Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 23 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to address the need for robust financial management and accountability across the federal government. The Act sets out the framework for the management of public money, including the processes for appropriation, budgeting, accounting, and reporting. The Act also aims to ensure transparency and efficiency in the use of public funds, and to promote the prudent and effective use of resources. The 2007 legislative instrument, F2007B00950, is a direction issued under section 32 of the Act, which allows for the transfer of funds between agencies. The policy objective of this particular direction is to facilitate the re-allocation of financial resources to better align with the outcomes and objectives of the government. The direction issued by James Kerwin, Branch Manager, Commonwealth Financial Reporting Unit, Department of Finance and Administration, on 29 January 2002, under the authority of section 32 of the Financial Management and Accountability Act 1997, concerns the transfer of specific appropriation items from one agency to another. This transfer of funds is intended to support the efficient and effective delivery of government services, and to ensure that resources are allocated in accordance with the priorities and objectives of the government. The direction specifies the appropriation items, the old and new agencies involved, and the amount of money to be transferred, as listed in the attached schedule.

Scope and Application

The Financial Management and Accountability Act 1997 applies to the Commonwealth and its agencies, establishing standards for financial management and accountability within the federal government. This legislation, through its various sections, provides a framework for the prudent and efficient use of public funds, ensuring transparency and responsibility in the management of appropriations and financial resources. The act applies to all Commonwealth entities, including departments and agencies, and mandates the proper recording, reporting, and management of financial transactions. The legislative instrument in question, issued under section 32 of the act, specifies the transfer of funds from one agency to another, illustrating the act's role in directing the allocation and reallocation of financial resources across government bodies. The direction issued by James Kerwin, Branch Manager, Commonwealth Financial Reporting Unit, Department of Finance and Administration, demonstrates the act's practical application in ensuring that funds are appropriately managed and directed towards their intended purposes. This specific direction pertains to the transfer of appropriations from the Department of Family and Community Services to the Department of Employment and Workplace Relations, as well as the reallocation of a specific appropriation item from the Department of Employment and Workplace Relations to an unspecified 'new agency'. The geographic and jurisdictional reach of this legislation is national, as it governs financial practices across all Commonwealth entities. There are no stated exclusions or exemptions in this particular directive, although the act itself may include provisions that exempt certain entities or transactions under specific conditions. The application of the act can be extended or restricted through subordinate instruments, which may provide further detail or clarification on the implementation of financial management directives.

Key Provisions

The primary operative sections of this legislative instrument are dictated by the Financial Management and Accountability Act 1997 (FMA Act), specifically section 32. Pursuant to this section, the Branch Manager of the Commonwealth Financial Reporting Unit, James Kerwin, is authorised to direct the transfer of specific funds from one government agency to another. In this case, the transfer is from the 'old agency' to the 'new agency' as listed in the attached schedule (section 32). The funds in question pertain to administered expenses under the Appropriation Acts (No. 1) 2001-2002 for specific outcomes. The obligations and requirements imposed by the Act on the parties involved are primarily administrative in nature. The Branch Manager, James Kerwin, must ensure that the funds listed in column 4 are correctly identified and accurately transferred from the 'old agency' in column 2 to the 'new agency' in column 3. The 'old agency' must facilitate the release of the specified funds, while the 'new agency' must be prepared to receive and appropriately account for the transferred moneys. This process is intended to maintain fiscal integrity and ensure that government funds are allocated as intended by Parliament. In terms of potential consequences for breach, the FMA Act provides for both civil and criminal penalties. Civil penalties may include financial penalties, while criminal penalties may involve fines or imprisonment. The specific penalties would depend on the severity and intent behind the breach. For instance, knowingly directing the transfer of funds in a manner that contravenes the Act could result in fines up to $21,000 for an individual or $105,000 for a body corporate, as outlined in the relevant sections of the FMA Act. Additionally, any person who intentionally provides false or misleading information in connection with a transfer could face imprisonment for up to two years. Furthermore, the FMA Act includes provisions for recovery of moneys improperly transferred, meaning that if funds are transferred in error or without proper authorisation, there could be a requirement to repay the misappropriated funds. This ensures that the integrity of the financial management system is preserved and that public funds are used as authorised by Parliament. In summary, this legislative instrument under the FMA Act facilitates the transfer of specific funds between government agencies, imposes clear obligations on the parties involved, and outlines significant penalties for any breaches of the Act.