Advance to the Finance Minister – section 11 of Appropriation Act (No. 1) 2001-2002 (No. 1 of 2001-2002)

Overview

The Legislative Instrument F2007B00846, dated 2 August 2001, was enacted to address the need for an adjustment in the appropriations for the Department of Foreign Affairs and Trade, as authorised by Section 11 of the Appropriation Act (No. 1) 2001-2002. This adjustment was intended to ensure that the department had sufficient funding to support its activities aimed at enhancing Australia's public understanding and image abroad. The policy objective behind this legislative instrument was to provide the Department of Foreign Affairs and Trade with the necessary financial resources to effectively execute its mandate concerning Australia's foreign policy and international presence. The enactment was authorised by Jim Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit, Budget Group, within the Department of Finance and Administration, ensuring that the financial adjustments were made in compliance with the existing appropriation act and pending the presentation of Additional Estimates.

Scope and Application

The legislative instrument F2007B00846 pertains to the appropriation of funds within the Australian government, specifically addressing an increase in allocated funds for a particular appropriation item for the financial year 2001-2002. The determination is made by Jim Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit within the Budget Group of the Department of Finance and Administration. This action is authorised under Section 11 of the Appropriation Act (No. 1) 2001-2002, which allows for adjustments to appropriations pending the submission of Additional Estimates. The specified appropriation item, which pertains to the Department of Foreign Affairs and Trade, involves an increase of $11,660,000 for administered expenses. This increase is intended to support Outcome 3, which aims to enhance public understanding in Australia and overseas of Australia’s foreign policy and promote a positive image of Australia internationally. This legislative instrument is applicable to the Commonwealth level, affecting the financial allocations within the federal government's budget framework.

Key Provisions

Section 11 of the Appropriation Act (No. 1) 2001-2002 provides the authority for the finance minister to advance funds to specific government agencies for certain appropriation items. In this instance, the Branch Manager of the Commonwealth Financial Reporting Unit, Budget Group, Department of Finance and Administration, Jim Kerwin, has exercised this authority to increase the appropriation for the Department of Foreign Affairs and Trade by $11,660,000. This adjustment pertains to administered expenses under Outcome 3, which focuses on enhancing public understanding in Australia and overseas of Australia’s foreign policy and fostering a positive image of Australia internationally. This change is pending the issuance of Additional Estimates, as stipulated by the Act (Section 11). Under the Act, the obligations imposed on the Department of Foreign Affairs and Trade include the effective and efficient use of the additional funds to achieve the objectives outlined in Outcome 3. This means that the department must ensure that the increased budget is used to enhance public understanding of Australia’s foreign policy and to improve Australia’s international image. The Department must also ensure that all expenditures comply with the terms and conditions set forth in the Appropriation Act and any relevant financial management policies and guidelines. Failure to comply with the provisions of the Appropriation Act or misuse of the advanced funds could result in various consequences. While the Act does not explicitly state penalties for breaches, breaches of appropriation provisions can lead to financial irregularities, which may be subject to audit and investigation by the Australian National Audit Office. Additionally, if the misuse of funds leads to criminal activity, such as fraud or embezzlement, individuals involved could face criminal charges. The severity of penalties would depend on the specific circumstances and applicable criminal laws, which could include substantial fines and imprisonment. In summary, Section 11 of the Appropriation Act (No. 1) 2001-2002 allows for the advancement of funds to specific agencies pending Additional Estimates, with the Branch Manager of the Commonwealth Financial Reporting Unit, Budget Group, Department of Finance and Administration, having the authority to make such determinations. The Department of Foreign Affairs and Trade is obligated to use the additional funds effectively to achieve its stated objectives. Non-compliance or misuse of these funds could result in severe consequences, including potential audits, investigations, and criminal charges.