EXPLANATORY STATEMENT
Financial Management and Accountability Act 1997
FMA Act Determination 2014/09 — Section 32 (Transfer of Functions from Immigration 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 further 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 migrant settlement and multicultural affairs transferred from the Department of Immigration and Border Protection (previously the Department of Immigration and Citizenship) 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 Immigration and Citizenship being deemed as references to the Department of Immigration and Border Protection, and 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 third transfer of appropriations in relation to the transfer of migrant settlement and multicultural affairs functions. An initial transfer of appropriations occurred on 31 October 2013, under FMA Act Determination 2013/11 — Section 32 (Transfer of Functions from Immigration to Social Services and Industry). A second transfer occurred on 4 March 2014, under FMA Act Determination 2014/04 — Section 32 (Transfer of Functions from Immigration to Social Services).
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 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 to 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
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 Immigration and Border Protection and the Department of Social Services were 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 Social Services | Departmental item | Appropriation Act (No. 1) 2013-2014 | +4,756 | |
Department of Immigration and Citizenship | Departmental item | Appropriation Act (No. 1) 2013-2014 | | -4,756 |
| | Total | +4,756 | -4,756 |
The Determination affects Schedule 1 to the Appropriation Act (No. 1) 2012-2013 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 Social Services | Departmental item | Appropriation Act (No. 1) 2012-2013 | +7,386 | |
Department of Immigration and Citizenship | Departmental item | Appropriation Act (No. 1) 2012-2013 | | -7,386 |
| | Total | +7,386 | -7,386 |
Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted to ensure that Australian government agencies are held accountable for their financial management practices and to provide mechanisms for the efficient allocation and use of public funds. The FMA Act Determination 2014/09 — Section 32 (Transfer of Functions from Immigration to Social Services) was introduced to address the administrative changes resulting from the transfer of certain functions from the Department of Immigration and Border Protection to the Department of Social Services, as mandated by the Administrative Arrangements Order on 18 September 2013. This determination was made under section 32 of the FMA Act, which allows the Finance Minister to adjust appropriations in response to such transfers. The purpose of this specific determination was to further adjust the amounts appropriated to the relevant agencies in light of these transfers, ensuring a seamless reallocation of resources without altering the overall appropriation amount set by Parliament. This legislative instrument was developed in consultation with the affected departments, reflecting the need for precise and efficient financial management in the context of administrative reorganisation.
Scope and Application
The FMA Act Determination 2014/09, made under section 32 of the Financial Management and Accountability Act 1997, is designed to adjust the appropriations for certain agencies following 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. This transfer was a result of the Administrative Arrangements Order of 18 September 2013. The Determination specifically reallocates funds within the Appropriation Acts (No. 1) 2013-2014 and 2012-2013, ensuring that the total appropriations remain unchanged. The Secretary of the Department of Finance, having been delegated this power by the Finance Minister, made this Determination in consultation with the affected departments. The changes are confined to reallocating the specified amounts between the Department of Social Services and the Department of Immigration and Citizenship, without any alteration to the overall budget approved by Parliament.
Key Provisions
The main operative sections of the FMA Act Determination 2014/09, particularly section 32, permit the Finance Minister to adjust the appropriations of particular agencies in response to the transfer of functions between them. This Determination specifically adjusts the appropriations of the Department of Social Services and the Department of Immigration and Border Protection, in line with the transfer of migrant settlement and multicultural affairs functions from the latter to the former (section 32(1)). The changes in appropriation are detailed in the schedules of the Appropriation Acts (No. 1) for the years 2013-2014 and 2012-2013, where the Department of Social Services receives additional funding and the Department of Immigration and Border Protection sees a corresponding reduction (Schedule 1, paragraphs 1 to 4).
The obligations and requirements imposed by the Act on the parties involved include ensuring that any transfer of appropriations is accurately reflected in the relevant appropriation acts and that the total amount appropriated by Parliament remains unchanged. The Department of Finance, as the body responsible for making these determinations, must ensure that the adjustments are made correctly and that any legislative instruments created under the Act comply with all relevant laws and regulations. Furthermore, the Act requires consultation with the affected departments to ensure that the changes are implemented smoothly and effectively.
In terms of offences, penalties, or civil/criminal consequences for breach, the FMA Act Determination 2014/09 does not explicitly state any penalties for non-compliance. However, any failure to properly adjust appropriations or to comply with the Act could potentially lead to legal challenges or administrative penalties, as the Act is designed to ensure the proper management and accountability of public funds. The implications of non-compliance could include financial discrepancies, audits, or other forms of oversight by the relevant authorities.
The FMA Act itself does not specify maximum penalties for breaches of the Act or its determinations, as these are typically outlined in other related legislation or administrative guidelines. However, non-compliance with financial management and accountability requirements can lead to significant legal and financial repercussions for the involved parties, including potential fines, corrective actions, or other sanctions imposed by the relevant oversight bodies.
Overall, the FMA Act Determination 2014/09 is a legislative instrument designed to facilitate the smooth transfer of functions and associated appropriations between government departments, ensuring that public funds are managed in accordance with the requirements of the FMA Act and other relevant legislation.