Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 16 of 2002-2003)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to address the need for robust financial management practices within government agencies. This Act aims to ensure that public money is managed efficiently, effectively and transparently, thereby maintaining public trust in government operations. The Act provides a framework for financial management, accountability, and reporting by government entities, ensuring compliance with established financial policies and practices. This legislative instrument, F2007B00826, represents a direction given under section 32 of the Act, facilitating the transfer of specified funds from one agency to another. This particular direction, issued by Jim Kerwin, Division Manager of Financial Reporting and Cash Management Division, Department of Finance and Administration, on 27 June 2003, facilitates the reallocation of non-lapsing appropriations from the Department of Communications, Information Technology and the Arts to the National Office for the Information Economy, highlighting the Act's role in enabling seamless financial transitions between government bodies.

Scope and Application

The Financial Management and Accountability Act 1997, under which this direction operates, is primarily concerned with the management and accountability of Commonwealth financial resources, ensuring that they are used efficiently, effectively, and economically in accordance with the law. This legislation applies to all Commonwealth entities, which include departments, agencies, and other bodies that are established by or under an Act of Parliament and receive Commonwealth funding. The Act regulates the financial management practices of these entities, including the transfer of funds, which must be conducted in accordance with the Act's provisions. The direction issued by the Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, pertains specifically to the transfer of specified non-lapsing appropriations from one agency to another. In this instance, the direction facilitates the transfer of funds from the Department of Communications, Information Technology and the Arts to the National Office for the Information Economy, with the specified amount being $1,807,897.31. This legislative instrument extends its reach across the Commonwealth, ensuring consistency and compliance with financial management standards nationwide. The direction does not include any stated exclusions, exemptions, or specific thresholds but operates within the broader framework established by the Financial Management and Accountability Act 1997, which can be further refined or expanded through subordinate instruments.

Key Provisions

The primary operative section of this legislative instrument is section 32 of the Financial Management and Accountability Act 1997, which empowers the Division Manager of Financial Reporting and Cash Management Division within the Department of Finance and Administration to direct the transfer of funds from one agency to another. Specifically, in this case, Jim Kerwin is directing the transfer of non-lapsing appropriations from prior years from the Department of Communications, Information Technology and the Arts to the National Office for the Information Economy (sections 32(1) and 32(2)). This directive involves a transfer of $1,807,897.31, as listed in column 4 of the attached schedule. The Act imposes several obligations on the parties involved in this transfer. The Division Manager, Jim Kerwin, must ensure that the transfer of funds is documented correctly and in compliance with the Financial Management and Accountability Act 1997. Both the 'old agency' and the 'new agency' must co-operate in the transfer process, ensuring that the funds are moved accurately and that the appropriate records are kept to reflect this transaction. Additionally, the Division Manager must ensure that the transfer is authorised and complies with any relevant financial regulations and policies. Failure to comply with the provisions of the Financial Management and Accountability Act 1997 could result in civil or criminal penalties. Under the Act, unauthorised or improper transfers of funds could be considered breaches of financial regulations, potentially leading to disciplinary action against the responsible parties. While the specific penalties for such breaches are not outlined in this legislative instrument, they could include fines, suspension, or termination of employment for individuals, as well as legal action against the agencies involved. The maximum penalties for such offences could vary depending on the severity of the breach and the specific provisions of the Act.