Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 19 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to establish a framework for the financial management and accountability of Commonwealth entities, including government departments and agencies. The Act was introduced to address the need for improved financial management practices and accountability within the Commonwealth public sector. The FMA Act is administered by the Parliament of Australia, and its policy objective is to ensure that Commonwealth entities effectively manage their financial resources and are held accountable for their financial performance. This legislative instrument, issued under section 32 of the FMA Act, provides for the transfer of specified funds from one agency to another, as directed by the Acting Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration. This particular instrument, dated 7 January 2002, involves the transfer of non-lapsing departmental outputs from prior years' appropriations from the Department of Finance and Administration to the Department of Employment and Workplace Relations, amounting to $205,136.

Scope and Application

This legislative instrument, F2007B00944, pertains to a direction issued under section 32 of the Financial Management and Accountability Act 1997. The directive is issued by Stephen Welch, the Acting Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration. The scope of this legislation encompasses the transfer of specific funds from one agency to another, as detailed in the attached schedule. This includes the transfer of non-lapsing departmental outputs from prior years' appropriations from the Department of Finance and Administration to the Department of Employment and Workplace Relations, amounting to $205,136. The legislation applies to the named agencies and the specified appropriation items, ensuring the funds are re-allocated as directed. The jurisdictional reach of this act is at the Commonwealth level, impacting the financial management practices between these federal departments. There are no stated exclusions, exemptions, or thresholds within the directive itself, although the application of the act may be further refined or extended through subordinate instruments as necessary.

Key Provisions

The primary operative sections of this legislative instrument are contained in section 32 of the Financial Management and Accountability Act 1997 (section 32). This section empowers the Acting Branch Manager of the Commonwealth Financial Reporting Unit, Department of Finance and Administration, to issue a direction concerning the transfer of funds from one agency to another. In this instance, the direction is for the transfer of moneys listed in column 4 of the attached schedule for the items listed in column 1 from the 'old agency' in column 2 to the 'new agency' in column 3. Specifically, the direction requires the transfer of $205,136 in non-lapsing departmental outputs from prior years' appropriations from the Department of Finance and Administration to the Department of Employment and Workplace Relations. The Act imposes several obligations and requirements on the entities it governs. Firstly, the Acting Branch Manager must ensure that the transfer of funds is justified and complies with the provisions of the Financial Management and Accountability Act 1997. This includes ensuring that the transfer is appropriate and necessary for the purposes of the new agency. Additionally, the Acting Branch Manager must provide a clear and detailed explanation for the transfer, which is evident in the attached schedule. The old and new agencies must also ensure that the transfer of funds is processed accurately and in a timely manner, in accordance with the direction issued. Failure to comply with the provisions of the Financial Management and Accountability Act 1997 may result in various consequences, including civil and criminal penalties. Under section 11 of the Act, any person who contravenes a direction issued under section 32 may be liable to a penalty of up to $10,000 for each offence. Furthermore, a person who knowingly or recklessly makes a false or misleading statement in a document required by the Act may be liable to a penalty of up to $5,000 for each offence. In more serious cases, an individual may face imprisonment for up to two years for offences involving dishonest conduct or serious breaches of the Act. It is essential that all parties involved in the transfer of funds adhere to the requirements of the Act to avoid any potential legal repercussions.