Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 27 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to establish a framework for the management and accountability of public money, aiming to ensure that financial resources are used effectively, efficiently, and economically. This legislation was introduced to address the need for a robust system of financial oversight and control within the public sector, aiming to prevent mismanagement and ensure transparency in the allocation and utilisation of public funds. In accordance with section 32 of the Act, James Kerwin, the Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, issued a direction to transfer specific funds from the Department of Communications, Information Technology and the Arts to the National Archives of Australia. The policy objective behind this direction is to re-allocate non-lapsing departmental appropriations from prior years to support the activities of the new agency, thereby ensuring that resources are directed towards their most effective use within the public sector.

Scope and Application

The Financial Management and Accountability Act 1997 governs the financial management practices of Commonwealth entities, ensuring compliance with legislative requirements and maintaining accountability for financial resources. This legislative instrument, F2007B00956, applies specifically to the transfer of specified funds from one government agency to another, as directed by the Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration. This directive, issued on 4 February 2002, mandates the transfer of a non-lapsing departmental appropriation from the Department of Communications, Information Technology and the Arts to the National Archives of Australia, amounting to $7,333,000. The Act's jurisdictional reach is nationwide, applying to all Commonwealth entities, and it encompasses the conduct and transactions of government funds, ensuring their proper management and accountability. The legislation provides a mechanism for the re-allocation of specific financial resources to enhance efficiency and effectiveness in service delivery across different government agencies. While the primary focus is on financial transfers within the Commonwealth, the Act may also be subject to further direction or regulation through subordinate instruments that could extend or modify its application. This particular directive does not specify any exclusions or exemptions, but it operates under the broader framework of the Financial Management and Accountability Act 1997, which is designed to maintain integrity and compliance in the financial practices of Commonwealth entities.

Key Provisions

The primary operative section of this legislative instrument is Section 32 of the Financial Management and Accountability Act 1997, which provides the authority for the transfer of specific funds from one government agency to another. This directive mandates the transfer of the non-lapsing departmental appropriation from prior years, amounting to $7,333,000, from the Department of Communications, Information Technology and the Arts to the National Archives of Australia. This transfer is detailed in the attached schedule, with the appropriation item, the old agency, the new agency, and the monetary amount specified in columns 1 through 4, respectively. The obligations and requirements imposed by this Act are centred around the precise and compliant transfer of the specified funds. The directive must be executed in accordance with the prescribed format, ensuring that the moneys listed in column 4 are accurately transferred from the 'old agency' in column 2 to the 'new agency' in column 3. The entities involved are required to adhere strictly to the details provided in the schedule to avoid any discrepancies or errors in the financial transfer process. Additionally, the directive must be signed by a duly authorised individual, in this case, James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, to validate the legality and authenticity of the transfer. In the event of a breach of the provisions outlined in this legislative instrument, there may be significant consequences. While the specific penalties for non-compliance are not detailed in the provided text, breaches of financial management acts can typically result in civil or criminal penalties under the relevant legislation. Civil penalties may include fines or compensation payments, while criminal penalties could involve imprisonment or substantial fines, depending on the severity and intent of the breach. The Financial Management and Accountability Act 1997, alongside other related statutes, would govern the specific enforcement mechanisms and penalties applicable to any violations of the directive.