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 29 February 2008 and numbered 8 of 2007-2008.

The legislative authority under which the instrument is made

Note: the Financial Management and Accountability Act 1997 (‘the FMA Act’) was amended by the Financial Framework Legislation Amendment Act (No. 1) 2007 (FFLA) Act. Amendments to section 32 of the FMA Act took effect on 25 September 2007. As this transfer of functions took place prior to 25 September 2007, under item 17 of the FFLA Act, this transfer is made under section 32 as it applied at that time.

Section 32 of 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 effective from 1 July 2007 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 Deregulation. By way of an instrument effective from 1 July 2007 made under section 53 of the FMA Act, the Chief Executive of the Department of Finance and Deregulation 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 part of the departmental items, being an amount of $522,000.00 under Appropriation Act (No. 1) 2007-2008, $1,007,663.54 under Appropriation Act (No. 1) 2006-2007, $2,107,407.93 under Appropriation Act (No. 1) 2005-2006 and part of the other departmental item, being an amount of $264,125.35 in equity injections under Appropriation Act (No. 2) 2005-2006 provided to the Attorney-General’s Department (AGD) be transferred to the Australian Commission for Law Enforcement Integrity (ACLEI).

Background

The Law Enforcement Integrity Commissioner Act 2006 established the office of the Integrity Commissioner, supported by a statutory agency, ACLEI.  The Integrity Commissioner's role is to detect, investigate and prevent corruption in the Australian Crime Commission, the Australian Federal Police and other prescribed Australian Government agencies with law enforcement functions. The Integrity Commissioner also has a role to maintain and improve the integrity of staff members of law enforcement agencies, and to process intelligence on corruption in Commonwealth law enforcement.  ACLEI has also been established as a prescribed agency under the FMA Act (Item 107AA, Schedule 1, Part 1, Financial Management and Accountability Regulations 1997).

ACLEI took internal responsibility for its financial management on 1 July 2007.

Transfers were previously made in an instrument entitled “Direction under Section 32, Financial Management and Accountability Act 1997”, dated 23 August 2007 and numbered 5 of 2007-2008.

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 AGD be transferred to ACLEI.   

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