Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 11 of 2003-2004)

Overview

The Financial Management and Accountability Act 1997 was enacted to provide for the effective management of Commonwealth financial resources and accountability for the use of those resources. The Act was introduced to address the need for robust financial oversight and the transparent management of public funds, ensuring that the government operates within its means and maintains public trust. The legislation is overseen by the Parliament of Australia, with the policy objective of enhancing the financial accountability and performance of government agencies. This legislative instrument, issued under section 32 of the Act, directs the transfer of specific non-lapsing appropriations from the Australian Greenhouse Office to the Office of the Renewable Energy Regulator, as listed in the attached schedule. The direction is issued by Jim Kerwin, Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, dated 25 March 2004, and relates to appropriation item number 11 of the 2003-2004 financial year.

Scope and Application

This legislative instrument, F2007B00868, constitutes a direction issued under section 32 of the Financial Management and Accountability Act 1997 by Jim Kerwin, the Division Manager of Financial Reporting and Cash Management Division within the Department of Finance and Administration. The directive pertains to the transfer of specified moneys from the 'old agency' to the 'new agency', as detailed in the attached schedule. This includes a non-lapsing appropriation from prior years originating from the Australian Greenhouse Office and being reallocated to the Office of the Renewable Energy Regulator, amounting to $694,175. The geographic reach of this Act is inherently national, given its issuance under Commonwealth legislation, thereby extending its applicability across federal entities and their financial transactions. The legislation does not explicitly state any exclusions or exemptions but operates within the confines of the Financial Management and Accountability Act 1997, which may include further stipulations in subordinate instruments.

Key Provisions

The primary operative sections of this legislative instrument, as set out in section 32 of the Financial Management and Accountability Act 1997, are concerned with the transfer of moneys from one agency to another. Specifically, this direction instructs the transfer of a non-lapsing appropriation from the Australian Greenhouse Office to the Office of the Renewable Energy Regulator, amounting to $694,175 (section 32). This directive is effective from the date noted in the document, 25 March 2004, and is referenced as No. 11 of 2003-2004. The direction is signed by Jim Kerwin, the Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, thereby formalising the transfer. The Act imposes several obligations and requirements on the entities involved. The Australian Greenhouse Office, as the originating agency, must ensure that the specified funds are accurately calculated and available for transfer. The Office of the Renewable Energy Regulator, as the receiving agency, must be prepared to accept and account for the transferred funds in accordance with financial management practices. Both agencies must maintain records that accurately reflect the transfer of funds as per the direction, ensuring compliance with the Financial Management and Accountability Act 1997. Furthermore, the Department of Finance and Administration, through its Division Manager, must verify that the transfer is carried out correctly and that all relevant documentation is properly executed and filed. In the event of a breach of the obligations and requirements set forth by the Act, there may be serious consequences. Offences under this Act can result in both civil and criminal penalties. While the specific penalties are not detailed in this legislative instrument, the Financial Management and Accountability Act 1997 generally provides for fines and imprisonment for breaches of financial management provisions. The maximum penalties can be substantial, reflecting the seriousness with which the law regards financial mismanagement and accountability failures. Therefore, both agencies must diligently adhere to the directive to avoid any legal repercussions that may arise from non-compliance.