Direction under section 32, Financial Management and Accountability Act 1997 – Adjustments of Appropriations on Change of Agency Functions (No. 14 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 was enacted to strengthen the accountability and transparency of financial management within Australian government agencies, addressing issues of fiscal responsibility and proper stewardship of public funds. This Act empowers the Parliament to issue directions concerning the transfer of funds between agencies to ensure efficient and effective use of resources. The policy objective of this legislation is to maintain robust financial controls and to provide clear accountability for the use of public money. In the context of this particular legislative instrument, the General Manager, Financial Management Group, Department of Finance and Administration, Ian McPhee, has directed the transfer of specified funds from one agency to another to align resources with the current administrative responsibilities and objectives of the government. This legislative instrument, issued under section 32 of the Act, details the transfer of funds from the Department of Employment and Workplace Relations and the Department of Immigration and Multicultural and Indigenous Affairs to their respective new agencies. This transfer includes appropriations from prior years and specific outcomes as outlined in the attached schedule, ensuring that the financial resources are appropriately allocated to meet the current operational needs and strategic goals of the government.

Scope and Application

This legislative instrument, F2006B11667, represents a direction issued under Section 32 of the Financial Management and Accountability Act 1997, applying to the transfer of specific appropriations from one government agency to another. The directive, signed by Ian McPhee, the General Manager of the Financial Management Group within the Department of Finance and Administration, mandates the movement of funds from the 'old agency' to the 'new agency', as listed in the attached schedule. This legislation affects government entities, specifically detailing appropriations for equity injections and administered assets and liabilities, and applies to the transfer of funds across various departments including the Department of Employment and Workplace Relations and the Department of Immigration and Multicultural and Indigenous Affairs. The jurisdiction of this Act is Commonwealth-wide, impacting the financial management practices across multiple agencies within the Australian government. The instrument does not explicitly mention any exclusions, exemptions, or thresholds, but it does specify the financial amounts to be transferred, thereby delineating its scope and application within the Australian government's financial accountability framework.

Key Provisions

The direction issued under section 32 of the Financial Management and Accountability Act 1997 (the "Act") outlines the transfer of specific appropriation funds from certain agencies to others. According to the direction, the Department of Employment and Workplace Relations and the Department of Immigration and Multicultural and Indigenous Affairs are involved in the transfer of funds. The items listed in column 1 include Equity Injections (prior years), Administered Assets and Liabilities (prior years), and Administered Expenses from the Appropriation Act (No. 2) 2004-2005 and the Appropriation Act (No. 1) 2004-2005. The amounts listed in column 4 represent the specific financial allocations that need to be transferred from the 'old agency' in column 2 to the 'new agency' in column 3. The Act imposes specific obligations on the agencies involved in the transfer of these funds. These obligations include ensuring that the funds are transferred accurately and in accordance with the provisions set out in the direction. The agencies must also ensure that the transfer of funds is properly recorded and accounted for in their financial systems. Furthermore, the agencies must comply with any additional instructions or directions that may be issued by the General Manager, Financial Management Group, Department of Finance and Administration. Breaches of the obligations imposed by the Act may result in various consequences, including both civil and criminal penalties. The maximum penalties for breaches can vary depending on the nature and severity of the breach. For instance, under the Act, individuals or entities found guilty of dishonestly causing a loss to the Commonwealth, or intentionally or recklessly failing to comply with the Act, can be subject to fines and imprisonment. The specific penalties are detailed in the Act and can include substantial financial penalties as well as imprisonment terms that reflect the seriousness of the offence. In summary, the direction under section 32 of the Financial Management and Accountability Act 1997 mandates the transfer of specific appropriation funds from certain agencies to others. The involved agencies must ensure accurate and compliant transfers, with potential civil and criminal penalties for non-compliance. The detailed provisions of the Act, including specific penalties, ensure that financial management within the Commonwealth is conducted with integrity and accountability.