Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 2 of 2003-2004)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the effective and efficient management of public funds, ensuring accountability and transparency in financial management across Commonwealth entities. This legislation was introduced to address the need for a unified and robust system of financial management and accountability, enabling the Australian government to meet its fiscal responsibilities and provide assurance to the public and parliament. The Act is administered by the Parliament of Australia, with the overarching policy objective of promoting sound financial management practices that support the delivery of government services and programs. The legislative instrument in question, issued under section 32 of the FMA Act, pertains to the transfer of specific appropriations from one agency to another, ensuring that funds are appropriately allocated and managed in accordance with legislative requirements. This particular direction, issued by Jim Kerwin, Division Manager of the Financial Reporting and Cash Management Division within the Department of Finance and Administration, authorises the transfer of funds from the Departmental Outputs of the National Office for the Information Economy to the Department of Communications, Information Technology and the Arts for the financial year 2003-2004. This transfer is specified in the appropriation item under the Appropriation Act (No. 1) 2003-2004, reflecting the government's commitment to effective financial stewardship and the reallocation of resources to meet evolving policy priorities.

Scope and Application

This legislative instrument, issued under section 32 of the Financial Management and Accountability Act 1997, pertains to the transfer of specified funds from one agency to another. It applies to the appropriation items listed in the attached schedule, detailing the old agency, the new agency, and the exact amount of money to be transferred. The instrument is directed by Jim Kerwin, the Division Manager of Financial Reporting and Cash Management Division, within the Department of Finance and Administration, thereby ensuring compliance with financial management regulations. The directive has a jurisdictional reach within the Commonwealth of Australia, specifically involving departmental appropriations for the financial year 2003-2004. There are no stated exclusions or exemptions in this directive, but it is limited to the specific appropriations listed in the schedule. This instrument does not extend or restrict application through subordinate instruments, as it is a standalone directive for the stated transfers.

Key Provisions

The main operative section of this legislative instrument is section 32 of the Financial Management and Accountability Act 1997, which provides the authority for the transfer of specific funds between government agencies. In this instance, section 32 allows the Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, to direct the transfer of moneys listed in column 4 of the attached schedule from the 'old agency' in column 2 to the 'new agency' in column 3. The appropriations are detailed in column 1, and the transfer is specifically for the Departmental Outputs listed under the Appropriation Act (No. 1) 2003-2004. The obligations and requirements imposed by this legislation primarily involve the accurate and authorised transfer of funds as specified in the attached schedule. The Division Manager, in this case, Jim Kerwin, must ensure that the transfer of $1,100,000 from the Departmental Outputs of the National Office for the Information Economy to the Department of Communications, Information Technology and the Arts is carried out in accordance with the provisions outlined in section 32. This includes maintaining proper records of the transaction and ensuring compliance with any related financial management policies and procedures. In terms of the consequences for breach, the Financial Management and Accountability Act 1997 does not specify explicit offences, penalties, or consequences for failure to comply with the provisions of section 32 within this particular legislative instrument. However, non-compliance with the Act generally may lead to civil or criminal liability, depending on the nature and severity of the breach. The Act provides for various sanctions, including fines and imprisonment, for breaches of financial management and accountability requirements, although the specific penalties are not detailed in this document. It is important for the Division Manager to ensure adherence to the Act to avoid any potential legal repercussions.