Direction under section 32, Financial Management and Accountability Act 1997- Adjustments of Appropriations on Change of Agency Functions (No. 13 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for the financial management and accountability of the Commonwealth. The Act was introduced to address the need for improved financial management and reporting within government agencies, ensuring that public funds are used efficiently and effectively. The Parliament of Australia enacted this legislation to establish a robust system of accountability for the use of public money. The policy objective of the Act is to ensure that public money is managed prudently and that there is transparency and accountability in the financial operations of Commonwealth entities. The legislative instrument, F2007B00908, issued under section 32 of the Act, provides a specific direction for the transfer of funds between agencies, ensuring that financial resources are allocated in accordance with the provisions of the Act. This direction, issued by the Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, facilitates the reallocation of non-lapsing departmental outputs from prior years' appropriations, in this case, transferring $8,535.18 from the Department of Finance and Administration to the Department of Transport and Regional Services.

Scope and Application

The direction issued under Section 32 of the Financial Management and Accountability Act 1997 pertains to the transfer of specific funds from one government agency to another. Specifically, the directive is made by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, to facilitate the movement of non-lapsing departmental outputs from prior years' appropriations. The old agency involved in this transfer is the Department of Finance and Administration, while the new agency receiving the funds is the Department of Transport and Regional Services. The sum specified for transfer is $8,535.18, as detailed in the attached schedule. This direction applies to the financial transactions between these two federal government departments within the Commonwealth of Australia, and it adheres to the jurisdictional authority provided by the Financial Management and Accountability Act 1997. The scope of this legislative instrument is narrowly focused on the specified transfer of funds between the identified agencies, and no exclusions or exemptions are mentioned within the text. However, it should be noted that the application of this direction may be subject to further interpretation or elaboration through subordinate instruments or additional administrative guidelines. The geographic and jurisdictional reach of this direction is limited to the Commonwealth level, impacting only the federal government agencies mentioned.

Key Provisions

The main operative sections of this legislative instrument, under the Financial Management and Accountability Act 1997, involve the direction for the transfer of specific funds from one government agency to another (section 32). In this case, the Branch Manager of the Commonwealth Financial Reporting Unit, James Kerwin, is directing the transfer of non-lapsing departmental outputs from the Department of Finance and Administration to the Department of Transport and Regional Services. The exact amount to be transferred is $8,535.18, as detailed in the attached schedule. This transfer is a formal directive intended to ensure proper financial management and accountability across government agencies. The obligations and requirements imposed by this Act primarily concern the accuracy and accountability of financial transfers between government agencies. The directive must specify the appropriation item, the old agency, the new agency, and the exact amount to be transferred, as clearly outlined in the document. The Director is responsible for ensuring that these transfers adhere to the stipulated appropriations and that they are recorded accurately in the financial accounts of both the originating and receiving agencies. Furthermore, the directive must be dated and signed by an authorised person, which in this instance is James Kerwin, to validate the legitimacy of the transfer. Failure to comply with the directives outlined in this legislative instrument may result in significant consequences. While the specific Act does not detail penalties for non-compliance, breaches of the Financial Management and Accountability Act 1997 can lead to severe civil or criminal penalties. The Act aims to uphold high standards of financial integrity, and any misallocation or unauthorised transfer of funds can be considered a serious offence. Penalties for breaches may include fines, imprisonment, or both, depending on the severity of the breach and the intent behind it. The exact penalties would be determined in the context of the broader legal framework and any relevant case law.