Direction under section 32, Financial Management and Accountability Act 1997 – Adjustments of Appropriations on Change of Agency Functions (No. 21 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to ensure efficient, effective and economic use of public resources by the Commonwealth and its agencies. It addresses the need for clear accountability and management of public funds, ensuring they are used in accordance with legislative requirements and policy objectives. The Act is fundamental in establishing a robust framework for financial management across government entities. This legislative instrument, issued under section 32 of the Act, demonstrates the practical application of these principles by directing the transfer of specific appropriations between agencies, thereby ensuring financial resources are allocated as intended by Parliament. The policy objective of this direction is to facilitate the efficient reallocation of funds to support the operations and objectives of the receiving agency, aligning with the broader goals of the Act to maintain fiscal discipline and accountability.

Scope and Application

This legislative instrument pertains specifically to the Financial Management and Accountability Act 1997, providing a directive for the transfer of certain appropriations from one government agency to another. The instrument is issued under section 32 of the Act, empowering the Division Manager of Financial Reporting and Cash Management Division within the Department of Finance and Administration to effectuate the transfer of funds. The listed appropriations, originally assigned to the Department of the Prime Minister and Cabinet, are being reallocated to the Department of Family and Community Services. The specified appropriations include a sum from the Appropriation Act (No. 1) 2004-2005 for departmental outputs and a non-lapsing appropriation from prior years. This transfer of funds underscores the need for precise financial management and accountability within the Australian government, ensuring that resources are appropriately allocated to meet the ongoing operational requirements of the relevant departments. This legislative instrument thus plays a crucial role in the effective financial oversight and reallocation of resources within the Commonwealth.

Key Provisions

The legislative instrument F2006B11674, issued under section 32 of the Financial Management and Accountability Act 1997, authorises the transfer of specific funds from one government agency to another. This transfer is detailed in the attached schedule, which lists appropriation items, the originating agency, the receiving agency, and the monetary amounts involved (section 32). The directive is issued by Anne Hazell, Division Manager of the Financial Reporting and Cash Management Division within the Department of Finance and Administration, on 16 December 2004. This directive ensures that funds previously allocated to the Department of the Prime Minister and Cabinet are redirected to the Department of Family and Community Services. The amounts specified for transfer include both a lapsed appropriation from the Appropriation Act (No. 1) 2004-2005 and a non-lapsing appropriation from prior years. The obligations imposed by this instrument on the parties involved are primarily administrative and financial in nature. The Department of the Prime Minister and Cabinet, as the originating agency, is required to facilitate the transfer of the specified funds to the Department of Family and Community Services, which becomes the receiving agency. This transfer must be executed in accordance with the detailed schedule provided within the instrument, ensuring accuracy in the amounts listed and the appropriate documentation to support the financial transaction. The Department of Family and Community Services, as the receiving agency, must also comply with internal financial controls and reporting requirements to accurately record and account for the received funds. Failure to comply with the provisions of this legislative instrument could result in significant consequences. The Financial Management and Accountability Act 1997 stipulates that breaches of its provisions may lead to both civil and criminal penalties. The exact penalties are not detailed within the instrument but generally, such breaches could result in fines, imprisonment, or both, depending on the severity of the non-compliance. The Financial Management and Accountability Act 1997 provides for maximum penalties that could apply in cases of serious misconduct or negligence in financial management. The specific details of these penalties would be outlined in the main Act, but they could include substantial fines and potential imprisonment terms for individuals found to be in violation of the Act's provisions.