FMA Act Determination 2014/03 – Section 32 (Transfer of Functions from DEEWR to Education and Employment)

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. The FMA Act Determination 2014/03, issued under section 32 of the FMA Act, aims to adjust appropriations in response to the Administrative Arrangements Order of 18 September 2013, which led to the transfer of functions from the Department of Education, Employment and Workplace Relations (DEEWR) to the Department of Education and the Department of Employment. This Determination is the fourth such transfer related to the abolition of DEEWR. It ensures that appropriations are correctly allocated to support the new agencies in their respective areas of responsibility, without altering the total amount appropriated by Parliament. The process involves consultation with the affected departments and adheres to the requirements of the Legislative Instruments Act 2003.

Scope and Application

The FMA Act Determination 2014/03, specifically Section 32, pertains to the transfer of functions from the former Department of Education, Employment and Workplace Relations (DEEWR) to the Department of Education and the Department of Employment. This Determination is made under the authority of section 32 of the Financial Management and Accountability Act 1997 (FMA Act) to adjust appropriations in response to the Administrative Arrangements Order dated 18 September 2013. The Determination applies to the reallocation of funds between these departments, ensuring a seamless transfer of financial responsibilities related to education and employment functions. It is a legislative instrument for the purposes of the Legislative Instruments Act 2003 and was prepared after consultation with the relevant departments. The Determination affects appropriations in Schedule 1 and Schedule 2 to the Appropriation Acts (No. 1 and No. 2) 2013-2014, resulting in no overall change to the total amount appropriated by Parliament. The adjustments are made to departmental and administered items to reflect the new departmental allocations, and the power to make such determinations has been delegated by the Finance Minister to the Secretary of the Department of Finance and further sub-delegated to senior officials within the department.

Key Provisions

The FMA Act Determination 2014/03, under section 32, facilitates the transfer of appropriations from the former Department of Education, Employment and Workplace Relations (DEEWR) to the Department of Education (Education) and the Department of Employment (Employment), in response to the administrative arrangements order dated 18 September 2013 (sections 1, 2). This Determination adjusts appropriations to accommodate the transition of functions from DEEWR to these newly established departments. This adjustment does not alter the total amount appropriated by Parliament, as the appropriations are merely redistributed between the agencies involved (sections 1, 2). The primary obligation of the Act, as outlined in section 32, is to enable the Finance Minister to make determinations that amend one or more schedules to appropriation acts concerning the transfer of functions between agencies. This responsibility has been delegated by the Finance Minister to the Secretary of the Department of Finance, who in turn has sub-delegated this authority to specific Senior Executive Service officials within the department (sections 32, 62, 53). The act requires these officials to ensure that the appropriations are correctly transferred to reflect the new administrative arrangements, while maintaining the overall appropriation levels set by Parliament. Breaches of the obligations under this Determination are not explicitly outlined in the provided text, but non-compliance with financial management and appropriation processes generally could result in administrative penalties or legal consequences. The Financial Management and Accountability Act 1997 includes provisions for disciplinary action against public officers who fail to comply with financial management laws, including potential criminal charges for fraud or misconduct in office (section 9). Additionally, failure to adhere to the appropriation process could lead to civil consequences such as financial penalties or restitution. The maximum penalties for offences under the FMA Act are not detailed in the provided text, but they typically include fines and imprisonment. For example, section 9 of the FMA Act provides for penalties including fines of up to $21,000 and imprisonment for up to five years for serious breaches of financial management provisions. Furthermore, section 12 of the Act allows for additional penalties under the Crimes Act 1914, which can include more severe fines and imprisonment terms depending on the nature and severity of the offence.