Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 17 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to provide a framework for the financial management and accountability of Commonwealth entities. This legislation was introduced to address the need for a coherent and robust system of financial management across all Commonwealth agencies to ensure transparency, accountability, and efficient use of public funds. The policy objective of the Act is to establish clear guidelines and standards for financial management, enabling the government to effectively oversee and control the financial activities of its agencies. The legislative instrument, F2007B00941, issued under section 32 of the Act, exemplifies the practical application of these provisions by directing the transfer of specific funds from one agency to another, thereby ensuring alignment with the Act's overarching goals of financial prudence and accountability.

Scope and Application

This legislative instrument, F2007B00941, is a direction issued under section 32 of the Financial Management and Accountability Act 1997. The Act applies to the transfer of specific moneys from one agency to another within the Commonwealth. This particular direction pertains to the reallocation of funds from the 'old agency', the Department of Communication, Information Technology and the Arts, to the 'new agency', the Department of the Prime Minister and Cabinet. The transfer concerns the appropriation item listed under the Appropriation Act (No. 1) 2001-2002, specifically for Administered Expenses - Outcome 1, amounting to $568,000. The direction is executed by Stephen Welch, Acting Branch Manager of the Commonwealth Financial Reporting Unit in the Department of Finance and Administration, dated 27 December 2001. The scope of this instrument is limited to the financial reallocation as specified and does not extend to other financial management practices or agencies outside the scope of this direction.

Key Provisions

The legislative instrument under the Financial Management and Accountability Act 1997 (section 32) directs that specific appropriations be transferred from one government agency to another. In this instance, the Acting Branch Manager, Commonwealth Financial Reporting Unit, Department of Finance and Administration, has authorised the transfer of funds from the Department of Communication, Information Technology and the Arts to the Department of the Prime Minister and Cabinet. The particular appropriation in question is related to Administered Expenses for Outcome 1, with a specified amount of $568,000, as detailed in the attached schedule. This legislation imposes clear obligations on the involved agencies, requiring the Department of Communication, Information Technology and the Arts to release the specified funds to the Department of the Prime Minister and Cabinet. It also requires the Department of the Prime Minister and Cabinet to accept and account for these funds as part of their budgetary allocations. The instrument ensures that the financial management and accountability are maintained by clearly delineating the source and destination of the funds, thereby promoting transparency and proper financial governance. Should any party fail to comply with the directives outlined in the legislation, they may be subject to civil or criminal penalties. The Financial Management and Accountability Act 1997 provides for various consequences of non-compliance, which may include fines or other penalties as prescribed by law. While specific penalties are not detailed in this instrument, they are generally outlined in the broader legislative framework which governs financial management within the Australian public sector. The seriousness of the breach and the intent behind the non-compliance will be key factors in determining the appropriate penalties.