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 July 2005 and numbered 4 of 2005-2006.
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, and the Division Manager, Financial Reporting and Cash Management Division.
Purpose of the instrument
The instrument directs that non lapsing appropriations from previous years of $50,270,000, provided to the Department of Defence, be transferred to the Defence Materiel Organisation.
Background
On 1 July 2005, the Defence Materiel Organisation became a prescribed agency. An appropriation adjustment, pursuant to section 32 of the FMA Act, is required to ensure that unspent appropriation provided to the Department of Defence for the performance of those functions to be undertaken by the Defence Material Organisation, be transferred to the Defence Material Organisation.
Notes on the instrument
The instrument provides that the moneys listed in column 4 of the schedule for the Department of Defence item be transferred to the Defence Materiel Organisation item listed in column 1.