Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 2 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997, enacted by the Commonwealth Parliament, was introduced to ensure that public sector entities effectively manage public funds and are held accountable for their financial performance. This Act aims to provide a robust framework for the financial management of Commonwealth entities, ensuring that funds are used efficiently, effectively, and in accordance with the law. The legislation provides the authority for the Department of Finance and Administration to direct the transfer of funds between agencies to align with the financial management objectives and improve overall accountability. This particular legislative instrument, issued by Brett Kaufmann, Acting Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, on 7 July 2004, provides specific direction for the transfer of appropriation items from one agency to another as listed in the attached schedule, reflecting the policy objective of streamlining financial management within the public sector.

Scope and Application

The direction issued under section 32 of the Financial Management and Accountability Act 1997 pertains to the transfer of specific moneys from one agency to another, as outlined in the attached schedule. The directive applies to the 'old agency', which is the Department of the Senate, and the 'new agency', which is the Department of Parliamentary Services. The transfers involve appropriations listed under the Appropriation (Parliamentary Departments) Act (No. 1) 2004-2005 and a non-lapsing appropriation from prior years. The amounts involved in the transfers are $9,820,000 and $3,095,000 respectively. This direction applies within the Commonwealth jurisdiction, governed by the Australian government’s financial management laws. The Act itself does not specify exclusions, exemptions, or thresholds beyond the scope of the transfers listed, though it is noted that the application may be extended or restricted through subordinate instruments. The directive does not explicitly mention any exclusions or exemptions, and the thresholds are defined by the specific appropriation items detailed in the schedule.

Key Provisions

The legislative instrument issued under section 32 of the Financial Management and Accountability Act 1997 (section 32) directs the transfer of specific appropriations from one agency to another. According to this direction, certain funds allocated for specific appropriation items are to be moved from the 'old agency' to the 'new agency'. For instance, an appropriation of $9,820,000 listed under the 'Appropriation (Parliamentary Departments) Act (No. 1) 2004-2005, Departmental Outputs' is to be transferred from the Department of the Senate to the Department of Parliamentary Services. Similarly, a non-lapsing appropriation of $3,095,000 is also to be transferred from the Department of the Senate to the Department of Parliamentary Services. This direction is effective from 7 July 2004. The entities involved, namely the Department of the Senate and the Department of Parliamentary Services, are required to comply with this direction and facilitate the transfer of the specified funds as directed. The Acting Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, Brett Kaufmann, has issued this direction, and it is binding on the agencies involved. Failure to comply with this direction could result in legal and financial repercussions. Although the specific consequences are not detailed in this legislative instrument, it is reasonable to infer that non-compliance with such a direction could lead to penalties under the Financial Management and Accountability Act 1997. These penalties could include financial penalties, administrative sanctions, or other legal consequences. It is important to note that the exact nature and severity of these penalties would depend on the specific circumstances and the provisions of the Financial Management and Accountability Act 1997.