Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 18 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted to ensure that public money is managed effectively and transparently, promoting accountability and compliance with financial management standards across government agencies. This Act was introduced to address the need for improved financial governance and control within the public sector, aiming to ensure that public funds are used efficiently and in accordance with parliamentary appropriations. The Act provides the legislative framework for the management of financial resources by Commonwealth entities, including the allocation, control, and reporting of public money. The policy objective of the Act is to enhance the integrity and efficiency of financial management within the public sector, ensuring that public funds are used responsibly and in line with legislative requirements. The legislative instrument F2007B00943, issued by Stephen Welch, Acting Branch Manager of the Commonwealth Financial Reporting Unit in the Department of Finance and Administration, directs the transfer of specified appropriations from one government agency to another. This directive, issued under section 32 of the Financial Management and Accountability Act 1997, facilitates the reallocation of funds to support the operational needs of different agencies, reflecting changes in departmental responsibilities or priorities. The transfer of funds, as detailed in the attached schedule, ensures that financial resources are appropriately directed to support the mandated activities of the relevant agencies, thereby maintaining the effectiveness of public sector service delivery.

Scope and Application

This legislative instrument, issued under section 32 of the Financial Management and Accountability Act 1997, pertains to the transfer of specific moneys from one government agency to another. The instrument is executed by Stephen Welch, who holds the position of Acting Branch Manager within the Commonwealth Financial Reporting Unit of the Department of Finance and Administration. The directive mandates the transfer of funds from the 'old agency' to the 'new agency' as specified in the attached schedule. This includes the transfer of $221,440 from the Appropriation Act (No. 1) 2001-2002 for Departmental Outputs, and $12,000 from the non-lapsing Appropriation from prior years, both originating from the Department of Communications, Information Technology and the Arts and allocated to the Department of the Environment. The instrument operates within the Commonwealth jurisdiction and is an exercise of the authority granted under the Financial Management and Accountability Act 1997, without any stated exclusions, exemptions, or thresholds in this particular instrument. Any further extensions or restrictions to its application would be managed through subordinate instruments or additional directives.

Key Provisions

The primary operative sections of this legislative instrument are contained within the Direction issued under section 32 of the Financial Management and Accountability Act 1997. This direction mandates the transfer of specific funds from one government agency to another, as detailed in the attached schedule. Column 1 lists the appropriation items, column 2 specifies the originating agency, column 3 identifies the receiving agency, and column 4 provides the monetary amounts involved in each transfer. The Direction is signed by Stephen Welch, Acting Branch Manager of the Commonwealth Financial Reporting Unit, Department of Finance and Administration, and dated 27 December 2001. The obligations and requirements imposed by this legislation are straightforward. The agencies named in the schedule must comply with the Direction by transferring the specified funds from the originating agency to the receiving agency. This includes ensuring that the correct amounts are accurately transferred, and that all necessary records and documentation are kept to reflect these changes in financial accountability. The agencies are required to maintain transparency and accuracy in their financial reporting to ensure compliance with the Financial Management and Accountability Act 1997. Failure to comply with the requirements of this Direction could result in significant consequences. While specific offences and penalties are not outlined within the legislative instrument itself, breaches of the Financial Management and Accountability Act 1997 can lead to both civil and criminal penalties. Civil penalties may include fines and other financial penalties, while criminal penalties can include imprisonment. The exact penalties depend on the nature and severity of the breach, but they are intended to enforce strict compliance with financial management and accountability standards within government agencies. Ensuring adherence to this Direction is critical to avoid any potential legal repercussions.