Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 15 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted to ensure that the Commonwealth's financial resources are managed in a manner that is transparent, accountable, and compliant with relevant legislation. This Act was introduced to address the need for robust financial management frameworks that could effectively oversee the allocation, utilisation, and reporting of public funds. The Act is overseen by the Parliament of Australia, with the objective of enhancing the efficiency and effectiveness of financial management across Commonwealth agencies. The legislative instrument in question, which is a direction under section 32 of the Act, aims to facilitate the transfer of specific appropriations between designated agencies to align with the current administrative and policy objectives of the government. This particular direction, issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit, Department of Finance and Administration, details the transfer of certain funds from the Department of the Prime Minister and Cabinet to the Department of Immigration and Multicultural and Indigenous Affairs, as per the attached schedule.

Scope and Application

The Financial Management and Accountability Act 1997 applies to the Commonwealth Government, and more specifically to the management and accountability of public funds within Commonwealth agencies. This legislative instrument, which is a direction issued under section 32 of the Act, pertains to the transfer of appropriations from one department to another, ensuring that the financial management of the Commonwealth adheres to the statutory requirements. The document specifies the transfer of specified moneys from the Department of the Prime Minister and Cabinet to the Department of Immigration and Multicultural and Indigenous Affairs, as detailed in the attached schedule. This transfer is geographically and jurisdictionally limited to the Commonwealth level, with no stated exclusions or exemptions in this particular directive. The application of the Act may be extended or restricted through subordinate instruments, such as regulations or further directions issued under the authority of the Act. The Act's scope ensures that financial resources are allocated appropriately and accountably across different departments, reflecting the strategic priorities and operational needs of the government.

Key Provisions

The primary operative sections of this legislative instrument are found in section 32 of the Financial Management and Accountability Act 1997. This section grants authority to direct the transfer of funds between specified agencies as detailed in the attached schedule. Specifically, Section 32 mandates the movement of non-lapsing appropriations from one agency to another, as listed in the schedule. This involves the transfer of funds from the 'old agency', listed in column 2, to the 'new agency', listed in column 3, for specific appropriation items detailed in column 1. The amount to be transferred is indicated in column 4. The directive is signed by James Kerwin, Branch Manager, Commonwealth Financial Reporting Unit, Department of Finance and Administration, dated 21 December 2001. The obligations and requirements imposed by this Act on the parties involved are clear and straightforward. The 'old agency' is required to transfer the specified funds to the 'new agency' as per the directive. The 'new agency' must be prepared to receive these funds and ensure they are accounted for and managed appropriately within the context of their own financial systems and reporting requirements. This transfer must be completed in accordance with the appropriation items listed in the schedule and the timelines specified within the directive. Both agencies must ensure that all financial transactions are properly documented and recorded, maintaining compliance with the Financial Management and Accountability Act 1997. In terms of consequences for breach, the Financial Management and Accountability Act 1997 does not explicitly detail penalties within the legislative instrument itself. However, non-compliance with directives under the Act could lead to broader repercussions under the Act, including financial penalties or disciplinary actions against individuals responsible for the oversight of these funds. The exact nature and severity of these penalties would be determined by the specific circumstances and any subsequent investigations into the breach. It is important for both the 'old agency' and the 'new agency' to adhere strictly to the directive to avoid any potential legal or administrative consequences.