Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 15 of 2003-2004)

Overview

The Financial Management and Accountability Act 1997 was enacted to ensure that financial management within Commonwealth entities is conducted in a responsible, transparent, and accountable manner. This Act provides the legal framework for managing public money and ensuring that government resources are used effectively and efficiently. The legislation was introduced to address the need for a robust system of financial oversight and accountability to maintain public trust and ensure the prudent use of public funds. The Financial Management and Accountability Act 1997 is administered by the Parliament of Australia, which enacts legislation to govern the financial practices of Commonwealth entities. The policy objective of this Act is to ensure that public funds are managed with integrity, accountability, and transparency, thereby promoting public confidence in the government's use of financial resources. This legislative instrument, issued under section 32 of the Act, directs the transfer of specific appropriation funds from one agency to another, ensuring that financial resources are appropriately allocated in line with the Act's requirements.

Scope and Application

The Direction under Section 32 of the Financial Management and Accountability Act 1997 applies to the specified appropriation items listed in the attached schedule, determining the transfer of funds from an 'old agency' to a 'new agency' as outlined. This legislative instrument is pertinent to the Departmental Outputs of the Department of Immigration and Multicultural and Indigenous Affairs and Equity Injections of the Department of Finance and Administration, as indicated in the schedule. The transfer of the specified appropriation items is governed by the Financial Management and Accountability Act 1997, which is a Commonwealth Act and therefore has a national jurisdictional reach. The Direction does not specify any exclusions, exemptions, or thresholds, but it does note the exact amount of $2,000,000 to be transferred. The Act may extend or restrict its application through subordinate instruments, but such details are not provided in the text. The Direction is effective as of 29 June 2004 and is signed by Brett Kaufmann, Acting Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration.

Key Provisions

The operative sections of this legislative instrument direct the transfer of specific funds from one agency to another, as outlined in the attached schedule. Section 32 of the Financial Management and Accountability Act 1997 empowers the Acting Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, to issue such a direction. This direction mandates the transfer of appropriation funds from the 'old agency' to the 'new agency' as specified in the schedule (Section 32). In terms of obligations, the Acting Division Manager is required to ensure that the transfer of funds is executed as per the directive issued. The directive specifies the appropriation items, the 'old agency', the 'new agency', and the amount of money to be transferred. The schedule attached to the directive provides a detailed list of these items, including the appropriation act, the old and new agencies, and the monetary amounts involved. The Acting Division Manager must ensure that the transfer of these funds is accurately recorded and that all relevant parties are informed of the change in financial responsibility. The Act imposes obligations on the entities involved to comply with the direction issued under section 32. Both the 'old agency' and the 'new agency' are required to facilitate the transfer of the specified funds as directed. They must ensure that the financial records are updated to reflect the change in appropriation, and that any reporting or accountability requirements are met. Failure to comply with the direction may result in financial mismanagement or accountability issues, which could lead to further investigation or penalties. Regarding offences and consequences, the Financial Management and Accountability Act 1997 outlines potential penalties for non-compliance with the Act's provisions. While specific penalties are not detailed in this legislative instrument, the Act generally provides for civil and criminal penalties for breaches. Civil penalties can include fines, and in more serious cases, criminal penalties can apply, which may involve imprisonment. The exact penalties depend on the nature and severity of the breach, as well as any mitigating or aggravating factors. The Act aims to ensure financial integrity and accountability, and any failure to comply with its provisions can have significant legal and financial repercussions.