Issued by the authority of the Minister for Finance and Deregulation
The instrument to which this explanatory statement relates | Determination to Reduce Administered Appropriations (No. 2 of 2009‑2010) |
Date instrument was made | 23 June 2010 |
The legislative authority under which the instrument is made | Subsection 11(2)(b) of Appropriation Act (No. 1) 2008‑2009 enables the Minister for Finance and Deregulation (Finance Minister) to make a determination reducing an administered item to the required amount specified in the determination. The provision was included in the annual Appropriation Acts to allow the Finance Minister to determine that a required amount published in the annual report of an agency is taken to be the required amount specified in the determination. The power in subsection 11(2)(b) ensures that the amount published in an agency annual report for the administered item can be changed, if, for example, the amount is erroneous or requires updating after agency annual reports are published. Determinations made under subsection 11(2)(b) are legislative instruments and are disallowable. |
Purpose and effect of the instrument | The Instrument determines that the administered item for the National Health and Medical Research Council (NHMRC) in Appropriation Act (No. 1) 2008‑2009 is reduced to the required amount and applies as if the amount specified in the agency annual report was the required amount specified in the determination. The effect of this Instrument is to reduce the administered item for NHMRC in Appropriation Act (No. 1) 2008‑2009 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination. |
Background to items in the Schedules | The relevant reference for the NHMRC’s Annual Report 2008‑2009 is: page 214, Financial Statements, Notes to and Forming Part of the Financial Statements as at 30 June 2009, Note 22: Appropriations, Table A: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations – Administered appropriations reduced (non CAC) (Appropriation Act s 11). The requirement for this determination is to correct the Annual Report, as Note 22 did not state the correct amount. |
Notes on the Instrument | The Schedule contains a reduction determination for NHMRC under Appropriation Act (No. 1) 2008-2009. The table provides the relevant agency, appropriation item and outcome number contained in the relevant annual Appropriation Act in column 1, under the legislative authority in column 2, the amount appropriated by Parliament against that appropriation item and outcome in column 3, the amount required by the agency against that appropriation item and outcome in column 4, and the amount reduced in column 5. The amount required by the agency in column 4 is the amount that is taken to be the specified amount required for the appropriation item for the purposes of the agency’s annual report. In accordance with the Legislative Instruments Act 2003, NHMRC were consulted in the preparation of this Instrument. |
Overview
The Determination to Reduce Administered Appropriations (No. 2 of 2009-2010), issued on 23 June 2010 by the Minister for Finance and Deregulation, is an instrument made under the authority of the Appropriation Act (No. 1) 2008-2009. This determination specifically addresses an error in the National Health and Medical Research Council's (NHMRC) annual report for the financial year 2008-2009, where the required amount for certain administered appropriations was incorrectly stated. The purpose of the determination is to correct this error by reducing the administered item for NHMRC to the amount specified in the agency's annual report. The instrument ensures that the appropriation amount reflected in the agency's financial statements aligns with the required amount, thereby maintaining the accuracy and integrity of the appropriations reported by the NHMRC.
Scope and Application
The Determination to Reduce Administered Appropriations (No. 2 of 2009-2010) is an instrument issued under the authority of the Minister for Finance and Deregulation, applying specifically to the National Health and Medical Research Council (NHMRC). This legislative instrument was made on 23 June 2010, utilising the power conferred by subsection 11(2)(b) of the Appropriation Act (No. 1) 2008-2009. It serves to correct an error in the NHMRC’s annual report, ensuring that the amount specified in the annual report is taken as the required amount for the administered item. This legislative instrument is disallowable, meaning it can be annulled by either house of Parliament. The purpose and effect of this instrument is to amend the administered item for the NHMRC as per the annual appropriation act, reflecting the correct amount as stated in the agency’s annual report. The correction is necessary because the original report contained an erroneous amount, and the instrument provides the specific details of the correction, including the appropriation item and the amount reduced. The instrument is subject to consultation requirements under the Legislative Instruments Act 2003, ensuring that NHMRC was involved in its preparation.
Key Provisions
The primary operative section of the Determination to Reduce Administered Appropriations (No. 2 of 2009-2010) (the Determination) is subsection 11(2)(b) of the Appropriation Act (No. 1) 2008-2009 (subsection 11(2)(b)). This subsection empowers the Minister for Finance and Deregulation to reduce an administered item in the Appropriation Act to a specified amount, ensuring accuracy and alignment with the agency's annual report. The Determination specifies that the administered item for the National Health and Medical Research Council (NHMRC) is reduced to the required amount, as noted in the agency's annual report.
Under the Act, the Minister for Finance and Deregulation has a statutory duty to ensure that the appropriations listed in the annual Appropriation Acts align with the amounts published in the agency's annual report. This includes correcting any discrepancies or errors that may occur post-publication of the report. The Determination formalises this process by adjusting the amount specified in the annual report as the required amount for the appropriation item. Additionally, the Act mandates that the Minister consults with the relevant agencies, such as NHMRC, before making such determinations. This consultation is aimed at ensuring that the adjustments are accurate and reflect the true financial requirements of the agency.
The Determination also imposes specific obligations on the entities it governs. NHMRC, as the entity affected by this Determination, must ensure the accuracy of the figures published in its annual report. Furthermore, the Minister for Finance and Deregulation must adhere to the legislative process, including the requirement to consult with NHMRC, before issuing the Determination. The Minister must also ensure that the Determination is in line with the legislative authority granted under subsection 11(2)(b) of the Appropriation Act (No. 1) 2008-2009.
For breach of the obligations imposed by the Act, there may be civil and criminal consequences. The Determination is a legislative instrument and, as such, is subject to disallowance under the Legislative Instruments Act 2003. If the Determination is found to be in error or not in compliance with the legislative authority, it can be disallowed by either House of Parliament. Additionally, any failure by the Minister to consult with the relevant agency, as required, could result in the Determination being deemed invalid. There are no explicit penalties stated in the text for these breaches, but the disallowance process serves as a significant deterrent and corrective measure.