Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 15 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Commonwealth Parliament to strengthen financial management practices across Australian government agencies, aiming to address issues of accountability and transparency in the management of public funds. The Act provides a framework for financial management and accountability, ensuring that government agencies comply with financial regulations and maintain accurate financial records. The legislative instrument F2006B11668, issued under section 32 of the Act, is a directive by Ian McPhee, the General Manager of the Financial Management Group within the Department of Finance and Administration, to transfer specified appropriations from one agency to another. This direction was made on 23 November 2004 to facilitate the reallocation of funds between the Department of the Prime Minister and Cabinet and the Department of Family and Community Services, as listed in the attached schedule. The policy objective underlying this directive is to ensure the efficient and effective allocation of budgetary resources to meet the operational needs of government agencies.

Scope and Application

The direction issued under section 32 of the Financial Management and Accountability Act 1997 pertains to the transfer of specific appropriation items between designated government agencies. This legislative instrument applies to the Department of the Prime Minister and Cabinet and the Department of Family and Community Services, which are both Commonwealth entities. The direction mandates the transfer of specified funds from the former to the latter, as listed in the attached schedule, which includes details such as appropriation item, old agency, new agency, and the amount in Australian dollars. The directive is limited to the financial transfers as specified and does not extend to other financial operations or conduct of these agencies. The geographical and jurisdictional reach of this legislation is confined to the Commonwealth level, applying solely to government departments within the Australian federal system. The legislation does not provide for exclusions, exemptions, or thresholds beyond the scope of the specified appropriation transfers. Any further application or extension of this direction would require additional legislative or administrative action.

Key Provisions

The main operative sections of this legislative instrument (F2006B11668) pertain to the transfer of specific appropriations from one agency to another, as directed by the General Manager, Financial Management Group, Department of Finance and Administration under section 32 of the Financial Management and Accountability Act 1997 (section 1). This direction mandates the reallocation of funds listed in column 4 of the attached schedule, from the 'old agency' in column 2 to the 'new agency' in column 3 (section 2). The appropriation items listed in column 1 detail the specific funds being transferred. For instance, the appropriation from the Appropriation Act (No. 1) 2004-2005 for Departmental Outputs, originally allocated to the Department of the Prime Minister and Cabinet, is now being transferred to the Department of Family and Community Services (section 3). The obligations and requirements imposed by this legislation on the parties involved are straightforward yet crucial for financial governance. The General Manager, Financial Management Group, must ensure that the specified funds are accurately and efficiently transferred from the 'old agency' to the 'new agency' as per the schedule. Both the originating and receiving departments must comply with the directive, maintaining accurate records of the transfers to facilitate accountability and transparency in financial management. The act requires adherence to the prescribed procedures and timelines for the execution of these fund transfers to uphold the integrity of financial management within the government. In terms of consequences for non-compliance, while specific offences and penalties are not detailed in the legislative instrument itself, breaches of the Financial Management and Accountability Act 1997 could lead to various civil or criminal consequences. Under the Act, individuals found guilty of misconduct or mismanagement of funds may face disciplinary action, including fines or imprisonment, depending on the severity of the breach. The Act also provides for the recovery of misappropriated funds and other corrective measures to ensure that financial integrity is maintained. Therefore, entities and individuals involved in the fund transfer process must ensure strict adherence to the directive to avoid any potential repercussions.