Overview

The Financial Management and Accountability Act 1997 was enacted by the Australian Parliament to establish a framework for the effective and efficient management of public funds, ensuring accountability and transparency in the use of government resources. The Act aims to address the problem of ensuring that public money is used responsibly and effectively by providing a legislative foundation for financial management practices within the public sector. The policy objective of the Act is to foster sound financial management and accountability across all Commonwealth entities. This legislative instrument, F2007B00759, issued under section 32 of the Act, is an example of the practical application of these legislative principles. Phillip Prior, from the Department of Finance and Administration, exercises his authority under the Act to direct the transfer of specified funds from one agency to another, in this case from the Department of Employment, Workplace Relations and Small Business to the Department of the Treasury. This specific direction is aimed at re-allocating resources to support an improved operating environment for small business, reflecting the ongoing commitment to effective financial management as mandated by the Act.

Scope and Application

The Direction under Section 32 of the Financial Management and Accountability Act 1997 applies to the reallocation of financial resources from one government department to another. Specifically, this directive authorises the transfer of funds from the Department of Employment, Workplace Relations and Small Business to the Department of the Treasury for the appropriation item related to 'Administered Expenses Bill 1 - Outcome 3: An improved operating environment for small business'. The transfer involves a sum of $500,000,000 and is intended to facilitate the reallocation of budgetary responsibilities and resources towards achieving the specified outcome. This Direction is applicable within the Commonwealth jurisdiction, governed by the Financial Management and Accountability Act 1997, and does not explicitly state any exclusions, exemptions, or thresholds. The scope of the application is limited to the entities and appropriation items listed within the directive itself, with no indication of extension or restriction through subordinate instruments.

Key Provisions

The main operative sections of this legislative instrument, pursuant to section 32 of the Financial Management and Accountability Act 1997, involve the direction for the transfer of specific appropriations from one agency to another. Section 32 allows for the re-allocation of funds to ensure efficient financial management within the government. According to the schedule attached, appropriations such as the Administered Expenses Bill 1 - Outcome 3 are to be moved from the Department of Employment, Workplace Relations and Small Business to the Department of the Treasury. This transfer is intended to better align resources with the objective of creating an improved operating environment for small businesses. The obligations and requirements imposed by this Act on the parties involved are clear and specific. The Department of Employment, Workplace Relations and Small Business is required to ensure that the $500,000,000 allocated for the Administered Expenses Bill 1 - Outcome 3 is transferred to the Department of the Treasury. This transfer must be documented and executed in accordance with the provisions outlined in the instrument. The Department of the Treasury, on the other hand, is required to accept the transfer and ensure that the funds are appropriately accounted for and used in line with the stated objective of enhancing the operating environment for small businesses. In terms of offences, penalties, or consequences for breach, the legislative instrument does not explicitly outline specific sanctions. However, any failure to comply with the direction could potentially lead to serious repercussions under the Financial Management and Accountability Act 1997. Non-compliance with financial management directives can result in legal action, administrative penalties, or disciplinary measures against the relevant officers. Given the significant amount of money involved, breaches may also attract scrutiny from financial oversight bodies and could lead to reputational damage for the involved departments. While exact penalties are not specified in this particular instrument, the overarching Act provides a framework for addressing such breaches effectively.