Overview

The Financial Management and Accountability Act 1997 was enacted to provide for the accountability of Commonwealth entities in relation to financial management and to provide for the exercise of the financial management powers of the Commonwealth. The Act was introduced to address the need for comprehensive and transparent financial management practices within the Commonwealth to ensure accountability and efficient use of public funds. This legislative instrument, issued under section 32 of the Act, was enacted by the Parliament of Australia to facilitate the transfer of specific appropriations from one agency to another, ensuring that financial resources are allocated appropriately in line with the policy objectives and operational requirements of the Commonwealth. The policy objective, as stated in the Act, is to ensure that financial management practices within the Commonwealth are robust, transparent, and accountable to the Australian public. This legislative instrument, issued by John Nicholson, SES Band 1, Budget Coordination, Department of Finance and Administration, directs the transfer of certain funds from the Department of the Treasury to the Australian Office of Financial Management. This transfer is necessary to align financial resources with the operational needs and policy outcomes of the Commonwealth, ensuring that the financial management practices are in line with the overarching goals of the Financial Management and Accountability Act 1997. The specific appropriations being transferred include funds for departmental outputs, administered expenses, and special appropriations, all of which are critical for achieving the policy objective of a stronger, sustainable, and internationally competitive Australian industry.

Scope and Application

The Direction under Section 32 of the Financial Management and Accountability Act 1997 applies specifically to the transfer of appropriated funds between designated government agencies, as listed in the attached schedule. This direction is issued by John Nicholson, who holds the position of SES Band 1, Budget Coordination within the Department of Finance and Administration. The directive mandates the transfer of specified appropriations from the 'old agency' to the 'new agency', as outlined in columns 2 and 3 respectively, with the exact amounts to be transferred detailed in column 4. The legislation targets government departments and agencies involved in financial management and accountability, thereby ensuring compliance with the Act’s provisions on the proper allocation and management of funds. Geographically, this direction operates within the Commonwealth jurisdiction, affecting financial transactions across designated Australian government bodies. The scope of the direction encompasses the reallocation of specific appropriations for departmental outputs, administered expenses, and special appropriations as identified in the schedule. The direction does not explicitly state exclusions or exemptions, implying that all listed transfers are subject to the mandate. However, the application of the direction may be further extended or restricted through subordinate instruments, although the primary focus remains on ensuring accurate financial transfers as per the legislative requirements.

Key Provisions

The legislative instrument issued under section 32 of the Financial Management and Accountability Act 1997 outlines the transfer of specific appropriations from one government agency to another. According to the schedule, the Department of the Treasury is required to transfer funds for Departmental Outputs – Bill No 1, Administered Expenses Outcome 1 - Bill No 1, and Administered Expenses Outcome 1- Special Appropriation to the Australian Office of Financial Management. The exact amounts to be transferred are $4,628,000, $8,078,000, and $8,462,836,000 respectively (section 32). These transfers reflect the reallocation of financial resources to better align with the responsibilities and functions of the Australian Office of Financial Management. The Act imposes clear obligations on the parties involved, particularly the Department of the Treasury and the Australian Office of Financial Management. The Department of the Treasury must ensure that the specified appropriations are accurately calculated and transferred to the Australian Office of Financial Management. Conversely, the Australian Office of Financial Management must be prepared to receive these funds and utilise them in accordance with the relevant appropriations and financial management policies (section 32). Both agencies must maintain proper records and documentation of these transfers to ensure transparency and accountability. Failure to comply with the requirements set forth in this legislative instrument may result in legal consequences. Although the specific penalties are not detailed in the instrument itself, breaches of the Financial Management and Accountability Act 1997 can lead to civil or criminal penalties, depending on the nature and severity of the breach. In general, civil penalties may include fines, while criminal penalties can result in imprisonment. The exact penalties are determined by the courts and can vary based on the circumstances of each case. It is important for both agencies to adhere to the provisions of the Act to avoid any legal repercussions (section 32).