Direction under section 32, Financial Management and Accountability Act 1997 – Adjustments of Appropriations on Change of Agency Functions (No. 19 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for financial management and accountability within the Australian government, ensuring transparency, efficiency, and effectiveness in the use of public funds. The Act aims to establish a robust system of financial management across government agencies, promoting sound fiscal practices and adherence to budgetary processes. The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to address the need for improved financial management practices across government departments and agencies. This legislative instrument, issued under section 32 of the Act, directs the transfer of specific appropriation items from one agency to another to ensure proper financial accountability and allocation of resources. The policy objective is to facilitate the efficient and effective use of public funds by ensuring that resources are appropriately managed and directed towards intended purposes, thereby enhancing overall fiscal responsibility within the government.

Scope and Application

The Legislative Instrument F2006B11672 applies to the transfer of specific appropriations within the Commonwealth of Australia, specifically under the authority of the Financial Management and Accountability Act 1997. This direction issued by Anne Hazell, the Division Manager of Financial Reporting and Cash Management Division within the Department of Finance and Administration, pertains to the reallocation of financial resources between government agencies. The act applies to the transfer of an appropriation item from the Department of Family and Community Services to the Department of Human Services, amounting to $1,000,000. The scope of this instrument is limited to the specified appropriation item and does not extend to other funds or agencies unless explicitly stated in a subsequent legislative instrument. This direction is confined to the Commonwealth level and does not pertain to state or territory jurisdictions. No exclusions, exemptions, or thresholds are specified in this particular instrument, although the Financial Management and Accountability Act 1997 may encompass such provisions in its broader framework.

Key Provisions

The directive under section 32 of the Financial Management and Accountability Act 1997 (sections 32(1) and 32(2)) instructs the transfer of specific funds from one agency to another. In this instance, the Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, Anne Hazell, has authorised the transfer of $1,000,000 from the Department of Family and Community Services to the Department of Human Services for the Appropriation Act (No. 1) 2004-2005. This transfer is detailed in the attached schedule, where column 1 lists the appropriation item, column 2 the old agency, column 3 the new agency, and column 4 the monetary amount. The obligations imposed by this legislation on the agencies involved primarily revolve around ensuring that the transfer of funds is executed accurately and in compliance with the directive. The old agency, the Department of Family and Community Services, must facilitate the transfer of the specified amount to the new agency, the Department of Human Services, as directed. The new agency, in turn, must be prepared to receive and properly account for the transferred funds within its budget and financial reporting systems. Both agencies are required to adhere to the financial management policies and procedures stipulated under the Financial Management and Accountability Act 1997. In the event of non-compliance or failure to transfer the funds as directed, there could be significant consequences. While the directive itself does not explicitly detail offences or penalties, breaches of the Financial Management and Accountability Act 1997 may result in both civil and criminal liabilities. Civil penalties could include fines or other financial penalties as prescribed by the Act, while criminal penalties might include imprisonment, particularly if the breach is deemed to be of a serious nature. The maximum penalties would depend on the specific provisions of the Act and the severity of the breach. It is crucial for both agencies to meticulously follow the directive to avoid any potential legal repercussions.