Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 29 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted to ensure that public moneys are managed prudently, economically, efficiently and effectively, with due regard to the need for accountability. This Act addresses the need for clear and accountable financial management across Commonwealth agencies by setting out the framework for financial management and accountability in the federal government. The legislation was enacted by the Parliament of Australia, with the overarching policy objective being to improve the efficiency and effectiveness of financial management within government agencies. The attached legislative instrument is a direction issued under section 32 of this Act, authorising the transfer of specific funds from one agency to another, as listed in the accompanying schedule. This direction is necessary to ensure the proper allocation and management of public funds in accordance with the provisions of the Act.

Scope and Application

The direction under Section 32 of the Financial Management and Accountability Act 1997 applies to the transfer of specific appropriation items between various agencies within the Commonwealth. The directive, issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit in the Department of Finance and Administration, pertains to the movement of financial resources from the 'old agency' to the 'new agency' as detailed in the attached schedule. This includes the transfer of funds from the Department of Finance and Administration to the House of Representatives for specific appropriation items listed under the Appropriation Act (No. 1) 2001-2002. The directive applies to the financial year 2001-2002 and specifies the exact amounts to be transferred for each appropriation item. The legislation underscores the importance of clear financial accountability and the proper management of funds within the Commonwealth's administrative framework. The scope of the direction is confined to the financial transactions specified in the attached schedule, ensuring that the funds are appropriately allocated according to the directive.

Key Provisions

The operative sections of the direction issued under section 32 of the Financial Management and Accountability Act 1997 (section 32 direction) mandate the transfer of specified moneys from one government agency to another. The direction explicitly identifies the appropriation items, the old agency, the new agency, and the monetary amounts to be transferred, as outlined in the attached schedule (section 32(1)). This formal instruction serves to reassign financial resources from the old agency, in this case the Department of Finance and Administration, to the new agency, the House of Representatives, ensuring that the financial management aligns with the legislative intent. The obligations and requirements imposed by this direction include the meticulous transfer of the specified appropriation items. The old agency, which in this instance is the Department of Finance and Administration, must ensure that the financial amounts listed in column 4 are accurately moved to the new agency, which is the House of Representatives. The direction requires that these transfers be carried out in accordance with the Financial Management and Accountability Act 1997, ensuring transparency and accountability in the financial management process. This includes maintaining detailed records of the transactions to facilitate audits and compliance checks. The direction also stipulates that any failure to comply with the provisions of the section 32 direction could result in severe consequences. Under the Financial Management and Accountability Act 1997, breaches of the direction could lead to civil or criminal penalties, depending on the nature and severity of the breach. The exact penalties are not detailed in the direction itself but could include fines or imprisonment as prescribed by the relevant legislation. The potential for such consequences underscores the importance of adhering to the requirements set forth in the direction.