Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 10 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for the management and accountability of public money in the Australian government. This Act aims to address the need for clear and effective financial management practices within government agencies. The enacting body was the Commonwealth Parliament, and the policy objective was to ensure that public funds are used efficiently, effectively, and in accordance with the law. The attached legislative instrument under section 32 of this Act directs a specific transfer of funds from one agency to another, demonstrating the Act's application in reallocating financial resources within the government to align with its objectives and priorities.

Scope and Application

The Financial Management and Accountability Act 1997 provides a framework for financial management and accountability within the Australian Commonwealth government. This legislative instrument, issued under section 32 of the Act, directs the transfer of specific funds from one agency to another. In this instance, James Kerwin, the Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, has authorised the transfer of funds from the 'old agency', the Department of Communications, Information Technology and the Arts, to the 'new agency', the Department of Finance and Administration. The transfer pertains to specific appropriation items listed in the attached schedule, detailing the appropriation act, the old and new agencies involved, and the monetary amounts to be transferred. The directive applies to the Commonwealth level, impacting the financial management practices and inter-agency fund allocations within the Australian government. The exclusions and exemptions from this Act are not detailed within the legislative instrument itself, although it is understood that the Act may extend or restrict its application through subordinate instruments.

Key Provisions

The primary operative sections of this legislative instrument are those that provide the authority for the transfer of moneys between agencies as outlined in the schedule. Specifically, section 32 of the Financial Management and Accountability Act 1997 (FMA Act) empowers the Commonwealth Financial Reporting Unit, Department of Finance and Administration, to direct such transfers. In this case, James Kerwin, as the Branch Manager, is exercising that authority by directing the transfer of funds from the 'old agency' to the 'new agency' for specific appropriation items. This directive follows the format and requirements set out in the FMA Act, ensuring that the transfer of these funds is legally compliant and appropriately authorised. The obligations and requirements imposed by this Act on the parties or entities it governs are primarily centred on the precise execution of the financial transfers as directed. The 'old agency', in this instance the Department of Finance and Administration, must ensure that the funds specified in the schedule are correctly identified and prepared for transfer. The 'new agency', which in this case is the Department of Communications, Information Technology and the Arts, must be ready to receive and account for these funds accurately. Both agencies must maintain detailed records of these transactions to ensure transparency and accountability, as mandated by the FMA Act. There are no specific offences, penalties, or civil/criminal consequences detailed within this particular legislative instrument for breach of the directive. However, any failure to comply with the directives or any mismanagement of the transferred funds could potentially lead to broader consequences under the FMA Act. The Act generally provides for a range of administrative and disciplinary actions against public officers found to have acted in breach of its provisions, including fines and other penalties as prescribed by law. In the case of serious breaches, it could also lead to criminal charges, with penalties that may include imprisonment, depending on the severity of the offence. These potential consequences underscore the importance of adhering to the directive and the obligations it imposes.