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 9 June 2005 and numbered 38 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.
Subsection 32(2)(b) of the FMA Act enables the Finance Minister to, amongst other things, issue one or more directions to transfer from the new Agency back to the old Agency the whole or part of an amount that was transferred to the new Agency by a direction under paragraph (a).
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 administered expenses appropriation totalling $750,000 be transferred back from the new Agency, the Department of Employment and Workplace Relations, to the old Agency, the Department of Family and Community Services, under subsection 32(2)(b). This appropriation was originally transferred through section 32 Direction No 18 from the Department of Family and Community Services to the Department of Employment and Workplace Relations.
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, transferring responsibility for income support and programmes for people of working age, and to help people with disabilities obtain employment, other than supported employment, from the Department of Family and Community Services to the Department of Employment and Workplace Relations.
This section 32 agreement is for the transfer from the Department of Employment and Workplace Relations to the Department of Family and Community Services of the Newly Arrived Youth Support Service (NYASS) of $750,000 to the Reconnect programme in Outcome 1- Families are Strong, Output 1.2 Youth and Student, as agreed between both parties on 3 May 2005.
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 Family and Community Services item listed in column 1.