Explanatory Statement
Financial Management and Accountability Act 1997, Section 32 - Adjustments of appropriations on change of Agency functions
This explanatory statement relates to an instrument (the instrument) entitled “Direction under Section 32, Financial Management and Accountability Act 1997”, dated 30 June 2006 and numbered 26 of 2005-2006.
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.
By way of an instrument dated 19 February 2003 made under s.62 of 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 3 April 2006 made under s.53 of the FMA Act, 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. The direction is issued by the Division Manager, Financial Reporting and Cash Management Division.
Purpose of the instrument
The instrument directs that annual administered appropriation retention from prior years totalling $103,203.23, provided to the Department of the Senate, be transferred to the Department of Finance and Administration.
Background
On 1 July 2005, following a decision made between the President of the Senate and the Acting Prime Minister, administrative responsibilities for the Members of Parliament (Staff) ACT 1984 employees were transferred from the Department of the Senate to the Department of Finance and Administration. An appropriation adjustment, pursuant to section 32 of the FMA Act, is required to ensure that appropriation provided to the Department the Senate is transferred to the Department of Finance and Administration. .
Notes on the instrument
The instrument provides that the amount set out in column 4 of the table in the instrument for the appropriation item in column 1 for the Department of the Senate be transferred to the Department of Finance and Administration.