Advance to the Finance Minister – section 12 of Appropriation Act (No. 2) 2002-2003 (No. 12 of 2002-2003)

Overview

The Appropriation Act (No. 2) 2002-2003, enacted by the Parliament of Australia, was introduced to address the need for adjustments to appropriations and funding allocations for government departments and agencies throughout the fiscal year. This legislative instrument serves to provide the necessary flexibility to ensure that public funds are efficiently and effectively allocated to meet the evolving requirements of the nation. This particular legislative instrument, F2007B00911, issued by the Manager of Financial Reporting and Cash Management Division within the Department of Finance and Administration, allows for an increase in appropriation for the Department of Transport and Regional Services to ensure a better transport system for Australia. The policy objective of this legislative instrument is to facilitate the reallocation of funds to support the government's commitment to improving the nation's transport infrastructure and services.

Scope and Application

The Appropriation Act (No. 2) 2002-2003, under Section 12, authorises the Finance Minister to adjust appropriations as necessary. In this case, Jim Kerwin, Manager of Financial Reporting and Cash Management Division in the Department of Finance and Administration, has determined an increase to a specific appropriation for the Department of Transport and Regional Services. This adjustment pertains to funding allocated for "Specific Payments to the States and Territories – Outcome 1: A better transport system for Australia." The appropriation item in question has been augmented by $8,692,728, reflecting a direct allocation intended to bolster the national transport infrastructure. The amendment applies solely to the specified appropriation item and agency, impacting only the financial management of the Department of Transport and Regional Services within the context of its transport outcomes. This adjustment is confined to the financial year 2002-2003 and does not extend to other appropriations or entities unless further specified by subsequent legislative or administrative action.

Key Provisions

Section 12 of the Appropriation Act (No. 2) 2002-2003 provides the legal basis for the advancement of funds to the Finance Minister. Under this section, the Manager of the Financial Reporting and Cash Management Division in the Department of Finance and Administration has the authority to determine an increase in appropriations for specific items and agencies. In the present legislative instrument (F2007B00911), this authority is exercised to increase the appropriation item for the Department of Transport and Regional Services by $8,692,728. This increment is allocated for "Specific Payments to the States and Territories – Outcome 1: A better transport system for Australia." The obligations imposed by this legislation are primarily administrative and financial in nature. The Manager, as authorised by Section 12, must ensure that the increased appropriation is accurately recorded and managed within the financial systems of the Department of Finance and Administration. This includes updating the relevant financial records, ensuring compliance with budgetary constraints, and reporting the changes to any necessary oversight bodies. The Department of Transport and Regional Services, on the other hand, must utilise the additional funds as intended for improving the transport system in Australia, adhering to any specific guidelines or conditions attached to the appropriation. Breaches of the obligations outlined in this legislation could lead to various consequences, both civil and criminal. While the specific penalties are not detailed in the legislative instrument itself, breaches of appropriation acts can generally result in administrative penalties, financial repercussions, and potential legal action. Civil penalties might include fines or repayment of misused funds, while criminal penalties could range from fines to imprisonment, depending on the severity and intent of the breach. It is essential for both the Manager and the Department of Transport and Regional Services to comply strictly with the provisions to avoid these consequences. The exact penalties would be determined in accordance with other relevant legislation, such as the Public Governance, Performance and Accountability Act 2013, which governs public sector financial management.