Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 12 of 2002-2003)

Overview

The Financial Management and Accountability Act 1997 was enacted to establish a framework for the financial management of Commonwealth entities, ensuring that public money is used efficiently, economically, effectively and ethically. The Act aims to improve financial management and accountability within the public sector, providing a legislative basis for sound financial practices across Commonwealth agencies. This legislative instrument, F2007B00822, is a direction issued under section 32 of the Act, which allows for the transfer of moneys between agencies as specified in the attached schedule. The enacting body, the Commonwealth Parliament, sought to address the need for flexibility in financial management by enabling such transfers to ensure resources are allocated efficiently to meet the objectives of the agencies involved. The policy objective of this particular direction is to facilitate the reallocation of funds from the Attorney General’s Department to the Federal Court of Australia and the Administrative Appeals Tribunal, ensuring these entities can operate effectively within their allocated budgets.

Scope and Application

The Financial Management and Accountability Act 1997 applies to the entities involved in the appropriation and re-appropriation of funds as outlined in the legislative instrument. Specifically, this directive applies to the Attorney General's Department and its responsibility over the Federal Court of Australia and the Administrative Appeals Tribunal, as well as the new agencies that will receive the transferred funds. The legislation is enacted at the Commonwealth level and thus has a national reach, impacting all federal government departments and agencies involved in the transfer of appropriations as directed. The directive itself is limited to the appropriation items listed for the specified financial year 2002-2003 and does not extend beyond the scope of the provided schedule. There are no stated exclusions or exemptions in this particular legislative instrument; however, the overarching Act may contain provisions that address other circumstances or scenarios not covered here. The instrument does not mention any subordinate legislation extending or restricting its application.

Key Provisions

The main operative sections of this legislation direct the transfer of specific moneys from one government agency to another. Under section 32 of the Financial Management and Accountability Act 1997, the Manager of the Financial Reporting and Cash Management Division of the Department of Finance and Administration is authorised to issue a direction for such transfers. Section 32 mandates that the direction must detail the appropriation items, the old and new agencies involved, and the amount of money to be transferred. This direction is executed by listing these items in a schedule attached to the document, with appropriation items listed in column 1, old agencies in column 2, new agencies in column 3, and the monetary amounts in column 4. For instance, appropriation item "Departmental Outputs – Outcome 1" from the Attorney General’s Department is to be transferred to the Federal Court of Australia in the amount of $43,000, and to the Administrative Appeals Tribunal in the amount of $102,000. The obligations imposed by this Act on the parties involved include ensuring that the specified moneys are accurately transferred from the old agencies to the new agencies as directed. The Manager of the Financial Reporting and Cash Management Division, in this case James Kerwin, must verify the details in the schedule and ensure that the transfers occur as per the directive. The old agencies must account for and transfer the specified amounts, while the new agencies are responsible for receiving and properly accounting for these funds. All parties must adhere to the financial management and accountability requirements set out in the Financial Management and Accountability Act 1997. Failure to comply with the direction or the obligations under the Act may lead to various consequences. While the legislation itself does not explicitly detail offences, penalties, or specific civil or criminal consequences for breach, breaches of the Financial Management and Accountability Act 1997 can potentially result in significant repercussions. These could include financial penalties, investigations by the Australian National Audit Office, and other administrative or legal actions. The maximum penalties for breaches of the Act can vary depending on the specific nature of the breach but may include fines and other sanctions as determined by the relevant authorities.