FMA Act Determination 2014/10 — Section 32 (Transfer of Functions from Social Services to PM&C)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for financial management, accountability, and reporting in the Australian public sector. This Act aims to ensure that public money is used effectively, efficiently, and economically, and that public sector entities are held accountable for their financial and performance outcomes. The FMA Act was introduced by the Australian Parliament to address the need for a robust financial management framework that supports transparency, efficiency, and accountability in the public sector. The FMA Act Determination 2014/10, made under section 32 of the FMA Act, was introduced to adjust appropriations in response to the Administrative Arrangements Order of 18 September 2013, which transferred functions relating to indigenous affairs from the Department of Families, Housing, Community Services and Indigenous Affairs to the Department of the Prime Minister and Cabinet. This Determination, which is the fourth in a series of adjustments, redistributes appropriations without changing the total amount appropriated by Parliament. The policy objective is to ensure that financial resources are aligned with the new administrative arrangements, thereby maintaining fiscal integrity and accountability in the transfer of functions.

Scope and Application

The FMA Act Determination 2014/10 is a legislative instrument made under section 32 of the Financial Management and Accountability Act 1997, designed to adjust appropriations for specific agencies in response to the Administrative Arrangements Order of 18 September 2013. This determination specifically addresses the transfer of functions relating to indigenous affairs from the Department of Families, Housing, Community Services and Indigenous Affairs to the Department of the Prime Minister and Cabinet, and it is the fourth in a series of determinations related to this transfer. The Secretary of the Department of Finance, who has been delegated the power to make such determinations, has sub-delegated this authority to certain officials within the department. This determination results in a transfer of $17,500,000 from the Department of Social Services to the Department of the Prime Minister and Cabinet without altering the total amount appropriated by Parliament. The process of making this determination involved consultation with the Department of Social Services and the Department of the Prime Minister and Cabinet, as required by the Legislative Instruments Act 2003. No Statement of Compatibility with Human Rights is required for this determination, as it is exempt from disallowance under the FMA Act.

Key Provisions

The key operative sections of the FMA Act Determination 2014/10 are found within section 32, which pertains to the transfer of functions from one agency to another. This Determination specifically adjusts appropriations in response to the Administrative Arrangements Order made on 18 September 2013, where functions relating to indigenous affairs were transferred from the Department of Families, Housing, Community Services and Indigenous Affairs to the Department of the Prime Minister and Cabinet (section 32(1)). This adjustment reflects the transfer of appropriations necessary to align with the new administrative arrangements, ensuring that the financial allocations match the reassignment of responsibilities. The obligations imposed by this Determination on the relevant parties include ensuring that the appropriations are accurately reflected in the relevant Appropriation Acts. Specifically, the Department of the Prime Minister and Cabinet is required to account for the additional $17,500,000 in appropriations, while the Department of Social Services must reflect a corresponding decrease of the same amount (section 32(2)). The Secretary of the Department of Finance, who has been delegated the authority to make such determinations, must ensure that the changes do not alter the total amount appropriated by Parliament, thus maintaining fiscal integrity. In terms of enforcement and consequences, the Determination does not explicitly outline offences or penalties for non-compliance. However, it is important to note that any failure to adhere to the adjustments specified could potentially lead to discrepancies in budget allocations and financial reporting. The broader legislative framework under which this Determination operates, including the Financial Management and Accountability Act 1997, may impose further obligations and consequences for non-compliance. These could include administrative sanctions or financial penalties as prescribed by relevant legislation.