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 14 April 2005 and numbered 34 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 Division Manager, Financial Reporting and Cash Management Division.
Purpose of the instrument
The instrument directs that departmental outputs appropriation of $2,313,883, provided to the Department of Immigration and Multicultural and Indigenous Affairs in Appropriation Act (No. 1) 2004-2005, be transferred to: the Department of Employment and Workplace Relations ($104,162); the Australian Public Service Commission ($599,000); the Department of Communications, Information Technology and the Arts ($114,332); the Department of Prime Minister and Cabinet ($695,000); and the Department of Health and Ageing ($801,389).
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 from the Department of Immigration and Multicultural and Indigenous Affairs namely: the Business Development programme and Community Development and Employment Programme to the Department of Employment and Workplace Relations; the Broadcasting programme, the Art, Culture and Language programme and the Sport and Recreation programme to the Department of Communications, Information Technology and the Arts; and the Effective Family Tracing and Reunion Services programme to the Department of Health and Ageing.
In his letter of 28 March 2005 to the Minister for Immigration and Multicultural and Indigenous Affairs, the Prime Minister agreed to the following additional transfer of Indigenous affairs functions from the Department of Immigration and Multicultural and Indigenous Affairs. Responsibility for the function of Indigenous Affairs Secretaries’ Group, the provision of secretariat support for the Secretaries’ Group, and support for the Chair of the Secretaries’ Group, together with responsibility for playing a centralised coordination role on Indigenous matters was transferred to the Department of Prime Minister and Cabinet. Responsibility for developing and promoting Indigenous recruitment and retention strategies throughout the Australian Public Service was transferred to the Australian Public Service Commission.
Appropriation adjustments, pursuant to section 32 of the FMA Act, are 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 Employment and Workplace Relations; the Department of Communications, Information Technology and the Arts; the Department of Health and Ageing; the Department of Prime Minister and Cabinet; and the Australian Public Service Commission.
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 be transferred to: the Department of Employment and Workplace Relations; the Australian Public Service Commission; the Department of Communications, Information Technology and the Arts; the Department of Prime Minister and Cabinet; and the Department of Health and Ageing in column 3.