Explanatory Statement
Financial Management and Accountability Act 1997, Section 32 - Adjustments 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 6 January 2004 and numbered 25 of 2004-2005.
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.
In an instrument dated 12 February 2003, the Finance Minister has authorised the person holding the position of SES Band 2, Financial Reporting and Cash Management Division, in the Department of Finance and Administration to exercise the power provided for under subsection 32(2)(a) of the FMA Act.
Purpose of the instrument
The instrument directs that Administered appropriation of $19,772,479, provided to the Department of Immigration and Multicultural and Indigenous Affairs in Appropriation Act (No. 1) 2004-05, be transferred to three Administered appropriations for the Department of Communications, Information Technology and the Arts.
Background
On 18 December 2003, the Governor-General issued an Administrative Arrangements Order which was gazetted in Special Notices Gazette S230 of 25 June 2004, transferring certain Indigenous affairs functions, namely the Broadcasting Programme, the Art, Culture and Language Programme and the Sport and Recreation Programme, from the Department of Immigration and Multicultural and Indigenous Affairs to the Department of Communications, Information Technology and the Arts.
An appropriation adjustment, pursuant to section 32 of the FMA Act, is required to ensure that appropriation provided to the Department of Immigration and Multicultural and Indigenous Affairs for performance of the functions is transferred to the Department of Communications, Information Technology and the Arts.
Notes on the instrument
The instrument provides that the moneys listed in column 4 of the schedule for the Department of Immigration and Multicultural and Indigenous Affairs item be transferred to the Department of Communications, Information Technology and the Arts item listed in column 1.