Advance to the Finance Minister – section 11 of Appropriation Act (No. 1) 2001-2002 (No. 17 of 2001-2002)

Overview

The Advance to the Finance Minister under Section 11 of the Appropriation Act (No. 1) 2001-2002 was introduced to facilitate the reallocation of funds within the fiscal year to address unforeseen expenditures or shifts in budgetary priorities. Enacted by the Australian Parliament, this legislative instrument aims to provide flexibility in managing the financial resources of Commonwealth agencies, ensuring that they can meet their operational needs effectively. The policy objective behind this enactment is to enable the government to respond promptly to changing circumstances without requiring a full parliamentary approval process, thus streamlining the budget management process. The Commonwealth Financial Reporting Unit, Department of Finance and Administration, exercises this authority to adjust appropriations as necessary, ensuring that funds are allocated where they are most needed during the financial year.

Scope and Application

The Appropriation Act (No. 1) 2001-2002, through Section 11, governs the allocation and modification of funds within the Australian Commonwealth, specifically relating to the appropriation items and their distribution among various government agencies. In this instance, the Act facilitates an increase in the appropriation for the Department of Employment and Workplace Relations, under the Administered Expenses category, with a specific focus on facilitating flexible and fair workplace relations at the enterprise level. This legislative instrument, F2007B00879, executed by Jim Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit, Budget Group, Department of Finance and Administration, ensures that the specified appropriation item is augmented by a sum of $15,036,036. This adjustment is critical in supporting the operational activities and initiatives of the Department, ensuring compliance with the budgetary provisions outlined in the Act. The application of this Act is confined to the Commonwealth level, directly impacting the financial operations and resource allocation of the designated government entity.

Key Provisions

Section 11 of the Appropriation Act (No. 1) 2001-2002 provides the authority for the Finance Minister to adjust appropriation items for specific government agencies. In this case, the Branch Manager, Commonwealth Financial Reporting Unit, Budget Group, Department of Finance and Administration, has exercised this power to increase an appropriation item for the Department of Employment and Workplace Relations by $15,036,036 for the fiscal year 2001-2002. This adjustment is intended to support the agency's activities under the administered expenses related to flexible and fair workplace relations at the enterprise level, as outlined in the appropriation item "Administered Expenses – Outcome 2." The Act imposes specific obligations on the entities it governs, requiring them to comply with the appropriation adjustments as determined by the Finance Minister or an authorised officer. In this instance, the Department of Employment and Workplace Relations must ensure that the additional funds are allocated appropriately and used in accordance with the intended purpose of flexible and fair workplace relations. This includes maintaining proper financial records and reporting on the utilisation of the funds to the relevant authorities. Breach of the provisions in the Appropriation Act (No. 1) 2001-2002 can lead to both civil and criminal consequences. For instance, misuse of appropriated funds or failure to comply with the reporting requirements can result in disciplinary action, financial penalties, or even criminal charges. The specific penalties for such breaches are not outlined in the legislative instrument itself but are generally prescribed under broader financial management and public administration laws in Australia. These can include fines, imprisonment, or both, depending on the severity and intent of the breach.