Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 10 of 2000-2001)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to ensure that the Commonwealth's financial resources are managed prudently, economically, efficiently and effectively, and in accordance with the law. This Act was introduced to address the need for a comprehensive framework governing the financial management practices within Australian Government agencies, particularly in the allocation, use, and accountability of public funds. The FMA Act is a legislative instrument established by the Commonwealth Parliament and is aimed at ensuring that public moneys are used responsibly and in compliance with legislative requirements. This legislative instrument, issued by Phillip Prior, pursuant to section 32 of the FMA Act, directs the transfer of specified funds from one agency to another. In this particular case, appropriation items from the Department of the Prime Minister and Cabinet are transferred to the Department of Reconciliation and Aboriginal and Torres Strait Islander Affairs. This action is in line with the overarching policy objective of the FMA Act, which is to maintain financial integrity and accountability across government agencies, ensuring that resources are directed towards intended outcomes and purposes as authorised by Parliament.

Scope and Application

The direction issued under section 32 of the Financial Management and Accountability Act 1997 applies specifically to the transfer of certain appropriation funds between government agencies. This directive is issued by Phillip Prior, who holds a position within the Commonwealth Financial Reporting Unit, Department of Finance and Administration. The act concerns the reallocation of specified funds from the Department of the Prime Minister and Cabinet to the Department of Reconciliation and Aboriginal and Torres Strait Islander Affairs. The appropriations listed pertain to the years 2000-2001 and cover funds allocated under the Appropriation Acts (No. 1 and No. 3). The financial transfers pertain to departmental outputs and administered expenses associated with Outcome 1, reflecting the Commonwealth's financial management practices. This legislative instrument is applicable within the jurisdictional boundaries of the Commonwealth of Australia and is intended to ensure compliance with the Financial Management and Accountability Act 1997, which governs the financial operations of Commonwealth entities.

Key Provisions

The legislative instrument in question, dated 24 April 2001 and numbered No. 10 of 2001, is a direction issued under section 32 of the Financial Management and Accountability Act 1997 (FMA Act). This direction, signed by Phillip Prior, a member of the Commonwealth Financial Reporting Unit, mandates the transfer of specified appropriations from one government department to another. In accordance with the FMA Act, the directive requires that the funds allocated under the Appropriation Acts (No. 1 and No. 3) for the fiscal years 2000-2001, originally assigned to the Department of the Prime Minister and Cabinet, be re-allocated to the Department of Reconciliation and Aboriginal and Torres Strait Islander Affairs. The detailed breakdown of the appropriations to be transferred is provided in the accompanying schedule, which lists the appropriation items, the originating department, the receiving department, and the respective amounts in dollars. The obligations imposed by this direction are clear and specific, placing a legal responsibility on both the Department of the Prime Minister and Cabinet and the Department of Reconciliation and Aboriginal and Torres Strait Islander Affairs to facilitate the transfer of the specified funds. The originating department is required to disburse the funds to the receiving department in a timely and accurate manner, ensuring that the financial management processes are compliant with the FMA Act. The receiving department, on the other hand, must ensure that the funds are received and properly accounted for in their financial records, reflecting the changes in appropriation as directed. Failure to comply with the requirements set out in the FMA Act and this legislative instrument may result in various consequences, both civil and criminal. Under the FMA Act, breaches of its provisions can lead to penalties, which may include fines or imprisonment, depending on the severity of the breach. For instance, section 32(3) of the FMA Act stipulates that an officer who contravenes a direction issued under section 32 is liable to a penalty of up to $21,600 for a corporation or $2,160 for an individual. Additionally, section 32(4) allows for the recovery of any loss or damage suffered by a person due to the non-compliance. Such provisions underscore the importance of adhering to the direction and the seriousness with which the law treats any failure to do so.