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 11 March 2005 and numbered 32 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.
As noted in 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 30 November 2004, the Chief Executive of the Department of Finance and Administration has, in turn, delegated the power to the General Manager, Financial Management Group.
Purpose of the instrument
The instrument directs that departmental outputs appropriation of $1,051,000, provided to the Department of Employment and Workplace Relations in Appropriation Act (No. 1) 2004-05, be transferred to the Department of Human Services.
Background
On 26 October 2004, the Governor-General issued an Administrative Arrangements Order which was gazetted in Special Notices Gazette S427 of 27 October 2004, making the Department of Human Services responsible for the development, delivery and coordination of government services, and for monitoring and management of service delivery and purchaser/provider relationships involving Centrelink, the Health Insurance Commission, the Child Support Agency, the Australian Hearing, Health Services Australia and CRS Australia. This arrangement was mirrored in the subsequent Administrative Arrangements Order issued by the Governor-General on 16 December 2004 and gazetted in Special Notices Gazette S 518 of 17 December 2004.
One of the implications of the above is that responsibility for monitoring and management of service delivery and purchaser/provider relationships for services provided to eligible income support recipients and job seekers, previously undertaken by Department of Employment and Workplace Relations, has been transferred to the Department of Human Services.
An appropriation adjustment, pursuant to section 32 of the FMA Act, is required to ensure that appropriation provided to the Department of Employment and Workplace Relations for performance of the functions is transferred to the Department of Human Services.
Notes on the instrument
The instrument provides that the moneys listed in column 4 of the schedule for the Department of Employment and Workplace Relations item be transferred to the Department of Human Services item listed in column 1.