FMA Act Determination 2014/01 – Section 32 (Transfer of Functions from Industry to Environment and Foreign Affairs)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the management of public money, ensuring accountability and transparency in the use of public funds by Commonwealth agencies. The FMA Act Determination 2014/01, made under section 32 of the FMA Act, addresses the need to adjust appropriations for specific government departments following changes in administrative arrangements. This interim measure was enacted in response to the Administrative Arrangements Order of 18 September 2013, which involved the transfer of certain functions related to climate change from the Department of Industry to the Department of the Environment and the Department of Foreign Affairs and Trade. The Determination ensures that the financial appropriations are aligned with these changes, facilitating the smooth transfer of responsibilities and ensuring that the appropriate funding follows the functions to the relevant departments. The enactment of this Determination by the Secretary of the Department of Finance reflects the legislative intent to maintain financial integrity and support the operational needs of the affected departments.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) Determination 2014/01, specifically Section 32 (Transfer of Functions from Industry to Environment and Foreign Affairs), pertains to the redistribution of funds among the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (Industry), the Department of the Environment (Environment), and the Department of Foreign Affairs and Trade (Foreign Affairs). This Determination was necessitated by the Administrative Arrangements Order (AAO) of 18 September 2013, which involved the transfer of domestic climate change functions from Industry to Environment and international climate change functions from Industry to Foreign Affairs. The Determination serves as an interim measure, with further appropriations to be managed through additional estimates or subsequent Appropriation Acts. It adjusts the amounts appropriated to the respective departments to reflect these transfers, ensuring that no overall change occurs in the total amount appropriated by Parliament. The determination was prepared in consultation with the relevant departments and is subject to the legislative framework provided by the FMA Act, with no requirement for a Statement of Compatibility with Human Rights due to its exemption from disallowance.

Key Provisions

The Financial Management and Accountability Act 1997 (FMA Act) Determination 2014/01, particularly Section 32, addresses the transfer of functions from the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (Industry) to the Department of the Environment (Environment) and the Department of Foreign Affairs and Trade (Foreign Affairs) (sections 1-3). This Determination is in response to the Administrative Arrangements Order made on 18 September 2013, and it includes adjustments to appropriations to reflect these transfers. It serves as an interim measure pending further transfers that may be included in Additional Estimates or other Appropriation Acts. For instance, it includes an increase to the administered appropriation for Outcome 1 for Foreign Affairs by $2,588,000, representing the unspent amount that had been allocated to Outcome 1 of Foreign Affairs. The Determination also introduces a new Outcome 7 for Environment in Table 29, which aligns substantially with Outcome 4 of Industry, permitting Environment to undertake domestic climate change activities as indicated in the Portfolio Budget Statements 2013-2014 for Industry. The Determination imposes specific obligations on the affected departments, namely the Department of the Environment, the Department of Foreign Affairs and Trade, and the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education. These obligations include the realignment of funding and resources to accommodate the transfer of domestic and international climate change functions. The Department of the Environment is now responsible for Outcome 7, which includes climate change activities as previously managed under Outcome 4 of Industry, except those activities relating to bilateral, regional, and multilateral engagement internationally. The Department of Foreign Affairs and Trade is tasked with managing international climate change functions previously overseen by Industry, as indicated by the increase in appropriation for Outcome 1. Conversely, the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education must relinquish its domestic climate change functions and resources, resulting in a reduction in appropriations. Breach of the obligations stipulated in the Determination could result in various consequences, although the Determination itself does not explicitly outline specific penalties or enforcement mechanisms. However, given the legislative context under the FMA Act, non-compliance with the appropriations and functions transfer outlined in the Determination could lead to administrative or legal repercussions. The FMA Act provides a framework for financial management and accountability, and failure to adhere to the appropriations and function transfers could result in scrutiny from the relevant authorities or courts, potentially leading to financial penalties, corrective actions, or other administrative measures to ensure compliance with the Act's provisions.