DIRECTION UNDER SECTION 32, FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997
I, James Kerwin, Branch Manager, Commonwealth Financial Reporting Unit, Department of Finance and Administration, pursuant to section 32 of the Financial Management and Accountability Act 1997, hereby direct that the moneys listed in column 4 of the attached schedule for the items listed in column 1, be transferred from the 'old agency' listed in column 2 to the 'new agency' listed in column 3.
Column 1 | Column 2 | Column3 | Column 4 |
Appropriation Item | Old Agency | New Agency | $ |
Appropriation Act (No. 1) 2001-2002 Administered Expenses – Outcome 1 | Department of Communications, Information Technology and the Arts | Department of the Environment and Heritage | 60,000 |
| | | |
James Kerwin
29 January 2002 No. 24 of 2001-2002
Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted to address the need for robust financial management and accountability frameworks within Australian Commonwealth entities. This Act provides the legislative basis for ensuring that financial resources are managed efficiently and effectively, while also holding entities accountable for their financial decisions and operations. The FMA Act was introduced by the Parliament of Australia to provide a comprehensive set of rules and guidelines that govern financial management practices across various Commonwealth agencies. The policy objective behind the FMA Act is to enhance transparency, efficiency, and accountability in the use of public funds, thereby fostering public trust and confidence in government operations.
The legislative instrument referenced, F2007B00951, is a direction issued under section 32 of the FMA Act. It mandates the transfer of specified funds from one agency to another, ensuring that financial resources are appropriately allocated to support the intended outcomes and objectives of the Commonwealth. This specific direction, issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit in the Department of Finance and Administration, facilitates the reallocation of $60,000 from the Department of Communications, Information Technology and the Arts to the Department of the Environment and Heritage. Such transfers are critical in enabling agencies to meet their operational needs and deliver services effectively, while also maintaining compliance with the financial management requirements stipulated in the FMA Act.
Scope and Application
The direction issued under section 32 of the Financial Management and Accountability Act 1997 pertains to the transfer of specified funds from one government agency to another, as delineated in the attached schedule. This instrument applies to the financial operations of the Commonwealth of Australia, specifically affecting the entities involved in the transfer, namely the Department of Communications, Information Technology and the Arts as the 'old agency' and the Department of the Environment and Heritage as the 'new agency'. The scope of this legislation extends to the financial appropriations listed under the Appropriation Act (No. 1) 2001-2002, with a particular focus on the Administered Expenses associated with Outcome 1, involving a transfer of $60,000. This financial direction does not explicitly outline exclusions or exemptions but is contingent on the appropriations and agencies specified within the schedule, ensuring adherence to the financial management and accountability framework stipulated by the Act.
Key Provisions
The primary operative sections of the Direction (F2007B00951) under section 32 of the Financial Management and Accountability Act 1997 (FMA Act) detail the specific appropriation items and the amounts to be transferred between agencies. According to section 32(1) of the FMA Act, the Direction mandates that the funds listed in column 4 of the attached schedule for the items in column 1 are to be transferred from the 'old agency' in column 2 to the 'new agency' in column 3. For instance, in the example provided, $60,000 from the Appropriation Act (No. 1) 2001-2002 under Administered Expenses – Outcome 1 is to be moved from the Department of Communications, Information Technology and the Arts to the Department of the Environment and Heritage. The Direction is signed by James Kerwin, Branch Manager, Commonwealth Financial Reporting Unit, Department of Finance and Administration, dated 29 January 2002, and identified as No. 24 of 2001-2002.
The Act imposes several obligations and requirements on the parties it governs. Firstly, the Direction must be executed in accordance with the provisions of the FMA Act, ensuring that financial resources are managed transparently and accountably. The agencies involved must follow the prescribed procedures to facilitate the transfer of funds as specified in the Direction. This includes ensuring that the financial records accurately reflect the movement of funds between the agencies. Moreover, the Direction serves to update the financial management systems to reflect the new allocation of funds, ensuring that all future financial reporting and budgeting processes are aligned with these changes.
Under the FMA Act, breaches of the Direction or failure to comply with the obligations can result in civil or criminal consequences. Section 32(4) of the FMA Act provides that a person who contravenes a Direction commits an offence and is liable to a penalty. The specific penalties for breaches may vary, but they can include fines or other sanctions as prescribed by law. In cases of significant non-compliance or deliberate misconduct, the penalties can be severe, impacting both the individual and the agency involved. It is essential that the agencies adhere strictly to the Direction to avoid any legal repercussions.