Advance to the Finance Minister – section 11 of Appropriation Act (No. 1) 2002-2003 (No. 10 of 2002-2003)

Overview

The Appropriation Act (No. 1) 2002-2003, enacted on 5 May 2003, was introduced by the Parliament of Australia to address the need for more precise and timely adjustments to budgetary allocations in response to emerging government priorities and financial requirements. This legislation provides a framework for the executive branch to reallocate funds within the confines of the annual budget, ensuring that government operations can adapt to unforeseen circumstances or changing policy directions. The policy objective outlined in the Act is to facilitate sound and well-coordinated government policies, programmes, and decision-making processes by enabling the efficient redeployment of funds to meet the evolving needs of government agencies, in this case, the Department of the Prime Minister and Cabinet. The enacting body, the Parliament of Australia, empowered the Finance Minister to make specific appropriations as detailed in the Act. In this instance, the Manager of the Financial Reporting and Cash Management Division of the Department of Finance and Administration authorised an increase in the appropriation item for Administered Expenses for the Department of the Prime Minister and Cabinet by $4,854,000, ensuring the agency could effectively manage its programmes and decision-making processes. This legislative instrument underscores the importance of flexibility in financial management to support the efficient functioning of the government.

Scope and Application

Section 11 of the Appropriation Act (No. 1) 2002-2003 applies to the reallocation of funds within the Commonwealth's budget for the financial year 2002-2003. This legislation pertains specifically to the Department of the Prime Minister and Cabinet, whose appropriation for administered expenses under Outcome 1, which encompasses sound and well-coordinated government policies, programs, and decision-making processes, has been increased by $4,854,000. The amendment is executed by the Manager, Financial Reporting and Cash Management Division, Financial Management Group, Department of Finance and Administration, thereby ensuring that the reallocation is conducted within the legal framework of the appropriation act. The changes are effective as of the date of issue, 5 May 2003, and pertain to the Commonwealth of Australia. This Act does not specify exclusions, exemptions, or thresholds but allows for further detail or conditions through subordinate instruments if necessary.

Key Provisions

The primary operative sections of the legislative instrument F2007B00907 are found in Section 11 of the Appropriation Act (No.1) 2002-2003. This section allows for the determination of an increase in appropriations for specified agencies. In this particular case, the Manager, Financial Reporting and Cash Management Division, Financial Management Group, Department of Finance and Administration has determined that the appropriation for the Department of the Prime Minister and Cabinet will be increased by $4,854,000 under the administered expenses for Outcome 1, which pertains to sound and well-coordinated government policies, programs, and decision-making processes. This adjustment is intended to ensure that the department has the necessary funds to carry out its functions effectively. The Act imposes specific obligations and requirements on the parties it governs. The Manager, Financial Reporting and Cash Management Division, within the Financial Management Group of the Department of Finance and Administration, is responsible for determining and authorising any increases in appropriations as provided for in the Act. This determination must be made in accordance with the provisions of Section 11 of the Appropriation Act (No.1) 2002-2003 and must be clearly documented, as evidenced by the formal statement provided by Jim Kerwin. Additionally, any such determination must be consistent with the budgetary framework and financial management policies established by the government. In terms of offences, penalties, or consequences for breaches, the legislative instrument itself does not specify any particular penalties for failing to comply with the determination of an appropriation increase. However, the broader legislative framework under which this determination is made may include provisions for penalties. For instance, if the appropriation increase is not implemented correctly or is misused, it could lead to legal actions under the Public Governance, Performance and Accountability Act 2013 or other relevant legislation. These actions could result in financial penalties, administrative sanctions, or other legal consequences depending on the nature and severity of the breach. Additionally, any failure to comply with the budgetary process could lead to accountability issues for those responsible for the financial management of the government.