FMA Act Determination 2014/06 — Section 32 (Transfer of Functions from Health to Social Services)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the management and accountability of public money, ensuring that public sector agencies are able to manage their finances effectively and transparently. This Act was introduced by the Parliament of Australia to address the need for robust financial management practices within the public sector, particularly in the context of large-scale government operations and expenditure. Under section 32 of the FMA Act, the Finance Minister has the authority to make determinations to adjust appropriations in response to changes in administrative arrangements, such as the transfer of functions between departments. This authority has been exercised through the FMA Act Determination 2014/06, which was made to adjust appropriations in response to the Administrative Arrangements Order of 18 September 2013, which involved the transfer of aged care functions from the Department of Health and Ageing to the Department of Social Services. This determination reflects the ongoing adjustments required to align financial appropriations with the current organisational structure, ensuring that budgetary resources are appropriately allocated to the agencies responsible for delivering specific functions.

Scope and Application

The FMA Act Determination 2014/06, made under section 32 of the Financial Management and Accountability Act 1997, pertains to the transfer of functions related to aged care from the Department of Health and Ageing to the Department of Social Services, following the Administrative Arrangements Order of 18 September 2013. This Determination is the third in a series of appropriations transfers related to these functions, adjusting amounts in the Appropriation Act (No. 1) 2013-2014 and Appropriation Act (No. 2) 2013-2014 to reflect the new departmental allocations. The power to make such determinations is held by the Secretary of the Department of Finance, who has sub-delegated this authority to specific officials within the department. The Determination itself involves adjustments to specific appropriations without altering the total amount approved by Parliament, ensuring a balanced reallocation of funds between the affected departments. This legislative instrument does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under the FMA Act. Consultation with the Department of Social Services was undertaken in line with the Legislative Instruments Act 2003, ensuring the changes are well-considered and appropriate.

Key Provisions

The main operative sections of the FMA Act Determination 2014/06 (Section 32) involve the transfer of appropriations from the Department of Health to the Department of Social Services. This is a result of the Administrative Arrangements Order made on 18 September 2013, which transferred aged care functions from the former Department of Health and Ageing to the Department of Social Services (Section 32). The Act mandates that the Finance Minister, or an official delegated by the Minister, can amend appropriations in the Appropriation Acts when functions are transferred between agencies (Section 32). The current Determination specifically affects Schedule 1 to the Appropriation Act (No. 1) 2013-2014 and Schedule 2 to the Appropriation Act (No. 2) 2013-2014, redistributing funds without altering the total appropriation amount (Summary of Changes). The obligations imposed by this Determination on the parties it governs, primarily the Department of Health and the Department of Social Services, include ensuring the accurate and timely transfer of funds as specified. The Department of Health is required to transfer a total of $72,163,000 from its appropriations in the Appropriation Act (No. 1) 2013-2014, while the Department of Social Services is obligated to receive and account for this amount. Similarly, the Department of Health must transfer $13,782,000 from its appropriations in the Appropriation Act (No. 2) 2013-2014, with the Department of Social Services required to accept and integrate these funds into its budget. Both departments must adhere to the stipulated amounts and timelines as outlined in the Determination. There are no explicit offences, penalties, or civil/criminal consequences detailed in the Determination itself for breach of the provisions. However, the FMA Act generally imposes strict financial management and accountability requirements, and failure to comply with these could result in disciplinary actions or financial penalties under other sections of the Act. The specific nature and extent of these consequences would depend on the context and severity of the non-compliance. The Determination focuses on the procedural aspect of fund transfer rather than punitive measures.