FMA Act Determination 2014/04 — Section 32 (Transfer of Functions from Immigration to Social Services)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted by the Australian Parliament to establish a robust framework for financial management and accountability within the Commonwealth public sector. The Act provides mechanisms for the allocation and management of public funds, ensuring that they are used efficiently, effectively, and in accordance with legislative and administrative requirements. One of the key provisions of the FMA Act is Section 32, which empowers the Finance Minister to determine adjustments to appropriations in response to changes in the allocation of functions between government agencies. This provision was utilised in the context of the FMA Act Determination 2014/04, which was made to adjust the appropriations in response to the Administrative Arrangements Order of 18 September 2013. This order involved the transfer of functions relating to migrant settlement and multicultural affairs from the Department of Immigration and Border Protection to the Department of Social Services. The Determination resulted in the reallocation of specific appropriations without altering the total amount appropriated by Parliament, thereby reflecting the new administrative arrangements.

Scope and Application

The FMA Act Determination 2014/04 is a legislative instrument made under section 32 of the Financial Management and Accountability Act 1997 to adjust appropriations in response to the transfer of functions from the Department of Immigration and Border Protection to the Department of Social Services. This Determination follows the Administrative Arrangements Order of 18 September 2013, which saw the transfer of functions relating to migrant settlement and multicultural affairs. The Determination specifically amends Schedule 1 of the Appropriation Act (No. 1) 2013-2014, reallocating funds from the Department of Immigration and Citizenship to the Department of Social Services, without altering the total amount appropriated by Parliament. The transfer includes adjustments to administered items for migrant settlement and multicultural affairs, as well as departmental items. The power to make this Determination lies with the Secretary of the Department of Finance, who has sub-delegated it to certain Senior Executive Service officials. Importantly, this Determination is exempt from disallowance under the Legislative Instruments Act 2003, and thus, a Statement of Compatibility with Human Rights is not required. Consultation with the relevant departments occurred during the preparation of this instrument.

Key Provisions

The FMA Act Determination 2014/04 (the Determination) amends Schedule 1 of the Appropriation Act (No. 1) 2013-2014 to adjust appropriations in response to the transfer of functions relating to migrant settlement and multicultural affairs from the Department of Immigration and Border Protection to the Department of Social Services (section 32). Specifically, the Determination transfers $90,099,000 in appropriations from the Department of Immigration and Citizenship (Outcome 5) to the Department of Social Services (Outcome 9) for migrant settlement and multicultural affairs, and an additional $21,231,000 in departmental appropriations. This transfer of funds results in no change to the total amount appropriated by Parliament. Under the FMA Act, the Finance Minister has the authority to amend appropriations in relation to the transfer of functions between Agencies (section 32). This power is delegated to the Secretary of the Department of Finance, who in turn has sub-delegated it to certain Senior Executive Service officials within the Department, including the official who made the Determination. The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003. The Determination imposes no obligations or requirements on the Departments or other parties beyond the transfer of appropriations as specified. However, it is essential that the Departments adhere to the new allocation of funds as outlined in the Determination. The transfer of appropriations is designed to ensure that the Department of Social Services has the necessary resources to fulfil its new responsibilities in migrant settlement and multicultural affairs. There are no specific offences or penalties outlined in the Determination itself. However, any breaches of the FMA Act or Appropriation Act, which govern financial management and appropriations, could result in criminal or civil consequences. Offences under the FMA Act may incur fines up to $21,000 for individuals and $105,000 for bodies corporate, as well as imprisonment for serious offences. Similarly, breaches of the Appropriation Act may incur penalties as prescribed by the relevant laws, which could include fines or other civil penalties.