FMA Act Determination 2014/11 — Section 32 (Transfer of Functions from DEEWR to PM&C, Education, Employment and Social Services)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) is foundational legislation in Australia, establishing the framework for financial management and accountability within the federal government. Enacted by the Australian Parliament, the FMA Act aims to ensure that public funds are managed prudently, economically, efficiently, and effectively, and that there is transparency and accountability in the use of public resources. The FMA Act Determination 2014/11, made under section 32 of the FMA Act, addresses the problem arising from the transfer of functions from the former Department of Education, Employment and Workplace Relations (DEEWR) to other departments, including the Department of the Prime Minister and Cabinet, the Department of Education, the Department of Employment, and the Department of Social Services. This determination ensures the appropriate reallocation of appropriations in response to the administrative changes, maintaining the integrity of the overall budget while facilitating the smooth transition of responsibilities. The policy objective of this determination is to align the financial appropriations with the new departmental structures, ensuring that funding follows the functions transferred and that there is no gap or overlap in financial management.

Scope and Application

The FMA Act Determination 2014/11, made under section 32 of the Financial Management and Accountability Act 1997, is concerned with the reallocation of appropriations following the abolition of the Department of Education, Employment and Workplace Relations (DEEWR). This legislation applies to the appropriations for the Department of the Prime Minister and Cabinet, the Department of Education, the Department of Employment, and the Department of Social Services. It impacts both departmental and administered items within the Appropriation Acts (No. 1) 2013-2014 and 2012-2013, ensuring that the total amount appropriated by Parliament remains unchanged despite the transfers. The geographic reach of this Act is national, as it pertains to Commonwealth agencies and their functions. The Determination does not require a Statement of Compatibility with Human Rights, as it is exempt from disallowance under subsection 32(7) of the FMA Act. The process involved consultations with the affected departments in line with the Legislative Instruments Act 2003, ensuring a smooth transition of funds and responsibilities.

Key Provisions

The main operative sections of the FMA Act Determination 2014/11 (Section 32) involve the transfer of appropriations from the former Department of Education, Employment and Workplace Relations (DEEWR) to various other departments following the Administrative Arrangements Order made on 18 September 2013. Specifically, section 32 of the Financial Management and Accountability Act 1997 (FMA Act) empowers the Finance Minister to adjust appropriations in the Appropriation Act in response to these changes. This adjustment process ensures that the total amount appropriated by Parliament remains unchanged despite the reallocation of funds between departments. This reallocation is detailed in the Summary of Changes section of the Determination, where specific appropriations are transferred from DEEWR to the Department of the Prime Minister and Cabinet, the Department of Education, the Department of Employment, and the Department of Social Services. The obligations imposed on the parties governed by the Act include adherence to the adjustments detailed in the Determination. This means that the relevant departments must comply with the reallocation of funds as specified. The Department of Finance, through its delegation of authority, ensures that these adjustments are accurately implemented and that the financial records reflect the correct allocation of funds. The departments affected by the transfer of functions are required to ensure that their spending and budgeting align with the new appropriations outlined in the Determination. The Determination does not specify any offences or penalties for breaches; however, non-compliance with the appropriations adjustments could potentially lead to financial discrepancies and misallocation of funds. While specific penalties are not outlined in the Determination, any failure to adhere to the mandated adjustments could result in financial mismanagement, which might be subject to audit and review by the relevant authorities. The FMA Act provides a framework for financial accountability and management, and any significant non-compliance could lead to further scrutiny and corrective measures.