FMA Act Determination 2014/07 — Section 32 (Transfer of Functions from Health to Social Services)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) is a foundational piece of legislation designed to ensure robust financial management and accountability within Australian government agencies. Enacted by the Commonwealth Parliament, the FMA Act addresses the need for clear financial oversight and reporting mechanisms to maintain public trust and fiscal responsibility. The Act enables the Finance Minister to make determinations for the reallocation of funds when functions are transferred between agencies, ensuring that budgetary allocations reflect the current administrative structure and responsibilities. The FMA Act Determination 2014/07, specifically, was introduced to adjust appropriations in response to the transfer of aged care functions from the former Department of Health and Ageing to the Department of Social Services, as per the Administrative Arrangements Order of 18 September 2013. This Determination is the fourth in a series of transfers related to this function shift, reflecting the ongoing realignment of responsibilities and ensuring that financial resources are appropriately allocated to the agencies managing these critical services.

Scope and Application

The FMA Act Determination 2014/07, made under section 32 of the Financial Management and Accountability Act 1997 (FMA Act), pertains to the transfer of appropriations from the Department of Health and Ageing to the Department of Social Services following the Administrative Arrangements Order of 18 September 2013. This Determination specifically adjusts the appropriations in relation to aged care functions, marking the fourth such transfer. It is a legislative instrument under the Legislative Instruments Act 2003 and has been made by an official within the Department of Finance, who was sub-delegated this power by the Secretary. The Determination does not require a Statement of Compatibility with Human Rights as it is exempt from disallowance under the FMA Act. The changes made by this Determination involve an adjustment of $28,000,000 from the Department of Health and Ageing to the Department of Social Services, with no overall change in the total amount appropriated by Parliament.

Key Provisions

The FMA Act Determination 2014/07 (Section 32) made under section 32 of the Financial Management and Accountability Act 1997 (FMA Act) adjusts appropriations in response to the transfer of aged care functions from the Department of Health and Ageing to the Department of Social Services. This transfer is the fourth instance, following earlier transfers in 2013 and 2014, and involves a reallocation of $28,000,000 without altering the total amount appropriated by Parliament. The Finance Minister, who has delegated this power to the Secretary of the Department of Finance, authorised this transfer. This determination is exempt from disallowance under the FMA Act, meaning it does not require a Statement of Compatibility with Human Rights. The obligations imposed by this Determination on the Department of Health and Ageing and the Department of Social Services primarily involve the administrative adjustment of their budgets to reflect the transfer of funds. The Department of Health and Ageing is required to reduce its appropriation by $28,000,000, while the Department of Social Services must increase its appropriation by the same amount. This ensures a smooth transition of financial responsibilities related to aged care functions, maintaining the overall budget integrity. Any breaches of the obligations set forth in this Determination could have serious administrative and financial implications. While the Determination itself does not specify particular offences, penalties, or civil/criminal consequences, the FMA Act provides a framework under which non-compliance could be addressed. Typically, non-compliance with appropriations as determined by the Finance Minister could lead to disciplinary actions against public officers, financial penalties, or other corrective measures as prescribed by the FMA Act. The precise penalties would depend on the nature and extent of the breach, but they could include administrative sanctions, financial penalties, or legal action to enforce compliance.