Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 11 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Australian Parliament to ensure the proper management and accountability of financial resources within the Commonwealth. This Act was introduced to address the need for effective financial management practices across government agencies, ensuring transparency, efficiency, and compliance with budgetary processes. The policy objective of the Act is to provide a framework for the management of financial resources, including the proper allocation, control, and reporting of funds. This legislative instrument, F2007B00905, issued under section 32 of the Act, represents an application of these objectives by authorising the transfer of specific appropriations from one agency to another, in this case, from the Departmental Outputs Outcome 2 of the Department of Finance and Administration to the Department of Employment and Workplace Relations. The direction is issued by James Kerwin, the Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, on 20 December 2001, facilitating the reallocation of $1,562,000 as specified in the attached schedule.

Scope and Application

The Direction issued under section 32 of the Financial Management and Accountability Act 1997 applies to the transfer of specified funds between government agencies. Specifically, it mandates the transfer of moneys from the 'old agency' to the 'new agency' as listed in the attached schedule. The old agency in this case is the Departmental Outputs for Outcome 2 within the Department of Finance and Administration, and the new agency is the Department of Employment and Workplace Relations. The direction involves an appropriation amount of $1,562,000, as specified in the Appropriation Act (No. 1) 2001-2002. This legislative instrument operates within the Commonwealth jurisdiction and its application is limited to the financial arrangements between these particular government entities as outlined. There are no exclusions, exemptions, or thresholds specified within the direction itself, although the overarching Act may contain provisions that could apply more broadly. Any further application or interpretation of this direction may be extended or restricted through subordinate instruments issued under the authority of the Financial Management and Accountability Act 1997.

Key Provisions

The legislative instrument, F2007B00905, under section 32 of the Financial Management and Accountability Act 1997, provides a directive for the transfer of specific funds from one government agency to another. Specifically, Section 32(1) mandates the transfer of appropriation moneys as listed in column 4 for items specified in column 1. The directive, issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit, Department of Finance and Administration, outlines the transfer of funds from the 'old agency' in column 2 to the 'new agency' in column 3. For instance, appropriation item from the Appropriation Act (No. 1) 2001-2002, amounting to $1,562,000, is to be transferred from the Departmental Outputs Outcome 2 of the Department of Finance and Administration to the Department of Employment and Workplace Relations. The Act imposes clear obligations on the parties involved in the transfer. The 'old agency' must ensure that the funds are available and properly accounted for before the transfer. Once the transfer is effected, the 'new agency' is responsible for the proper management and use of these funds in accordance with their appropriation. Both agencies must maintain accurate records of the transaction to ensure accountability and transparency, as required by the Financial Management and Accountability Act 1997. Failure to comply with the provisions of the Act could result in significant consequences. The Act does not explicitly state penalties for non-compliance in this directive but breaches of the Financial Management and Accountability Act 1997 could lead to severe penalties. These may include fines and other sanctions under the broader legislative framework. For instance, breaches of the Act could result in civil penalties for officers involved, potentially including fines up to $11,000 under section 24 of the Act, and criminal penalties for serious breaches, which could lead to imprisonment. Such consequences underscore the importance of adhering to the directive and the legal obligations it entails.