Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 1 of 2002-2003)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Australian Parliament to ensure effective financial management and accountability across the Commonwealth. This Act provides a framework for the management of public funds, requiring transparency, efficiency, and responsibility in the allocation and expenditure of public moneys. The legislation was introduced to address the need for robust financial controls and reporting mechanisms to safeguard public resources and to maintain public confidence in the integrity of government financial practices. This legislative instrument, issued under section 32 of the Financial Management and Accountability Act 1997, directs the transfer of specific appropriation items from one agency to another. The directive, issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, aims to ensure that the financial resources are appropriately allocated in accordance with the legislative requirements. The policy objective, as stated, is to facilitate the efficient and transparent transfer of funds to support the mandated outcomes and objectives of the respective agencies.

Scope and Application

The Direction under section 32 of the Financial Management and Accountability Act 1997 applies to the appropriation of specific moneys listed in the attached schedule, detailing the transfer of funds from one Commonwealth agency to another. This directive pertains to the appropriation items of the Appropriation Act (No. 1) 2002-2003, specifically affecting the Department of Communications, Information Technology and the Arts. The Direction mandates the transfer of $9,995,000 from the old agency, the Departmental Outputs - Outcome 1, to the new agency, the National Office for the Information Economy. The jurisdictional reach of this Act is limited to Commonwealth entities, ensuring the proper management and accountability of financial resources within the federal government. There are no exclusions, exemptions, or thresholds explicitly stated in this Direction, which is limited to the specific appropriation items and agencies identified. This Direction extends the application of the Financial Management and Accountability Act 1997 by specifying the financial transfers mandated by the legislation.

Key Provisions

The legislative instrument issued under section 32 of the Financial Management and Accountability Act 1997 involves the transfer of specific funds from one agency to another, as detailed in the accompanying schedule. This direction mandates that certain appropriation items be moved from the 'old agency' to the 'new agency', as listed in columns 2 and 3 of the schedule respectively, with the corresponding dollar amounts specified in column 4. For instance, appropriation item 'Departmental Outputs - Outcome 1' from the Department of Communications, Information Technology and the Arts is to be transferred to the National Office for the Information Economy, with an amount of $9,995,000 (section 32). This provision ensures that financial resources are reallocated as per the government's strategic priorities, maintaining fiscal accountability and efficiency. The Act imposes several obligations on the entities involved in this financial transfer. Primarily, it requires the 'old agency' to release the specified funds and the 'new agency' to accept the funds as directed. This transfer must be recorded accurately in the financial records of both agencies to ensure compliance with the Act. Additionally, both agencies are obligated to maintain transparency and provide necessary documentation to substantiate the transfer, thereby ensuring that the financial management process adheres to the statutory requirements (section 32). Failure to comply with the directions outlined in this legislative instrument may result in significant consequences. While the specific penalties are not detailed in this text, breaches of the Financial Management and Accountability Act 1997 generally attract both civil and criminal penalties. Civil penalties may include fines and other monetary penalties, while criminal penalties could lead to imprisonment, depending on the severity of the breach. It is crucial for both the 'old agency' and the 'new agency' to adhere strictly to the directions to avoid any potential legal repercussions (section 32). The precise penalties are defined in other sections of the Act, which should be consulted for detailed information.