Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 10 of 2003-2004)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to establish a framework for the effective and accountable management of public moneys. This Act was introduced to address the need for robust financial governance and transparency within Commonwealth entities, ensuring that public funds are utilised efficiently and effectively. The policy objective of the Act is to foster fiscal responsibility and enhance the accountability of public sector entities in their financial operations. The legislative instrument F2007B00866, issued under section 32 of the Act, provides an example of its application in practice. On 4 February 2004, Jim Kerwin, as the Division Manager of Financial Reporting and Cash Management Division, Department of Finance and Administration, issued a direction to transfer specific appropriation items from one agency to another, illustrating the Act's role in facilitating the reallocation of financial resources to ensure compliance with legislative mandates and policy directives.

Scope and Application

The Direction under Section 32 of the Financial Management and Accountability Act 1997 applies to the transfer of specified appropriation moneys from one agency to another, as outlined in the attached schedule. The directive issued by Jim Kerwin, Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, mandates the reallocation of funds for designated appropriation items between various government departments and agencies. This includes the transfer of $24,000,000 from the Department of Parliamentary Services to the Department of the Parliamentary Reporting Staff. The geographic and jurisdictional reach of this legislation is confined to the Commonwealth of Australia, thereby affecting entities and persons within the federal government’s purview. No exclusions, exemptions, or thresholds are explicitly stated in the direction itself; however, the underlying act and related appropriations acts govern the broader financial management framework within which this directive operates. The application and interpretation of this direction may be further refined through subordinate instruments and regulations issued under the authority of the Financial Management and Accountability Act 1997.

Key Provisions

The legislative instrument F2007B00866 is a direction issued under section 32 of the Financial Management and Accountability Act 1997. This direction mandates the transfer of specific funds from one agency to another. Section 32 of the Act provides the authority for such a directive to be issued by a designated individual within the Department of Finance and Administration. In this case, Jim Kerwin, the Division Manager of Financial Reporting and Cash Management Division, has issued the direction. The document lists the appropriation items, the old agency from which the funds are to be transferred, the new agency to which the funds are to be transferred, and the amount involved in each transfer (sections 1 and 2). This Act imposes several obligations on the parties involved. Firstly, the old agency is required to ensure that the specified funds are transferred to the new agency by the date specified in the direction, which in this case is not explicitly mentioned but is implicitly understood to be immediately upon issuance (section 1). The new agency must be prepared to receive and account for these funds as per the directive (section 2). Furthermore, the direction itself must comply with the provisions of section 32 of the Financial Management and Accountability Act 1997, which entails that the direction must be made in writing and specify the appropriation items, the agencies involved, and the amounts to be transferred (section 3). Failure to comply with the direction issued under section 32 of the Financial Management and Accountability Act 1997 may result in civil or criminal penalties, depending on the severity and intent behind the non-compliance. While the specific penalties are not detailed in the legislative instrument itself, the Act generally provides for various sanctions, including fines and imprisonment for serious breaches. The Financial Management and Accountability Act 1997 includes provisions for enforcement and penalties for non-compliance, which could involve both civil and criminal consequences, with the maximum penalties depending on the specific nature of the offence (section 4). The enforcement of these penalties would be subject to the judicial process and the discretion of the courts.