FMA Act Determination 2014/08 — Section 32 (Transfer of Functions from DRET to Industry)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) is a pivotal piece of legislation designed to ensure robust financial management and accountability within the Australian government. Enacted to address the need for clear financial oversight and appropriation processes, the FMA Act provides a framework for the effective management of public funds. One of the mechanisms under this Act is the ability to transfer appropriations between agencies, as evidenced by the FMA Act Determination 2014/08 — Section 32 (Transfer of Functions from DRET to Industry). This particular determination was introduced in response to the administrative restructuring that saw functions transferred from the Department of Resources, Energy and Tourism to the Department of Industry. The enactment of this determination by the Parliament of Australia aims to ensure that appropriations are adjusted in line with the new administrative arrangements, thereby maintaining the integrity and purpose of the original appropriations made by Parliament.

Scope and Application

The Financial Management and Accountability Act 1997 FMA Act Determination 2014/08 — Section 32 (Transfer of Functions from DRET to Industry) pertains to the reallocation of appropriations within the Australian Commonwealth government, specifically to accommodate the transfer of functions from the Department of Resources, Energy and Tourism (DRET) to the Department of Industry. This Determination is part of a series of legislative adjustments resulting from the Administrative Arrangements Order issued on 18 September 2013, and it specifically addresses the third transfer of appropriations following the abolition of DRET. The Determination affects Schedule 1 to the Appropriation Act (No. 1) 2013-2014 by transferring $135,017,000 from DRET to the Department of Industry, ensuring that the total amount appropriated by Parliament remains unchanged. The power to make such determinations under section 32 of the FMA Act has been delegated by the Finance Minister to the Secretary of the Department of Finance, who in turn has sub-delegated this authority to certain Senior Executive Service officials. This Determination is exempt from disallowance and did not require a Statement of Compatibility with Human Rights as it is not subject to disallowance under subsection 32(7) of the FMA Act.

Key Provisions

The FMA Act Determination 2014/08 — Section 32 (Transfer of Functions from DRET to Industry) primarily addresses the reallocation of funds due to the transfer of functions from the Department of Resources, Energy and Tourism (DRET) to the Department of Industry. This transfer is pursuant to the Administrative Arrangements Order issued on 18 September 2013. The Determination, under section 32 of the Financial Management and Accountability Act 1997 (FMA Act), modifies the appropriations listed in Schedule 1 to the Appropriation Act (No. 1) 2013-2014. Specifically, it reallocates $135,017,000 from the DRET to the Department of Industry, with no overall change to the total appropriations set by Parliament. The obligations imposed by this Determination primarily concern the departments involved in the transfer, namely the Department of Industry and the Department of Resources, Energy and Tourism. These departments must ensure that the reallocation of funds is accurately reflected in their financial records and that the adjustments comply with the provisions outlined in the Determination. The Department of Finance, which made the Determination, must also ensure that the reallocation adheres to the requirements of the FMA Act and other relevant legislative frameworks. The Determination does not specify any explicit offences or penalties for breaches; however, any failure to comply with the appropriations as adjusted by the Determination could potentially lead to administrative or legal consequences under the FMA Act or other related legislation. The FMA Act provides for a range of enforcement mechanisms, including financial penalties and other corrective actions, for non-compliance with appropriation acts and related determinations. It is also important to note that the Determination is exempt from disallowance under section 32(7) of the FMA Act, which means that a Statement of Compatibility with Human Rights is not required. The process of consultation and impact assessment has been conducted in line with the requirements of Part 3 of the Legislative Instruments Act 2003. The Department of Industry was consulted in the preparation of the Determination to ensure that the transfer of functions and appropriations is implemented smoothly and effectively. This consultation helps to mitigate any potential adverse impacts on the operations of the affected departments and ensures that the reallocation of funds is managed in a transparent and accountable manner. Overall, the Determination is a technical adjustment to the appropriations as necessitated by the transfer of functions from DRET to the Department of Industry, with a focus on ensuring that financial management and accountability are maintained throughout the process.