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 9 August 2007 and numbered 3 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 Division.
Purpose of the instrument
The instrument directs that departmental appropriation in the amount of $8,839,000 provided to the Office of Film and Literature Classification (OFLC) in Appropriation Act (No.1) 2007-2008 be transferred to the Attorney-General’s Department (AGD). The instrument also directs that administered appropriation for Payments to States, ACT, NT and local government in the amount of $833,000 provided to OFLC in Appropriation Act (No. 2) 2007-2008 be transferred to AGD.
Background
On 23 February 2006, the Attorney-General announced that the policy and administrative function previously held by the OFLC would be folded into AGD. On 7 July 2006, a preliminary section 32 direction was issued to transfer appropriation originally appropriated to the OFLC to AGD. This direction completes the transfer of functions from OFLC to AGD.
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 OFLC be transferred to AGD.
In accordance with the Legislative Instruments Act 2003, OFLC and AGD were consulted in the preparation of this instrument.