Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 16 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, was introduced to ensure the effective management and accountability of Commonwealth finances. This Act empowers the responsible authorities to enforce sound financial practices and provides a framework for the management of public funds. In the case of the legislative instrument F2007B00940, Stephen Welch, Acting Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, has issued a direction under section 32 of the Act to transfer specified monies from one agency to another. The purpose of this direction is to re-allocate funds from the 'old agency' to the 'new agency' as listed in the attached schedule, ensuring the correct application of appropriations and maintaining the integrity of financial management within the Commonwealth. This action aligns with the policy objectives of the Act, which include the efficient and transparent use of public funds.

Scope and Application

The direction under section 32 of the Financial Management and Accountability Act 1997 applies to the transfer of specific appropriations from one agency to another within the Commonwealth. The directive issued by Stephen Welch, the Acting Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, mandates the transfer of certain funds from the 'old agency', in this instance the Department of Defence, to the 'new agency', the Attorney-General’s Department. The geographic reach of this direction is limited to the Commonwealth level, involving entities that are subject to the Financial Management and Accountability Act 1997. The direction specifies particular appropriation items as detailed in the attached schedule, ensuring compliance with the Act's requirements for financial accountability. Any subordinate instruments that may extend or restrict the application of this direction would need to be in line with the Act's provisions and the specific appropriation items identified for transfer.

Key Provisions

The key operative sections of the legislative instrument direct the transfer of specific moneys from one agency to another, as specified in the attached schedule. Pursuant to section 32 of the Financial Management and Accountability Act 1997, Stephen Welch, Acting Branch Manager of the Commonwealth Financial Reporting Unit, Department of Finance and Administration, authorises this transfer. The moneys listed in column 4 of the schedule are to be moved from the 'old agency' in column 2 to the 'new agency' in column 3 for the appropriation items listed in column 1. This specific directive is applicable to the appropriation from the Appropriation Act (No. 1) 2001-2002, with a sum of $7,359,000 being transferred from the Department of Defence to the Attorney-General’s Department. The obligations imposed by this legislative instrument require the specified agencies to comply with the direction provided by the Acting Branch Manager. The 'old agency' must ensure that the funds specified are accurately identified and transferred to the 'new agency' within the timeframe stipulated by the direction. The 'new agency', in turn, must be prepared to receive and account for these funds as part of their financial management processes. Both agencies are required to maintain proper records and documentation of the transfer to ensure transparency and compliance with the Financial Management and Accountability Act 1997. Failure to comply with the provisions of this legislative instrument may result in significant consequences. While the specific section of the Act detailing offences and penalties is not provided in this extract, breaches of financial management directives can typically lead to both civil and criminal penalties. Civil consequences might include financial penalties or the requirement to repay misappropriated funds. Criminal penalties could involve fines or imprisonment, depending on the severity and intent behind the breach. The maximum penalties would be dictated by relevant sections of the Financial Management and Accountability Act 1997, which may include substantial fines and/or imprisonment terms for wilful or negligent breaches.