Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 2 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to address the need for improved financial management practices and accountability within Commonwealth agencies. This legislation was introduced to ensure that public funds are managed efficiently, effectively and transparently, and that accountability is maintained through robust financial reporting and oversight. The Act provides the legal framework for financial management in Commonwealth agencies, establishing principles and standards to guide their financial operations. Pursuant to section 32 of the FMA Act, a direction has been issued to facilitate the transfer of specific appropriation funds from the Department of Communications, Information Technology and the Arts to the National Office for the Information Economy. This direction, issued by James Kerwin of the Commonwealth Financial Reporting unit within the Department of Finance and Administration, aims to ensure that financial resources are appropriately allocated to support the operations and objectives of the new agency. The policy objective underlying this direction is to streamline financial management and support the efficient functioning of government entities by reassigning budgetary resources where they are most needed.

Scope and Application

This legislative instrument, issued under section 32 of the Financial Management and Accountability Act 1997, pertains to the transfer of specific funds from one agency to another within the Commonwealth government. The directive applies to the appropriation items listed in the attached schedule, which involves the reallocation of funds from the Department of Communications, Information Technology and the Arts to the National Office for the Information Economy. The transfers encompass both departmental outputs and administered expenses related to Outcome 5, as specified in the Appropriation Act (No. 1) 2001-2002. The geographic and jurisdictional reach of this instrument is confined to the Commonwealth level, impacting only those agencies listed within the Australian federal government. The instrument does not specify any exclusions, exemptions, or thresholds, but it does note the precise amounts to be transferred. The application of this direction is limited to the particular appropriation items and agencies mentioned, and any broader application would require further legislative or administrative action.

Key Provisions

This legislative instrument, pursuant to section 32 of the Financial Management and Accountability Act 1997 (FMA Act), directs the transfer of specific funds from one agency to another. The directive, issued by James Kerwin, SES Band 1 of the Commonwealth Financial Reporting within the Department of Finance and Administration, details the appropriation items, the agencies involved, and the monetary amounts to be transferred. For instance, appropriation item one from the 2001-2002 Appropriation Act, amounting to $32,250,000, is to be transferred from the Department of Communications, Information Technology and the Arts to the National Office for the Information Economy. Similarly, appropriation item two, amounting to $3,700,000, is also to be transferred from the Department of Communications, Information Technology and the Arts to the National Office for the Information Economy. Under the FMA Act, the Act imposes obligations on the agencies involved to ensure the proper transfer of funds as directed. The 'old agency' is required to facilitate the transfer of the specified funds to the 'new agency' within the stipulated timeframe. This involves ensuring that all financial records are accurately updated to reflect the transfer, and any necessary documentation is completed and submitted to the relevant authorities. The 'new agency' must be prepared to receive the transferred funds and ensure that they are accounted for correctly in their financial records. Both agencies must comply with any additional requirements set out in the FMA Act or any other relevant legislation. Failure to comply with the requirements of this legislative instrument can result in various consequences. Under the FMA Act, breaches can lead to both civil and criminal penalties. Civil penalties may include fines, and in more severe cases, criminal penalties can be imposed, including imprisonment. The exact penalties depend on the nature and severity of the breach, but the Act provides for significant deterrents to ensure compliance. The Act also allows for the recovery of any misappropriated funds, and in cases of wilful misconduct, additional penalties may apply. It is imperative for both the 'old agency' and the 'new agency' to adhere strictly to the directives to avoid these consequences.