Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 2 of 2002-2003)

Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for the financial management and accountability of Commonwealth entities. It was introduced to address issues related to financial transparency, management efficiency, and compliance with financial policies and regulations. This Act serves as a cornerstone in ensuring that public funds are managed responsibly and effectively. The enacting body responsible for this legislation is the Parliament of Australia, with the policy objective of promoting sound financial practices across all government agencies. The legislative instrument in question, dated 5 July 2002, directs the transfer of specific appropriation items from one agency to another, ensuring that financial resources are allocated appropriately in line with the objectives of the Act. This particular direction, issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, outlines the transfer of funds from the 'old agency' to the 'new agency' as specified in the attached schedule.

Scope and Application

The Direction issued under section 32 of the Financial Management and Accountability Act 1997 applies to the transfer of specific funds between designated government agencies. This legislation authorises the Commonwealth Financial Reporting Unit, Department of Finance and Administration, to manage the reallocation of appropriated funds. The directive specifies the appropriation items, the agencies involved in the transfer, and the precise amount of money to be moved. In this instance, the Direction mandates the transfer of $7,300,000 from the National Office for the Information Economy to the Department of Communications, Information Technology and the Arts, as listed in the attached schedule. This legal instrument governs the movement of funds within the Commonwealth's financial framework, ensuring that budgetary allocations are appropriately managed and reallocated according to government priorities and operational needs. The Direction extends the application of the Financial Management and Accountability Act 1997 by providing specific instructions for the transfer of funds, thereby reinforcing the Act's provisions through subordinate instruments.

Key Provisions

The main sections of this legislative instrument are section 32 of the Financial Management and Accountability Act 1997, which provides the authority for the direction to be made, and the attached schedule which details the appropriations to be transferred. Section 32 permits the Branch Manager of the Commonwealth Financial Reporting Unit to direct the transfer of moneys between agencies as listed in the schedule. This direction, signed by James Kerwin on 5 July 2002, specifies the appropriation items from the 'old agency' National Office for the Information Economy to the 'new agency' Department of Communications, Information Technology and the Arts, with a particular amount of $7,300,000 to be moved. This Act imposes several obligations and requirements on the entities involved. The Branch Manager, in this case James Kerwin, must ensure that the transfer of funds is done in accordance with the directions specified in the legislative instrument. The old agency, National Office for the Information Economy, must facilitate the transfer by releasing the specified amount of moneys to the new agency, the Department of Communications, Information Technology and the Arts. The new agency must then properly account for and utilise these funds in accordance with the appropriations for which they were originally intended. Failure to comply with the direction could potentially lead to legal and financial repercussions. Although the instrument does not explicitly detail offences, penalties, or consequences, breaches of directions made under the Financial Management and Accountability Act 1997 can often lead to serious ramifications under Australian law. For instance, misappropriating public funds can result in criminal charges under the Commonwealth criminal code, with penalties including fines and imprisonment. Additionally, there could be internal administrative penalties imposed by the Department of Finance and Administration, or other enforcement actions taken to ensure compliance with financial directives.