FMA Act Determination 2014/02 — Section 32 (Transfer of Functions from Industry to Education)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to establish a framework for the financial management and accountability of Commonwealth agencies. The Act seeks to ensure that the Commonwealth's financial resources are managed efficiently and effectively. The FMA Act Determination 2014/02 — Section 32 (Transfer of Functions from Industry to Education) was made under section 32 of the FMA Act to further adjust amounts appropriated to particular agencies in response to changes in the Administrative Arrangements Order, which saw the transfer of functions related to international education and higher education from the former Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education to the Department of Education. The purpose of this Determination is to reallocate appropriations to reflect the new allocation of responsibilities while maintaining the total amount appropriated by Parliament. The Determination was made by the Secretary of the Department of Finance, who has been delegated this power by the Finance Minister under section 62 of the FMA Act. This 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.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) Determination 2014/02, made under section 32 of the FMA Act, is a legislative instrument aimed at adjusting appropriations to particular agencies in response to changes in the Administrative Arrangements Order (AAO) of 2013. Specifically, the Determination addresses the transfer of functions related to international education, higher education, and research from the Department of Industry to the Department of Education. This transfer is reflected in Schedules 1 and 2 of the Appropriation Acts (No. 1 and No. 2) for the 2013-2014 fiscal year, ensuring that there is no overall change to the total amount appropriated by Parliament. The power to make such determinations is delegated from the Finance Minister to the Secretary of the Department of Finance, who further sub-delegates this authority to specific officials within the department. The Determination, which is not subject to disallowance, did not require a Statement of Compatibility with Human Rights as it falls outside the scope of legislative instruments subject to disallowance. Consultation with the Department of Education and the Department of Industry was undertaken in accordance with the Legislative Instruments Act 2003.

Key Provisions

The Financial Management and Accountability Act 1997 (FMA Act) Determination 2014/02 (Section 32) provides for the transfer of functions and related appropriations between the Department of Industry and the Department of Education. This Determination (sections 1–4) is necessitated by changes to the Administrative Arrangements Order (AAO) on 18 September 2013 and 3 October 2013, which shifted functions relating to international education, higher education, and research from the Department of Industry to the Department of Education. The Determination specifically amends Schedules 1 and 2 of the Appropriation Acts (No. 1 and No. 2) 2013-2014, reallocating funds without altering the total appropriations determined by Parliament. The primary obligations under this Determination fall upon the Secretary of the Department of Finance, who, under delegation from the Finance Minister, has the authority to make such adjustments. This obligation includes ensuring that the reallocation of funds aligns with the new functional responsibilities as per the updated AAO. The Determination itself lists the specific appropriations to be transferred from the Department of Industry to the Department of Education, affecting both administered and departmental items. It also ensures that the total appropriations remain unchanged by the reallocation. Breach of the obligations under this Determination could lead to mismanagement of public funds, potentially impacting the delivery of government services. While the Determination does not explicitly state penalties for non-compliance, the general provisions of the FMA Act apply. Non-compliance with appropriation acts could lead to civil or criminal penalties, including fines and imprisonment, depending on the severity and intent of the breach. However, the specific penalties would be determined in accordance with other relevant legislation, such as the Criminal Code Act 1995.