Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 12 of 2003-2004)

Overview

The Financial Management and Accountability Act 1997 was enacted to ensure that financial management within the Australian government is conducted in a responsible, transparent, and accountable manner. This legislation was introduced to address issues surrounding the proper allocation, management, and accountability of public funds. The enactment of this Act was carried out by the Australian Parliament, with the underlying policy objective being to promote efficiency and integrity in the management of financial resources across government agencies. This legislative instrument, F2007B00869, is an example of how the Act is implemented in practice, ensuring that appropriations are correctly transferred between agencies. The direction provided by Jim Kerwin, Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, exemplifies the Act's role in facilitating the proper transfer of funds to ensure compliance with financial management standards.

Scope and Application

The Financial Management and Accountability Act 1997 applies to entities under the Commonwealth of Australia, including government departments, agencies, and statutory bodies. This legislation provides the framework for financial management, accountability, and transparency within the public sector. The legislative instrument in question, issued by Jim Kerwin, Division Manager of the Financial Reporting and Cash Management Division, Department of Finance and Administration, pertains specifically to the transfer of appropriations between agencies. The directive concerns the reallocation of funds from the Department of Industry, Tourism and Resources to the Australian Greenhouse Office as specified in the attached schedule. This reallocation includes both the appropriation for the financial year 2003-2004 and non-lapsing appropriations from prior years. The geographical scope of this Act is confined to the Commonwealth level, with no stated exclusions or exemptions in the provided excerpt, though it is noted that the application may be further defined through subordinate instruments.

Key Provisions

The main operative sections of this legislative instrument (No. 12 of 2003-2004) pertain to the transfer of funds from one agency to another, as directed by the Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration. Section 32 of the Financial Management and Accountability Act 1997 empowers the Division Manager to issue such a direction. Specifically, the direction mandates the transfer of moneys listed in column 4 of the attached schedule for the appropriation items listed in column 1, from the 'old agency' listed in column 2 to the 'new agency' listed in column 3 (Section 32). The funds in question are derived from the Appropriation Act (No. 1) 2003-2004 and include Departmental Outputs and non-lapsing appropriations from prior years. The obligations and requirements imposed by this Act on the parties involved include the necessity for the 'old agency' to transfer the specified funds to the 'new agency' as directed. The 'old agency' is required to ensure that the financial transactions are carried out in accordance with the provisions of the Financial Management and Accountability Act 1997, ensuring compliance with financial management standards and practices. Additionally, the 'new agency' must be prepared to receive the funds as directed, ensuring that the receipt and application of the funds align with their operational and financial management requirements. Breach of the obligations and requirements outlined in this legislative instrument can result in both civil and criminal consequences. Under the Financial Management and Accountability Act 1997, failure to comply with the direction could be viewed as a breach of statutory duty, which may result in penalties as prescribed by the Act. The maximum penalties for such breaches can include fines, imprisonment, or both, depending on the severity and intent behind the breach. It is crucial for both the 'old agency' and the 'new agency' to adhere to the direction to avoid any legal ramifications.