Direction under section 32, Financial Management and Accountability Act 1997 – Adjustments of Appropriations on Change of Agency Functions (No. 20 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 was enacted to address the need for improved financial management and accountability across Australian government agencies. The Act provides a legislative framework that ensures government funds are managed prudently and transparently, thereby safeguarding public resources. The enacting body was the Commonwealth Parliament, which recognised the importance of having robust financial accountability mechanisms to ensure effective governance and public trust. The policy objective of the Act is to promote efficient, economic, effective and effective use of public money, ensuring that financial resources are used for the purposes for which they were appropriated. This legislative instrument, F2006B11673, issued under section 32 of the Financial Management and Accountability Act 1997, exemplifies the Act’s application in reallocating appropriated funds. The Direction issued by Anne Hazell, Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, on 9 December 2004, facilitates the transfer of specific appropriation items from one government agency to another. This transfer aims to align financial resources with the current operational needs and responsibilities of the agencies involved, thereby supporting the overarching policy objective of optimal financial management within the public sector.

Scope and Application

The direction under section 32 of the Financial Management and Accountability Act 1997 applies to the transfer of specified appropriation items from one government agency to another. Specifically, it concerns the movement of funds from the Department of Immigration and Multicultural and Indigenous Affairs to the Department of Finance and Administration for the Appropriation Act (No. 1) 2004-2005, detailing a transfer of $207,207. This directive is issued by Anne Hazell, the Division Manager of Financial Reporting and Cash Management Division, within the Department of Finance and Administration. The application of this Act is limited to the prescribed appropriation items and agencies involved in the financial transaction, thereby ensuring that the specified funds are appropriately allocated in accordance with the statutory provisions. The geographic reach of this Act is national, as it pertains to Commonwealth government departments, and it does not extend to state or territory agencies. This directive is precise in its application and does not contain exclusions or exemptions, nor does it establish any thresholds beyond those specified in the appropriation act itself. The Financial Management and Accountability Act 1997 provides for the possibility of further elaboration through subordinate instruments, although this particular direction does not extend its application beyond the explicit details provided.

Key Provisions

The primary provision of this legislative instrument, under section 32 of the Financial Management and Accountability Act 1997, is a direction to transfer specific funds from one agency to another (section 32). This direction is issued by Anne Hazell, Division Manager of the Financial Reporting and Cash Management Division in the Department of Finance and Administration. The funds specified in column 4 of the attached schedule are to be moved from the 'old agency' listed in column 2 to the 'new agency' listed in column 3. For example, appropriation item No. 1 from the Appropriation Act (No. 1) 2004-2005, amounting to $207,207, is to be transferred from the Departmental Outputs of the Department of Immigration and Multicultural and Indigenous Affairs to the Department of Finance and Administration. The obligations imposed by this Act primarily pertain to the agencies involved in the transfer. The 'old agency' must ensure that the specified funds are available for transfer and that the transaction is processed in accordance with the direction given. The 'new agency', on the other hand, is required to accept the transferred funds and account for them appropriately within their financial records. Both agencies must comply with the directives provided to maintain financial integrity and transparency. Failure to comply with the provisions of this Act may result in various consequences. While the legislative instrument itself does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance, breaches of the Financial Management and Accountability Act 1997 can lead to significant repercussions. Under the Act, non-compliance can result in disciplinary action against public officers, financial penalties, or even criminal charges in severe cases. The maximum penalties for such breaches, as outlined in the Act, can include substantial fines and imprisonment, depending on the severity of the breach and the intent behind it. Therefore, adherence to the directive is crucial to avoid these potential consequences.