Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 18 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, was introduced to address the need for robust financial management practices across Commonwealth entities. This legislation sets out the framework for the management of public money and the accountability of public officials in relation to financial resources. It provides the authority for the issuance of directions under section 32, which facilitates the efficient and effective allocation of financial resources between agencies. The policy objective of the Act is to ensure that public funds are used responsibly and effectively to achieve the desired outcomes for the government and the public. The attached legislative instrument, F2006B11671, is a direction issued by Anne Hazell, Division Manager of Financial Reporting and Cash Management Division, Department of Finance and Administration, on 3 December 2004, to transfer specified moneys from the Department of Family and Community Services to the Department of Employment and Workplace Relations, as outlined in the schedule. This transfer is in accordance with the appropriation items listed for the financial year 2004-2005.

Scope and Application

The legislative instrument F2006B11671, issued under section 32 of the Financial Management and Accountability Act 1997, pertains specifically to the reallocation of appropriation funds between different agencies within the Commonwealth of Australia. The instrument is issued by Anne Hazell, Division Manager of Financial Reporting and Cash Management Division, Department of Finance and Administration, and it mandates the transfer of specified appropriations from one agency to another. The scope of the Act applies to entities within the Australian Government, particularly those involved in the allocation and management of financial resources as outlined in the appropriation acts. The geographic reach of this instrument is national, impacting federal agencies across the Commonwealth. The instrument does not explicitly state exclusions or exemptions, but its application is limited to the appropriation items listed in the attached schedule, thereby restricting its application to the specific financial transfers detailed therein. Any further extension or restriction of application is to be found in subordinate instruments or further directives issued under the authority of the Financial Management and Accountability Act 1997.

Key Provisions

The legislative instrument issued under section 32 of the Financial Management and Accountability Act 1997 involves the transfer of certain funds from one agency to another. Specifically, Section 1 of the document states that the Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, has directed the transfer of moneys as listed in column 4 of the attached schedule from the 'old agency' in column 2 to the 'new agency' in column 3. This transfer pertains to appropriation items under the Appropriation Act (No. 1) 2004-2005. The moneys being transferred include amounts allocated for administered expenses under different outcomes, with the primary shift occurring between the Department of Family and Community Services and the Department of Employment and Workplace Relations. The obligations and requirements imposed by this legislative instrument are primarily administrative and financial in nature. The Division Manager is required to ensure that the funds listed in the schedule are accurately and promptly transferred from the old agency to the new agency as per the directive. The Department of Finance and Administration must also maintain detailed records of these transactions to ensure accountability and compliance with the Financial Management and Accountability Act 1997. Furthermore, the agencies involved must cooperate in the transfer process, providing necessary documentation and verification of the funds to be moved. In terms of breaches and consequences, the Financial Management and Accountability Act 1997 includes provisions for penalties in case of non-compliance. While the specific penalties are not detailed in the legislative instrument, under the Act, non-compliance can lead to civil or criminal penalties, including fines and, in severe cases, imprisonment. The exact nature and severity of these penalties would depend on the specific breach and the discretion of the court. Additionally, failure to comply with the Act can result in broader financial mismanagement issues, which could lead to audits, investigations, and further legal actions to rectify the non-compliance and recover any misused funds.