EXPLANATORY STATEMENT
Financial Management and Accountability Act 1997
FMA Act Determination 2014/05 — Section 32 (Transfer of Functions from DEEWR 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.
Under the Administrative Arrangements Order, functions relating to disability employment services were transferred from the former Department of Education, Employment and Workplace Relations to the Department of Social Services (previously the Department of Families, Housing, Community Services and Indigenous Affairs).
The Acts Interpretation (Substituted References – Section 19B) Amendment Order 2013 (No. 2) altered specific references to Departments in Appropriation Act (No. 1) 2013-2014 to reflect the Administrative Arrangements Order made on 18 September 2013. This included references to the Department of Families, Housing, Community Services and Indigenous Affairs being deemed as references to the Department of Social Services.
This Determination is the fifth transfer of appropriations in relation to the abolition of the Department of Education, Employment and Workplace Relations. An initial transfer of appropriations occurred on 18 September 2013, under FMA Act Determination 2013/06 — Section 32 (Transfer of Functions from DEEWR to Education and Employment). A second transfer of appropriations occurred on 1 December 2013, under FMA Act Determination 2013/19 — Section 32 (Transfer of Functions from DEEWR to PM&C). A third transfer of appropriations occurred on 13 December 2013, under FMA Act Determination 2013/20 — Section 32 (Transfer of Functions from DEEWR to Education and Employment). A fourth transfer of appropriations occurred on 11 February 2014, under FMA Act Determination 2014/03 — Section 32 (Transfer of Functions from DEEWR to Education and Employment).The further transfer of appropriations will occur in due course.
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 are amended in a specified way in relation to the transfer of a function from one Agency to another.
The Finance Minister has delegated the power to make determinations under section 32 to the Secretary of the Department of Finance (in accordance with section 62 of the FMA Act). The Secretary has, in turn, sub‑delegated this power to certain Senior Executive Service officials within the Department of Finance (in accordance with section 53 of the FMA Act), 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, the Department of Social Services was 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 Education, Employment and Workplace Relations | Administered item, Outcome 3 | Appropriation Act (No. 1) 2013-2014 | | -196,099 |
Department of Social Services | Administered item, Outcome 11 | Appropriation Act (No. 1) 2013-2014 | +196,099 | |
Department of Education, Employment and Workplace Relations | Departmental item | Appropriation Act (No. 1) 2013-2014 | | -12,000 |
Department of Social Services | Departmental item | Appropriation Act (No. 1) 2013-2014 | +12,000 | |
| | Total | +208,099 | -208,099 |
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. This legislation was introduced to address the need for a robust system to ensure the efficient, effective, and economical use of public funds, as well as to maintain accountability in the allocation and use of these funds. The Act empowers the Finance Minister to make determinations under section 32, which was the basis for the FMA Act Determination 2014/05 — Section 32 (Transfer of Functions from DEEWR to Social Services). This Determination was made under the authority of the Australian Parliament to adjust appropriations following the transfer of functions related to disability employment services from the Department of Education, Employment and Workplace Relations to the Department of Social Services, as mandated by the Administrative Arrangements Order on 18 September 2013. The policy objective behind this transfer was to streamline government operations and better align resources with policy goals.
Scope and Application
The FMA Act Determination 2014/05, made under section 32 of the Financial Management and Accountability Act 1997, facilitates the transfer of appropriations from the former Department of Education, Employment and Workplace Relations to the Department of Social Services, reflecting the administrative changes resulting from the Administrative Arrangements Order on 18 September 2013. This determination adjusts the amounts appropriated to these agencies without altering the total appropriation set by Parliament. It applies to specific items within the Appropriation Act (No. 1) 2013-2014, transferring funds from the Department of Education, Employment and Workplace Relations to the Department of Social Services, thereby reallocating resources in line with the newly assigned functions related to disability employment services. The scope of this determination is limited to the specified appropriations as detailed in the summary of changes and does not extend to other appropriations or agencies unless otherwise specified by subsequent determinations. The Act does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under subsection 32(7) of the FMA Act.
Key Provisions
The main operative sections of the FMA Act Determination 2014/05 involve the adjustment of appropriations between the Department of Education, Employment and Workplace Relations (DEEWR) and the Department of Social Services. Section 32 of the Financial Management and Accountability Act 1997 (FMA Act) allows for this adjustment in response to the transfer of functions between agencies. This particular Determination (paragraphs 1 and 2) adjusts the appropriations under Schedule 1 of the Appropriation Act (No. 1) 2013-2014, transferring funds from DEEWR to the Department of Social Services as a result of the Administrative Arrangements Order made on 18 September 2013. The transfer involves an administered item of $196,099,000 and a departmental item of $12,000,000, ensuring the total appropriation amount remains unchanged.
The obligations and requirements imposed by this Determination include the formal process of reallocating funds as a result of the transfer of functions. The Finance Minister, through the Secretary of the Department of Finance, has the power to make such determinations under section 32 of the FMA Act. The Secretary has sub-delegated this authority to certain officials within the Department of Finance, who must ensure that the reallocation of funds is carried out in compliance with the requirements set out in the Determination. Additionally, the Department of Social Services was consulted in the preparation of this Determination, as mandated by Part 3 of the Legislative Instruments Act 2003.
Regarding offences, penalties, or consequences for breach, it is important to note that a Statement of Compatibility with Human Rights is not required for this Determination. This is because determinations under section 32 of the FMA Act are exempt from disallowance under subsection 32(7) of the FMA Act. Therefore, there are no specific penalties outlined for breaches of this Determination. However, any failure to comply with the requirements of the FMA Act or the Appropriation Act could potentially lead to broader legal consequences, including administrative or judicial review, depending on the specific circumstances and the relevant legislative framework.