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 21 June 2005 and numbered 43 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, Financial Management Group.
Purpose of the instrument
The instrument directs that the departmental outputs appropriation of $616,000 provided to the Department of Health and Ageing 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 No. S 427 of 27 October 2004, making the Department of Human Services responsible for the monitoring and management of service delivery functions of the Health Insurance Commission.
This section 32 agreement is for the transfer of the remaining departmental outputs appropriation for the Health Insurance Commission Liaison Unit which was located within the Department of Health and Ageing and is now part of the Department of Human Services.
Appropriation adjustments, pursuant to section 32 of the FMA Act, are required to ensure that appropriation provided to the Department of Health and Ageing for performance of this function 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 Health and Ageing item be transferred to the Department of Human Services item listed in column 1.