EXPLANATORY STATEMENT
Financial Management and Accountability Act 1997
FMA Act Determination 2013/09 – Section 32 (Transfer of Functions from Health to Social Services) (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 Order made on 18 September 2013.
The Determination adjusts appropriations as an interim measure to support aged care functions transferring from the former Department of Health and Ageing (Health, now known as the Department of Health) to the Department of Social Services (Social Services, previously known as the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA)). The further transfer of appropriations will occur in due course.
Table 10 in Schedule 1 to the Determination contains a new Outcome 8 for Social Services. The text of that outcome is generally the same as the text of Outcome 4 for Health, but has additional text to confirm that Social Services can perform activities indicated in Health’s 2013-2014 Portfolio Budget Statements for that outcome.
In determining the scope of its Outcomes 1 to 6, Social Services may refer to Outcomes 1 to 6 in FaHCSIA’s 2013-2014 Portfolio Budget Statements.
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 under section 32 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 certain Senior Executive 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, Health and Social Services 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 Social Services | Administered item, Outcome 8 | Appropriation Act (No. 1) 2013-2014 | +440,000 | |
Department of Health and Ageing | Administered item, Outcome 4 | Appropriation Act (No. 1) 2013-2014 | | -440,000 |
| | Total | +440,000 | -440,000 |
Overview
The Financial Management and Accountability Act 1997 was enacted to ensure accountability and efficiency in the management of Commonwealth financial resources. The FMA Act Determination 2013/09, made under section 32 of the FMA Act, was introduced to address the interim adjustment of appropriations following the transfer of aged care functions from the Department of Health and Ageing to the Department of Social Services. This was necessitated by the Administrative Arrangements Order of 18 September 2013. The Determination, prepared by officials within the Department of Finance, aims to facilitate a smooth transition of responsibilities and funding without altering the overall amount appropriated by Parliament. The process involved consultation with the affected departments and aligns with the legislative framework established by the Legislative Instruments Act 2003, exempting the Determination from disallowance and thereby not requiring a Statement of Compatibility with Human Rights.
Scope and Application
The FMA Act Determination 2013/09 under section 32 of the Financial Management and Accountability Act 1997 is designed to adjust appropriations between the Department of Social Services and the Department of Health and Ageing as a result of the transfer of certain functions related to aged care from the latter to the former department. This interim adjustment is in response to an Administrative Arrangements Order, and the changes are detailed in Schedule 1 of the Appropriation Act (No. 1) 2013-2014. Specifically, the Determination transfers $440,000 from Outcome 4 of the Department of Health and Ageing to Outcome 8 of the Department of Social Services, with no overall change to the total amount appropriated by Parliament. The power to make such determinations is vested in certain Senior Executive officials within the Department of Finance, who have been delegated this authority by the Finance Minister under section 62 of the FMA Act. The Determination does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under the FMA Act. Consultation with the affected departments was conducted in line with the Legislative Instruments Act 2003.
Key Provisions
The FMA Act Determination 2013/09, made under section 32 of the Financial Management and Accountability Act 1997 (FMA Act), addresses the interim transfer of appropriations related to aged care functions from the Department of Health and Ageing (Health) to the Department of Social Services (Social Services). This transfer is in response to the Administrative Arrangements Order issued on 18 September 2013. The Determination specifies the adjustment of appropriations, with an increase of $440,000 in administered items for Outcome 8 for Social Services and a corresponding decrease for Outcome 4 for Health, as detailed in Table 10 of Schedule 1 to the Determination.
Under the provisions of the FMA Act, particularly section 32, the Finance Minister has the authority to amend appropriation acts concerning the transfer of functions between agencies. The delegation of this power to certain Senior Executive officials within the Department of Finance, as per section 62, ensures that the determination is executed by authorised personnel. This Determination is considered a legislative instrument under the Legislative Instruments Act 2003, which mandates the formal process of making such amendments.
The obligations imposed by the Determination require the Department of Social Services to take over the specified aged care functions, along with the associated appropriations. In turn, the Department of Health and Ageing must relinquish those functions and the appropriations linked to them. The new Outcome 8 for Social Services must align with the previously defined Outcome 4 for Health, with Social Services having the flexibility to reference FaHCSIA's 2013-2014 Portfolio Budget Statements to determine the scope of its Outcomes 1 to 6.
Regarding potential breaches, the FMA Act does not specify particular offences or penalties for non-compliance with this Determination. However, non-compliance with the FMA Act generally can lead to severe consequences. For example, unauthorised expenditure or mismanagement of funds could result in civil or criminal penalties, including fines and imprisonment, depending on the severity of the breach. It is essential for the involved departments to adhere to the provisions of the Determination to avoid any legal repercussions.