Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 28 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted to strengthen the financial management practices of Australian government agencies, thereby ensuring greater transparency, accountability, and efficiency in the use of public funds. The Act provides a legislative framework that mandates rigorous financial reporting, compliance with fiscal policies, and adherence to government-wide standards. By addressing a gap in the governance of financial resources, the Act aims to mitigate risks associated with mismanagement and to promote public trust in the government's financial stewardship. The policy objective stated within the Act is to ensure that public moneys are managed in a manner that is transparent, accountable, and in accordance with the law, thereby enhancing the overall effectiveness and efficiency of government operations. This legislative instrument, issued under section 32 of the Financial Management and Accountability Act 1997, directs the transfer of specific appropriations between government agencies. Issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, the direction outlines the reallocation of funds from the Department of Industry, Tourism and Resources to the Department of Education, Science and Training. This reallocation is detailed in a schedule attached to the instrument, which lists the appropriation items, the originating and receiving agencies, and the amounts involved. The directive aims to ensure that financial resources are appropriately allocated to support the outcomes and objectives of the respective departments, thereby aligning with the overarching policy objectives of the Act.

Scope and Application

The legislative instrument F2007B00957 under the Financial Management and Accountability Act 1997 applies to the transfer of specified funds from one agency to another as identified in the attached schedule. This direction issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit, Department of Finance and Administration, involves the reallocation of appropriations from the Department of Industry, Tourism and Resources to the Department of Education, Science and Training for specific outcomes and expenses as listed. The instrument specifies the appropriation items, the originating and receiving agencies, and the exact dollar amounts to be transferred. The scope of this direction is confined to the financial transfers as outlined and does not extend to other financial activities or entities outside the specified appropriation items. The jurisdiction of this direction is Commonwealth-wide, affecting the financial management practices of the named departments. The application of this instrument is precise, detailing the appropriation items and the corresponding financial amounts to be reallocated from the old agency to the new agency. There are no stated exclusions or exemptions within the scope of this particular direction, though it is pertinent to note that the overarching Financial Management and Accountability Act 1997 may encompass further stipulations, exclusions, or thresholds that govern broader financial management practices. This direction does not explicitly extend or restrict its application through subordinate instruments, as it stands as a specific directive under the powers granted by section 32 of the Act.

Key Provisions

The operative sections of this legislative instrument under the Financial Management and Accountability Act 1997 (FMA Act) direct the transfer of specified monies from one government agency to another. Specifically, section 32 of the FMA Act empowers the Branch Manager, Commonwealth Financial Reporting Unit, Department of Finance and Administration, to issue such directions. In this instance, James Kerwin has directed the transfer of funds from the 'old agency' to the 'new agency', as detailed in the attached schedule. The funds in question are derived from appropriations listed in the Appropriation Act (No. 1) 2001-2002 and include departmental outputs and administered expenses. The obligations and requirements imposed by this direction include the precise transfer of the listed monies from the specified appropriation items under the old agency to the designated new agency. This ensures that the financial resources are correctly allocated to the agencies responsible for the respective outcomes and outputs as outlined in the appropriation acts. The direction must be carried out in accordance with the financial management policies and procedures established under the FMA Act, ensuring transparency and accountability in the management of public funds. Failure to comply with the directions issued under section 32 of the FMA Act may result in serious consequences. Although specific offences and penalties are not detailed in the instrument, breaches of the FMA Act generally can lead to both civil and criminal liabilities. Civil penalties may include fines, while criminal penalties can include imprisonment, reflecting the seriousness with which the law regards the mismanagement of public funds. The exact penalties would depend on the nature and severity of the breach, as well as any applicable provisions within the FMA Act or other relevant legislation.