Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 20 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted by the Parliament of Australia to address issues of accountability and transparency in the management of Commonwealth funds. This legislation is designed to ensure that public money is used efficiently, economically, effectively, and ethically, thereby promoting fiscal responsibility and public trust in government operations. The FMA Act provides a framework for the management of Commonwealth finances, including the allocation, expenditure, and reporting of public funds. In the context of the legislative instrument F2007B00948, the FMA Act facilitates the transfer of specific appropriations from one agency to another, ensuring that financial resources are appropriately directed to support the intended outcomes and activities of the Commonwealth. The policy objective of the FMA Act is to uphold high standards of financial management across all Commonwealth agencies, thereby safeguarding public funds and enhancing the accountability of government to the Australian people.

Scope and Application

The legislative instrument F2007B00948, issued under section 32 of the Financial Management and Accountability Act 1997, pertains to the transfer of specific funds from one government department to another. It applies to the appropriation items listed in the attached schedule, which includes the transfer of monies from the former Department of Reconciliation and Aboriginal and Torres Strait Islander Affairs to the Department of Immigration and Multicultural and Indigenous Affairs. The instrument covers appropriations made under the Appropriation Act (No. 1) 2001-2002 as well as non-lapsing appropriations from prior years held in cash reserves in a bank account. The directive is issued by Stephen Welch, Acting Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, and the transfers are effective as of 17 January 2002. The instrument does not specify any exclusions, exemptions, or thresholds but does note the amounts to be transferred, providing a clear directive for financial reallocation within the Commonwealth. The jurisdictional reach of this instrument is national, applying to the financial management practices of Commonwealth government departments.

Key Provisions

The legislative instrument under the Financial Management and Accountability Act 1997 (FMA Act) directs the transfer of specific financial resources from the Former Department of Reconciliation and Aboriginal and Torres Strait Islander Affairs to the Department of Immigration and Multicultural and Indigenous Affairs. This transfer is detailed in the attached schedule, where columns 1, 2, 3, and 4 list the appropriation item, the old agency, the new agency, and the monetary amounts respectively (section 32). For instance, under the Appropriation Act (No. 1) 2001-2002, funds related to 'Departmental Outputs – Outcome 1' amounting to $124,576.80 and 'Administered Expenses – Outcome 1' totalling $84,750.68 are to be moved from the Former Department to the new Department. Additionally, non-lapsing appropriations from prior years, which are cash reserves in the bank account, amounting to $33,897.42, are also included in this transfer. Under this legislative instrument, the Acting Branch Manager, Commonwealth Financial Reporting Unit, Department of Finance and Administration, is tasked with ensuring that the specified funds are accurately transferred as per the directive. This includes verifying the appropriation items, ensuring the correct amounts are moved from the Former Department to the new Department, and maintaining accurate financial records to reflect these changes. The directive also requires that these transfers comply with any other relevant financial management policies and regulations, ensuring that the funds are used in accordance with their original appropriation purposes. The Act imposes several obligations and requirements on the parties involved in this financial transfer. The Acting Branch Manager must ensure that all transfers are meticulously documented and that the financial records are updated to reflect the changes. Furthermore, both the Former Department and the Department of Immigration and Multicultural and Indigenous Affairs are required to cooperate fully with this process, providing any necessary documentation and ensuring the accuracy of the financial data provided. Both departments must also ensure that the transferred funds are used in compliance with their respective financial management policies and any other relevant legislation. Breaching the provisions of the FMA Act or failing to comply with the requirements of this legislative instrument can result in serious consequences. While the specific penalties for non-compliance are not detailed in the instrument, the FMA Act generally provides for both civil and criminal penalties. Civil penalties can include fines up to $10,000 for individuals and significantly higher amounts for corporations, depending on the severity and impact of the breach. Criminal penalties can include imprisonment for up to five years for serious breaches, reflecting the importance of adhering to financial management laws. These potential consequences underscore the necessity for all parties involved to carefully follow the directive and ensure compliance with the Act.