more Appropriation Acts in relation to the transfer of a function from one agency to another. This particular Determination involves the transfer of functions related to the establishment of the Australian Aged Care Quality Agency (AACQA) from the Department of Social Services (DOSS) to the AACQA, effective from 1 January 2014. The determination results in an appropriation of $13,038,000 from the DOSS to the AACQA, as detailed in Schedule 1 to the Appropriation Act (No. 1) 2013-2014. The Determination imposes specific obligations on the parties involved, primarily the DOSS and the newly established AACQA. The DOSS must ensure the transfer of the specified function and the associated appropriation to the AACQA. Similarly, the AACQA must be prepared to receive the function and the financial resources associated with it, to support its establishment and operation. The Determination also mandates consultation between the DOSS and other relevant stakeholders during its preparation, in line with Part 3 of the Legislative Instruments Act 2003. This ensures that the transfer of functions and appropriations is conducted in a manner that is both transparent and accountable. There are no specific offences or penalties outlined in the Determination itself. However, the FMA Act, under which the Determination is made, provides a framework for financial management and accountability within the Commonwealth. Any breach of the obligations or requirements of the FMA Act could potentially lead to civil or criminal consequences, depending on the nature and severity of the breach. The maximum penalties for breaches of the FMA Act can include substantial fines and, in some cases, imprisonment. The specific penalties would be determined by the courts, taking into account the circumstances of each case. In summary, the Determination adjusts appropriations to facilitate the transfer of functions from the Department of Social Services to the Australian Aged Care Quality Agency. It outlines the financial implications of this transfer and the obligations of the parties involved. While the Determination itself does not specify penalties for breaches, the overarching framework of the FMA Act provides for potential civil and criminal consequences for non-compliance with its provisions.