Direction under section 32, Financial Management and Accountability Act 1997 – Adjustments of Appropriations on Change of Agency Functions (No. 10 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, is designed to ensure sound financial management and accountability across the Commonwealth. This Act provides a framework for managing the financial resources of the Commonwealth and its agencies effectively. The legislative instrument F2006B11661, dated 1 November 2004, under section 32 of the Act, addresses the need to reallocate specific appropriations between agencies to ensure that financial resources are directed towards their intended purposes. In this instance, Anne Hazell, the Division Manager for Financial Reporting and Cash Management within the Department of Finance and Administration, authorised the transfer of $500,000 from the Departmental Outputs of the Department of Family and Community Services to the Department of Human Services. This reallocation aims to align financial resources more accurately with the operational needs and responsibilities of the respective agencies.

Scope and Application

The Financial Management and Accountability Act 1997 provides the framework for the effective management of public funds and the accountability of financial transactions within the Australian government. This legislative instrument, issued under section 32 of the Act, applies to the transfer of specific appropriation items from one government agency to another. In this instance, the direction pertains to the transfer of funds amounting to $500,000 from the Departmental Outputs of the Department of Family and Community Services to the Departmental Outputs of the Department of Human Services. The transfer is mandated by Anne Hazell, Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, and is effective from 1 November 2004. The scope of the Act encompasses the specified appropriation items listed in the attached schedule, ensuring that financial resources are reallocated in accordance with government priorities and operational needs. The Act's application is limited to the entities and appropriation items listed in the schedule and does not extend beyond these parameters unless otherwise specified in subordinate instruments.

Key Provisions

The operative section of this legislative instrument, section 32 of the Financial Management and Accountability Act 1997, empowers the Division Manager of Financial Reporting and Cash Management Division within the Department of Finance and Administration to direct the transfer of specified funds from one agency to another. In this case, the directive mandates the transfer of $500,000 from the Department of Family and Community Services to the Department of Human Services under the Appropriation Act (No. 1) 2004-2005. The transfer is intended to align with the reallocation of departmental outputs as identified in the attached schedule. The Act imposes certain obligations on the parties involved in this financial transfer. The Division Manager, in this instance Anne Hazell, must ensure that the transfer is executed in accordance with the directions provided, and that the funds are appropriately allocated to the new agency. The old agency, the Department of Family and Community Services, must comply with the directive by facilitating the transfer of the specified funds. The new agency, the Department of Human Services, must be ready to receive and account for the transferred funds as per the requirements of the Financial Management and Accountability Act 1997. Failure to comply with the directives issued under this legislative instrument may result in various consequences. While specific offences and penalties are not detailed within this directive, breaches of the Financial Management and Accountability Act 1997 can potentially lead to civil or criminal penalties. Such penalties may include fines or imprisonment, depending on the severity of the breach and the specific provisions of the Act that have been contravened. The exact nature and extent of penalties are to be determined according to the broader legal framework provided by the Act.