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 9 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 item, being an amount of $5,277,986.00 under Appropriation Act (No. 1) 2006-2007 provided to the Department of Employment and Workplace Relations (DEWR) be transferred to the Workplace Authority (WPA).

Background

On 28 May 2007, a decision was made to transfer the Office of the Employment Advocate function from the Department of Employment and Workplace Relations to the Workplace Authority. 

Transfers were previously made in an instrument entitled “Direction under Section 32, Financial Management and Accountability Act 1997”, dated 2 July 2007 and numbered 2 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 DEWR be transferred to WPA.   

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