FMA Act Determination 2014/12 — Section 32 (Transfer of Functions from DEEWR to Employment and Social Services)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the financial management and accountability of Commonwealth agencies. The Act was introduced to address the need for a consistent and transparent system of financial management across government agencies. The FMA Act Determination 2014/12, made under section 32 of the FMA Act, was introduced by the Parliament of Australia to adjust appropriations in response to the transfer of functions from the former Department of Education, Employment and Workplace Relations (DEEWR) to other departments. This determination aims to ensure that the reallocation of funds aligns with the administrative changes and supports the continued efficient operation of government services. The determination was prepared following consultations with relevant departments and has no impact on the overall appropriations determined by Parliament.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) Determination 2014/12, made under section 32, addresses the transfer of functions from the former Department of Education, Employment and Workplace Relations (DEEWR) to the Department of Employment and the Department of Social Services. This legislative instrument aims to adjust appropriations in response to the Administrative Arrangements Order issued on 18 September 2013. The Determination is applicable to the appropriations under the Appropriation Act (No. 1) 2013-2014, where it reallocates funds from DEEWR to the new departments, specifically for employment and disability employment services, without altering the overall appropriation amount. The geographic reach of this Act is limited to the Commonwealth level, impacting federal government agencies and their financial management. No Statement of Compatibility with Human Rights is required as the Determination is exempt from disallowance, and the determination process involved consultation with relevant departments to ensure accuracy and relevance of the adjustments.

Key Provisions

The FMA Act Determination 2014/12, made under section 32 of the Financial Management and Accountability Act 1997 (FMA Act), involves the reallocation of appropriations among different government agencies. This reallocation is in response to the Administrative Arrangements Order issued on 18 September 2013, which involved the transfer of functions from the former Department of Education, Employment and Workplace Relations (DEEWR) to the Department of Employment and the Department of Social Services. The Determination specifically adjusts appropriations for employment-related functions transferred to the Department of Employment and disability employment services transferred to the Department of Social Services. The transfers are detailed in Schedule 1 of the Appropriation Act (No. 1) 2013-2014, with the Department of Employment receiving an additional $44,024,000 and the Department of Social Services receiving an additional $27,325,000. In contrast, the Department of Education, Employment and Workplace Relations sees a reduction of $44,024,000 and $27,325,000, respectively, for these functions. The Determination imposes specific obligations on the relevant government agencies to ensure the smooth transfer of functions and appropriations. The Department of Employment and the Department of Social Services must now manage the additional appropriations received, ensuring that these funds are used for the purposes outlined in the Determination. Conversely, the Department of Education, Employment and Workplace Relations must account for the reductions in appropriations by reallocating resources or by discontinuing certain activities. These obligations are critical for maintaining financial integrity and ensuring that government funds are used efficiently and effectively in accordance with the legislative intent. Failure to comply with the provisions of the Determination could potentially lead to legal consequences. Although the Determination itself does not explicitly state penalties for non-compliance, breaches of the Financial Management and Accountability Act 1997 could result in various civil or criminal penalties. For example, under section 14 of the FMA Act, any person who is found to have misused public money or who has acted dishonestly or negligently in the performance of their duties could face criminal charges. The penalties for such offences can include substantial fines and imprisonment, depending on the severity of the misconduct. Additionally, civil penalties may apply under other relevant legislation for non-compliance with financial management requirements. In summary, the FMA Act Determination 2014/12 is a legislative instrument that facilitates the transfer of appropriations between government agencies in response to changes in administrative arrangements. It imposes clear obligations on the affected departments to manage the reallocated funds appropriately. While the Determination does not specify penalties for non-compliance, the underlying FMA Act provides a framework for potential legal consequences, including criminal charges and civil penalties for misuse of public funds or dishonest conduct.