Direction under section 32, Financial Management and Accountability Act 1997 – Adjustments of Appropriations on Change of Agency Functions (No. 23 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, was introduced to address the need for robust financial management and accountability across Commonwealth entities. This Act provides a framework for the effective management of public money, ensuring that financial resources are used efficiently, effectively, and in accordance with applicable laws and regulations. The Act aims to promote transparency, accountability, and sound financial practices within the public sector. The legislative instrument, F2006B11676, issued under section 32 of the Act, specifies the transfer of certain appropriations from one agency to another, ensuring that financial resources are allocated appropriately to support the mandated activities and outcomes of the respective agencies. This instrument, issued by Anne Hazell, Division Manager of the Financial Reporting and Cash Management Division within the Department of Finance and Administration, facilitates the reallocation of funds in a manner consistent with the overarching policy objectives of the Financial Management and Accountability Act 1997.

Scope and Application

The Legislative Instrument F2006B11676, issued under the Financial Management and Accountability Act 1997, specifies a directive for the transfer of certain appropriations from one government agency to another. This directive applies to the appropriation items listed in the schedule, which includes specific funding allocations from the Department of Agriculture, Fisheries and Forestry to IP Australia. The scope of this legislation pertains to the financial management of these appropriations, ensuring compliance with financial accountability standards. This legislative instrument is geographically applicable within the Commonwealth of Australia, thereby affecting federal government entities and their financial operations. The application of this Act is specific to the entities named and the appropriation items detailed in the schedule, without broader implications for other agencies or sectors unless they are similarly identified in subordinate instruments or subsequent legislative updates. There are no stated exclusions or exemptions within this directive, and it strictly adheres to the appropriations listed, ensuring a precise and targeted financial reallocation.

Key Provisions

The legislative instrument under consideration is a Direction issued pursuant to section 32 of the Financial Management and Accountability Act 1997 (FMA Act). This Direction mandates the transfer of specified funds from one agency to another, as detailed in the attached schedule. Specifically, section 32 of the FMA Act empowers the Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, to issue such a Direction. Here, the Division Manager, Anne Hazell, has directed that certain appropriation items be transferred from the Department of Agriculture, Fisheries and Forestry to IP Australia. The operative sections of this instrument detail the appropriations to be transferred, identifying the originating agency, the receiving agency, and the monetary amounts involved. For instance, the Appropriation Act (No. 1) 2004-2005 Departmental Outputs amounting to $112,090 from the Department of Agriculture, Fisheries and Forestry are to be transferred to IP Australia. Similarly, a non-lapsing appropriation from prior years totaling $1,378,439 and Appropriation Act (No. 1) 2004-2005 Administered expenses – Outcome 1 totalling $73,000 are also directed to be transferred to IP Australia. These sections provide a clear outline of the financial transfers required under the Direction. The obligations and requirements imposed by this Direction are straightforward. The Department of Agriculture, Fisheries and Forestry is obligated to transfer the specified funds to IP Australia as directed. This transfer must occur in accordance with the details provided in the attached schedule, ensuring that the correct appropriation items are moved to the correct agency. This directive ensures that IP Australia receives the necessary funding as allocated by the government, facilitating the intended operations and activities of the receiving agency. Failure to comply with the requirements of this Direction could result in various consequences. While the legislative instrument does not explicitly detail specific offences or penalties, breaches of directions issued under the FMA Act may lead to civil or criminal liability under the relevant sections of the Act. The Financial Management and Accountability Act 1997 provides for a range of penalties, including fines and imprisonment, for non-compliance with financial management requirements. The maximum penalties for offences under the FMA Act can be severe, reflecting the importance of adhering to financial management directives.