Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 10 of 2002-2003)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Commonwealth Parliament to establish a framework for the prudent and accountable management of public finances. The Act aims to ensure that public money is used efficiently, economically, effectively, and ethically. This legislation is essential for maintaining transparency and accountability in the use of public funds, thereby fostering public trust in government operations. The policy objective of the Act is to provide a robust system of financial management and accountability that safeguards public resources and supports the delivery of government services. This legislative instrument, F2007B00820, issued under section 32 of the Financial Management and Accountability Act 1997, directs the transfer of specified moneys from the Department of Immigration and Multicultural and Indigenous Affairs to the Department of Finance and Administration. Issued by James Kerwin, the Manager of the Financial Reporting and Cash Management Division within the Department of Finance and Administration, the direction ensures compliance with the Act's requirements for the appropriate allocation and management of public funds. The document outlines the appropriations to be transferred, highlighting the need for precise financial oversight and adherence to budgetary processes.

Scope and Application

The Direction under Section 32 of the Financial Management and Accountability Act 1997 applies to the financial transactions between specified government agencies within Australia. Specifically, it mandates the transfer of certain appropriations from the Department of Immigration and Multicultural and Indigenous Affairs to the Department of Finance and Administration. The Direction affects the allocation of funds outlined in the Appropriation Act (No. 2) 2002-2003, including an equity injection and non-lapsing appropriations from prior years, totalling $61,621,000. This directive is applicable within the Commonwealth jurisdiction, ensuring compliance with financial management standards and accountability measures as prescribed by the Act. The Direction does not specify exclusions or exemptions but operates under the authority granted by the Act, with potential extensions or restrictions possibly addressed in subordinate instruments.

Key Provisions

The direction under section 32 of the Financial Management and Accountability Act 1997 (section 32) authorises the transfer of specific funds from one agency to another. In this case, James Kerwin, the Manager of Financial Reporting and Cash Management Division, Department of Finance and Administration, has issued a direction to transfer certain appropriation funds. The moneys listed in column 4 of the attached schedule for the items in column 1 are to be moved from the 'old agency' in column 2 to the 'new agency' in column 3. For example, the appropriation for Equity Injections under the Appropriation Act (No. 2) 2002-2003 is to be transferred from the Department of Immigration and Multicultural and Indigenous Affairs to the Department of Finance and Administration in the amount of $53,321,000. Similarly, a non-lapsing appropriation from prior years is to be transferred from the Department of Immigration and Multicultural and Indigenous Affairs to the Department of Finance and Administration in the amount of $8,300,000. The obligations imposed by this direction include ensuring that the funds are accurately transferred as specified in the attached schedule. The 'old agency' must process the transfer of the specified funds to the 'new agency' in accordance with the direction. This includes ensuring that the correct amounts are transferred and that all necessary records and documentation are updated to reflect the changes. The 'new agency' must receive the transferred funds and update its records to reflect the new appropriation amounts. Failure to comply with the direction may have legal consequences. While the legislation does not specify particular offences or penalties for non-compliance, breaches of the Financial Management and Accountability Act 1997 may result in civil or criminal penalties under other sections of the Act. For instance, section 34 of the Act provides that a person who contravenes a direction issued under section 32 is liable to a penalty of up to $10,000. Additionally, there may be internal administrative consequences within the agencies involved if the direction is not followed, such as disciplinary action or other administrative penalties.