Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 13 of 2003-2004)

Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, was introduced to ensure robust financial management and accountability within the federal government. This Act provides the legislative framework for the administration of public funds, aiming to promote transparency and efficient use of resources. The legislative instrument F2007B00871 is a direction issued under section 32 of this Act, which allows for the transfer of specified moneys between agencies. This direction, issued by Jim Kerwin, Division Manager of the Financial Reporting and Cash Management Division at the Department of Finance and Administration, facilitates the reallocation of funds to ensure they are utilised in accordance with the appropriations approved by Parliament. The policy objective is to maintain fiscal discipline and ensure that government resources are directed towards the intended purposes as approved by the legislative process.

Scope and Application

The direction under Section 32 of the Financial Management and Accountability Act 1997 applies to the transfer of specific appropriations between government agencies as listed in the accompanying schedule. This legislative instrument concerns the reallocation of funds from the 'old agency', identified in column 2, to the 'new agency' specified in column 3, for the appropriation items detailed in column 1, with the monetary amounts for these transfers set out in column 4. The act applies to entities within the Commonwealth of Australia and governs the financial transactions between various government departments, ensuring that the allocation of funds is managed in accordance with legislative requirements. There are no stated exclusions, exemptions, or thresholds in this particular legislative instrument, and the scope is limited to the specific appropriation items and agencies as outlined. This direction extends the application of the Financial Management and Accountability Act 1997 by providing detailed instructions on the transfer of specific funds between agencies.

Key Provisions

The primary operative section of this legislative instrument is section 32 of the Financial Management and Accountability Act 1997, which allows the Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration to direct the transfer of moneys between different agencies. In this instance, Jim Kerwin, the Division Manager, directs the transfer of specified appropriations from the 'old agency' to the 'new agency' as listed in the attached schedule (sections 32(1) and (2)). This schedule details the appropriation items, the originating and receiving agencies, and the monetary amounts to be transferred. For example, appropriation item 'Appropriation Act (No. 1) 2003-2004' is to be moved from the Attorney-General’s Department to the Federal Court of Australia for the amount of $707,152. The obligations imposed by this legislative instrument require the relevant agencies to comply with the directives issued by the Division Manager. The 'old agency' must ensure that the specified moneys are transferred to the 'new agency' as per the schedule, while the 'new agency' must be prepared to receive and account for the transferred funds. This involves accurate record-keeping and reporting to ensure the integrity and transparency of financial transactions across government departments (section 32(3)). Both agencies are also obligated to follow the procedures outlined in the Financial Management and Accountability Act 1997 to ensure compliance with financial management standards. Breaching the obligations set out in this legislative instrument can result in serious consequences. Non-compliance with the directives could lead to financial mismanagement, which under the Financial Management and Accountability Act 1997, may attract penalties. While the specific penalties are not detailed in this instrument, they could include fines, administrative sanctions, or more severe repercussions such as criminal charges in cases of significant financial mismanagement or fraud. The maximum penalties would be determined based on the severity of the breach and would comply with the relevant sections of the Act (section 32(4)). It is important for all parties involved to adhere strictly to the directives to avoid any potential legal or financial repercussions.