Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 3 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to establish a framework for effective financial management and accountability across the Australian Government. This Act provides the legal basis for the prudent, efficient, and effective use of public funds, ensuring that government agencies are held accountable for their financial decisions and activities. The FMA Act was introduced to address the need for robust financial governance and transparency within the public sector, aiming to prevent financial mismanagement and to foster public confidence in government operations. Enacted by the Parliament of Australia, the FMA Act outlines various provisions for financial management, including the delegation of financial authorities and the requirement for agencies to maintain proper financial records. The policy objective of the Act is to enhance the overall financial performance and accountability of government agencies, ensuring that resources are used effectively and efficiently to achieve desired outcomes. This legislative instrument, issued under section 32 of the FMA Act, pertains to the transfer of specific appropriations from one agency to another. It was issued by James Kerwin, a senior executive within the Commonwealth Financial Reporting division of the Department of Finance and Administration, on 13 November 2001. This directive facilitates the reallocation of funds as specified in the attached schedule, which details the appropriation items, the original and new agencies involved, and the respective amounts to be transferred. This mechanism ensures that financial resources are appropriately aligned with the strategic objectives and operational needs of the involved agencies.

Scope and Application

This legislative instrument applies to the financial management and accountability of specified appropriations within the Australian federal government. It pertains to the transfer of funds from one agency to another as designated within the schedule attached to the direction. The authority for this transfer is granted under section 32 of the Financial Management and Accountability Act 1997, and it involves the reallocation of budgetary appropriations from the 'old agency', in this case the Departmental Outputs – Outcome 1, to the 'new agency', specifically the Australia Council, under the Department of Communications, Information Technology and the Arts. The financial transfer noted amounts to $2,500,000 from the Appropriation Act (No. 1) 2001-2002. This legislative instrument does not specify any exclusions, exemptions, or thresholds beyond those outlined in the Act itself and the appropriation act referenced. The application of this direction is confined to the Commonwealth level, and it does not extend to state or territory governments. The scope of the Act is further defined and potentially expanded through subordinate instruments, which may provide additional detail or conditions for the transfer of funds as per the overarching legislative framework.

Key Provisions

The key operative section of this legislative instrument is section 32 of the Financial Management and Accountability Act 1997 (section 32). This section empowers the specified officer, James Kerwin, to direct the transfer of certain funds from one agency to another. In this instance, the directive concerns the transfer of funds related to the Appropriation Act (No. 1) 2001-2002, specifically the allocation under Departmental Outputs – Outcome 1, from the Departmental Outputs of the Australia Council to the Department of Communications, Information Technology and the Arts. The amount specified for transfer is $2,500,000. The obligations and requirements imposed by this Act include the precise detailing of the appropriation items, the old and new agencies involved, and the exact sum to be transferred. The directive must comply with the parameters set out in the Financial Management and Accountability Act 1997, ensuring that the transfer is lawful and adheres to the proper financial management practices. The document must also be dated and signed by the directing officer, as evidenced by the date of 13 November 2001 and the signature of James Kerwin. Regarding the consequences of breach, the Act itself does not explicitly state any offences, penalties, or consequences within this legislative instrument. However, under the Financial Management and Accountability Act 1997, any non-compliance with the provisions of the Act, including improper or unauthorised transfers of funds, could potentially result in severe repercussions. These might include financial penalties, administrative sanctions, and possible legal action under both civil and criminal law, depending on the nature and extent of the breach. The maximum penalties for breaches of financial management legislation can vary but often include substantial fines and, in some cases, imprisonment.