Direction under section 32, Financial Management and Accountability Act 1997 – Adjustments of Appropriations on Change of Agency Functions (No. 11 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the management of public moneys and the accountability of public sector entities in Australia. This Act was introduced to address the need for improved financial management and transparency within the public sector. The FMA Act is administered by the Parliament of Australia, aiming to ensure that public funds are used efficiently, effectively, and for the purposes intended by the Parliament. The legislative instrument, F2006B11663, under section 32 of the FMA Act, directs the transfer of specific appropriations from one agency to another, ensuring that funds are allocated in accordance with current administrative structures and policy objectives. The directive, issued by Anne Hazell, Division Manager of the Financial Reporting and Cash Management Division, Department of Finance and Administration, reflects the ongoing need to adjust financial allocations in response to organisational changes and shifts in policy priorities.

Scope and Application

The Legislative Instrument F2006B11663, under section 32 of the Financial Management and Accountability Act 1997, pertains to the transfer of specified appropriations from one government agency to another. This directive applies to the transfer of funds allocated under the Appropriation Act (No. 1) 2004-2005, specifically detailing the movement of administered expenses across various outcomes and agencies. It involves the reallocation of funds from the Department of Immigration and Multicultural and Indigenous Affairs, as well as the Attorney-General’s Department and the Department of Family and Community Services, to different agencies as specified in the attached schedule. This instrument is a Commonwealth instrument, applying within the Australian jurisdiction and extending its reach across specified government departments and their financial allocations. The Legislative Instrument does not explicitly outline exclusions, exemptions, or thresholds for its application, but it operates within the framework of the Financial Management and Accountability Act 1997. The scope of its application is limited to the financial transactions as detailed in the attached schedule, facilitating the re-allocation of funds as per the directive. This instrument, while specific to the appropriations listed, may be extended or restricted through subordinate instruments or further directives under the overarching Act.

Key Provisions

The legislative instrument under consideration, F2006B11663, is a direction issued pursuant to section 32 of the Financial Management and Accountability Act 1997. This direction mandates the transfer of specific appropriations from one government agency to another. The directive is issued by Anne Hazell, Division Manager of Financial Reporting and Cash Management Division, Department of Finance and Administration. The key sections involved in this transfer are section 32 of the Act, which allows the issuing of directions to manage financial appropriations, and the attached schedule detailing the appropriations to be transferred (sections 1 and 2 of the instrument). The primary requirement is the transfer of moneys from the 'old agency' to the 'new agency' as listed in the schedule. For instance, appropriation from the Department of Immigration and Multicultural and Indigenous Affairs for administered expenses is to be transferred to the Attorney-General’s Department and the Department of Family and Community Services, with specific dollar amounts detailed in the schedule. The obligations imposed by this direction are primarily administrative and financial. The 'old agencies' are required to ensure the specified funds are accurately calculated and transferred to the 'new agencies' by the date set forth in the direction. This involves meticulous record-keeping and financial reporting to ensure compliance with the direction and the Act. Additionally, the 'new agencies' must be prepared to receive and appropriately account for these transferred funds within their financial systems. Both sets of agencies must adhere to the prescribed timelines and ensure that the transfer does not disrupt their financial operations or compliance with other statutory obligations. In terms of consequences for non-compliance, the Financial Management and Accountability Act 1997 may impose penalties on parties that fail to adhere to the direction. While specific penalties are not detailed in the legislative instrument itself, under the Act, breaches can result in both civil and criminal penalties. Civil penalties may include fines, while criminal penalties can lead to imprisonment, depending on the severity of the breach. The exact penalties would be determined by the courts based on the specific circumstances of the breach and any mitigating or aggravating factors present in the case. Ensuring strict adherence to the direction is therefore crucial to avoid any legal repercussions.