Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 14 of 2003-2004)

Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for the management of public money, ensuring that financial resources are used efficiently, effectively and economically, and that public accountability is maintained. This Act was introduced to address the need for a comprehensive legislative framework to govern financial management practices within the Australian public sector, aiming to promote transparency, accountability and efficiency in the allocation and utilisation of public funds. The Act was enacted by the Parliament of Australia, reflecting the federal government's commitment to sound financial management and public accountability. This legislative instrument, issued under section 32 of the Act, demonstrates the operational aspect of the Act by directing specific appropriations from one agency to another, thereby facilitating the efficient reallocation of financial resources in line with the policy objectives of the Act. This direction, issued by Jim Kerwin, Division Manager of the Financial Reporting and Cash Management Division within the Department of Finance and Administration, underscores the importance of adherence to the financial management principles enshrined in the Act. By transferring specific appropriation items from the 'old agency' to the 'new agency', the direction ensures that funds are appropriately allocated to support the intended outcomes and activities, in accordance with the policy objectives of the Financial Management and Accountability Act 1997. This reinforces the overarching goal of the Act, which is to uphold the highest standards of financial management and accountability within the public sector.

Scope and Application

The legislative instrument F2007B00872, issued under section 32 of the Financial Management and Accountability Act 1997, applies to the transfer of specific funds between government agencies as listed in the attached schedule. It outlines the directive issued by Jim Kerwin, the Division Manager of Financial Reporting and Cash Management Division, Department of Finance and Administration, who is authorised to make such financial transfers. The instrument affects the Australian Government Information Management Office and the Department of Communications, Information Technology and the Arts, transferring funds allocated under various appropriation acts. The geographic and jurisdictional reach of this instrument is within the Commonwealth of Australia, impacting federal government agencies directly. The instrument does not specify exclusions, exemptions, or thresholds, but rather details the specific appropriation items and amounts to be transferred. The application of this instrument may be extended or further detailed through subordinate instruments as necessary.

Key Provisions

The primary operative sections of this legislative instrument involve a direction under section 32 of the Financial Management and Accountability Act 1997 (section 32). This section allows the Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, to direct the transfer of specific moneys from one agency to another. In this instance, the direction (paragraph 1) specifies the appropriation items and the corresponding old and new agencies, along with the monetary amounts to be transferred as listed in column 4 of the attached schedule (section 32(1)). The obligations and requirements imposed by this Act on the relevant parties are straightforward. The Division Manager must ensure that the specified funds are accurately and timely transferred from the 'old agency' to the 'new agency' as directed (section 32(1)). The 'old agency' is required to facilitate the transfer by providing necessary documentation and ensuring that the funds are available for transfer, while the 'new agency' must be prepared to receive the funds and account for them appropriately in their financial records (section 32(2)). In terms of consequences for non-compliance, the Financial Management and Accountability Act 1997 does not explicitly detail specific offences, penalties, or civil/criminal consequences for breach of the direction issued under section 32. However, non-compliance with directions issued under the Act may result in broader administrative and financial consequences, including potential audits, inquiries, or disciplinary actions against the responsible officers or agencies (section 32(3)). The seriousness of any repercussions would depend on the context and the extent of the non-compliance.