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 2 July 2007 and numbered 2 of 2007-2008.
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 effective from 1 July 2007 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 effective from 1 July 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. This instrument commences on date of registration, effective on 2 July 2007.
Purpose of the instrument
The instrument directs that departmental appropriation in the amount of $84,400,000 provided to the Department of Employment and Workplace Relations (DEWR) in Appropriation Act (No.1) 2007-2008 be transferred to the Workplace Authority (WPA). The instrument also directs that departmental appropriation in the amount of $1,050,000 provided to DEWR in Appropriation Act (No. 1) 2006-2007 be transferred to WPA. The instrument also directs that departmental equity injections appropriation in the amount of $350,000 provided to DEWR in Appropriation Act (No. 2) 2007-2008 be transferred to WPA.
Background
On 28 May 2007, a decision was made to transfer the Office of the Employment Advocate function from the Department of Employment and Workplace Relations to the Workplace Authority. The Workplace Authority was established on 1 July 2007, following the passing of the Workplace Relations Amendment (A Stronger Safety Net) Act 2007.
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 DEWR be transferred to WPA.
In accordance with the Legislative Instruments Act 2003, DEWR and WPA were consulted in the preparation of this instrument.