Direction under section 32, Financial Management and Accountability Act 1997 – Adjustments of Appropriations on Change of Agency Functions (No. 12 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 was enacted to address the need for strong financial management and accountability in government agencies. This Act aims to provide a framework for the effective and efficient management of public money, ensuring transparency and adherence to legislative requirements. The Act was passed by the Commonwealth Parliament and its policy objective is to promote prudent financial management practices across all government agencies, ensuring that public funds are used responsibly and effectively. The legislative instrument F2006B11664, issued under the authority of the Act, directs the transfer of specific appropriations from one government agency to another, in this instance from the National Oceans Office to the Department of the Environment and Heritage. This transfer is part of the ongoing efforts to align financial resources with the operational needs and responsibilities of various government departments, ensuring that funds are allocated in accordance with the approved budget and legislative mandates.

Scope and Application

This legislative instrument applies to the appropriation of funds between government agencies as specified within the document, specifically directing the transfer of funds from the National Oceans Office to the Department of the Environment and Heritage. The scope of this directive includes the financial transactions and appropriations listed in the schedule, which details the appropriation items, the old agency, the new agency, and the amount to be transferred. The application of this legislation is limited to the specified appropriation items and does not extend to other funds or agencies not mentioned within the document. The directive is issued under the authority of the Financial Management and Accountability Act 1997, with Anne Hazell, Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, acting under section 32 of the Act. This legislative instrument affects the Commonwealth level, governing the allocation of public funds between departments within the federal government. The instrument does not specify any exclusions, exemptions, or thresholds beyond those outlined in the schedule, and the application is strictly limited to the appropriation items listed. Subordinate instruments may further extend or refine the application of this directive, but the current document focuses on the specific transfer of funds as detailed.

Key Provisions

The primary operative section in this legislative instrument is section 32 of the Financial Management and Accountability Act 1997, which allows the Division Manager of Financial Reporting and Cash Management Division within the Department of Finance and Administration to issue a direction regarding the transfer of funds between agencies. Specifically, this direction mandates that specified appropriations, as detailed in the attached schedule, be moved from one agency to another (section 32). The document lists various appropriation items, the old agency, the new agency, and the monetary amounts that are to be transferred. Under this direction, certain obligations and requirements are placed on the involved agencies. The 'old agency' must ensure that the specified funds are accurately calculated and made available for transfer. The 'new agency' is required to receive these funds and account for them correctly within their own financial systems. This process ensures that there is a smooth transition of financial resources and that both agencies comply with the statutory requirements set out in the Financial Management and Accountability Act 1997. Failure to comply with the provisions of this direction could potentially lead to various consequences, though specific offences and penalties are not detailed within this particular legislative instrument. However, generally speaking, under the Financial Management and Accountability Act 1997, breaches of financial management directives can result in both civil and criminal penalties. Civil penalties may include fines and other monetary penalties, while criminal penalties could involve imprisonment, depending on the severity of the breach and the intent behind it. These penalties are intended to enforce compliance and maintain the integrity of financial management practices across government agencies.