Explanatory Statement

Financial Management and Accountability Act 1997, Section 32 - Adjustment 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 26 April 2007 and numbered 13 of 2006-2007.

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.

By way of an instrument dated 19 February 2003 made under section 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 16 March 2007 made under section 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 Acting Division Manager, Financial Reporting and Cash Management Division.

Purpose of the instrument

The instrument directs that departmental appropriation in the amount of $711,539 provided to the Department of Industry, Tourism and Resources (DITR) in Appropriation Act (No.1) 2006-2007 be transferred to the Productivity Commission (the Commission).

Background

On 18 July 2006, a decision was made to transfer the Business Cost Calculator function from DITR to the Office of Best Practice Regulation established within the Commission.

Notes on the instrument

The instrument provides that the amounts set out in column 4 of the table for the appropriation items in column 1 for DITR be transferred to the Commission.   

In accordance with the Legislative Instruments Act 2003, DITR and the Commission were consulted in preparation of this instrument.