Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 14 of 2002-2003)

Overview

The Financial Management and Accountability Act 1997 was enacted to establish robust frameworks for the management of public finances, ensuring transparency, accountability, and efficiency in the handling of public money. This legislation was introduced to address the need for comprehensive and systematic approaches to financial management within Australian government agencies, aiming to prevent mismanagement and misuse of public funds. The Act is administered by the Parliament of Australia and aims to provide clear guidelines and mechanisms for the proper allocation, management, and reporting of government funds. This particular legislative instrument, issued under section 32 of the Act, directs the transfer of specific appropriations from one government agency to another, ensuring that funds are appropriately managed and accounted for in accordance with legislative requirements. The direction issued by James Kerwin, Manager of the Financial Reporting and Cash Management Division at the Department of Finance and Administration, on 22 May 2003, specifies the transfer of funds from the Department of Immigration and Multicultural and Indigenous Affairs to the Department of Finance and Administration, reflecting the ongoing administrative adjustments and financial reallocations necessary to meet the policy objectives of the Act.

Scope and Application

The direction issued under section 32 of the Financial Management and Accountability Act 1997 is applicable to the specified appropriation items listed in the attached schedule, which outlines the transfer of funds from the 'old agency' to the 'new agency'. This legislative instrument pertains specifically to the reallocation of financial resources between designated government departments, in this instance, the Department of Immigration and Multicultural and Indigenous Affairs and the Department of Finance and Administration. The geographic and jurisdictional reach of this Act is limited to the Commonwealth level, as it pertains to the management and accountability of financial matters within the federal government of Australia. There are no stated exclusions, exemptions, or thresholds in this direction, which is intended to facilitate the administrative transfer of specified appropriation funds from one department to another. The application of this Act may be further extended or restricted through subordinate instruments, although such details are not provided in the text of this direction.

Key Provisions

The direction under section 32 of the Financial Management and Accountability Act 1997, signed by James Kerwin, Manager of the Financial Reporting and Cash Management Division at the Department of Finance and Administration, instructs the transfer of specified funds from the 'old agency' to the 'new agency'. The direction lists the appropriation items, the old and new agencies involved, and the amount of money to be transferred (section 32). For instance, it mandates the transfer of $652,587 from the Department of Immigration and Multicultural and Indigenous Affairs to the Department of Finance and Administration under the Appropriation Act (No. 1) 2002-2003 for Departmental Outputs. The act imposes several obligations on the entities involved. The 'old agency' must ensure the funds are accurately calculated and available for transfer as per the direction. The 'new agency', upon receiving the funds, must account for them correctly within their financial records and ensure they are used for the intended purposes. Both agencies are required to maintain detailed records of the transactions and any related communications to provide transparency and accountability. Failure to comply with the provisions of the direction may result in civil or criminal penalties. While the specific penalties are not detailed in the direction itself, breaches of the Financial Management and Accountability Act 1997 can lead to significant fines, imprisonment, or both, depending on the severity of the breach. The exact penalties would be determined by the courts based on the circumstances of the non-compliance. Additionally, agencies may face internal disciplinary actions or be subject to audits and investigations by the relevant authorities.