Explanatory Statement
Financial Management and Accountability Act 1997, Section 32 - Adjustment of appropriations on change of Agency functions
The instrument to which this explanatory statement relates
This explanatory statement relates to an instrument (the instrument) entitled “Direction under Section 32, Financial Management and Accountability Act 1997”, dated 27 April 2007 and numbered 14 of 2006-2007.
The legislative authority under which the instrument is made
Section 32 of the Financial Management and Accountability Act 1997 (‘the FMA Act’) applies if a function of an Agency (the old Agency) becomes a function of another Agency (the new Agency), either because the old Agency is abolished or for any other reason.
Subsection 32(2)(a) of the FMA Act enables the Finance Minister to, amongst other things, issue one or more directions to transfer from the old Agency to the new Agency some or all of an amount that has been appropriated for the performance of that function by the old Agency.
By way of an instrument dated 19 February 2003 made under section 62 of the FMA Act, the Finance Minister has delegated his power under section 32 to the Chief Executive of the Department of Finance and Administration. By way of an instrument dated 16 March 2007 made under section 53 of the FMA Act, the Chief Executive of the Department of Finance and Administration has, in turn, delegated the power to the General Manager, Financial Management Group, and the Division Manager, Financial Reporting and Cash Management Division. The direction is issued by the Acting Division Manager, Financial Reporting and Cash Management Division.
Purpose of the instrument
The instrument directs that departmental appropriation in the amount of $762,000 and administered appropriation in the amount of $4,768,479 provided to the Department of Agriculture, Fisheries and Forestry (DAFF) in Appropriation Act (No.1) 2006-2007 be transferred to the Department of the Environment and Water Resources (DEW). The instrument also directs that administered appropriation in the amount of $23,894,000 provided to DAFF in Appropriation Act (No. 2) 2006-2007 be transferred to DEW.
Background
On 30 January 2007, changes to the Administrative Arrangements Order resulted in the transfer of water related functions from DAFF to DEW.
Notes on the instrument
The instrument provides that the amounts set out in column 4 of the table for the appropriation items in column 1 for DAFF be transferred to DEW.
In accordance with the Legislative Instruments Act 2003, DAFF and DEW were consulted in the preparation of this instrument.