Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 3 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to provide a framework for the financial management and accountability of Commonwealth entities, addressing the need for clear guidelines and oversight in the management of public funds. The Act aims to ensure that public money is used efficiently, effectively, and economically, and that there is proper accountability for the financial management of Commonwealth entities. This legislative instrument is a direction issued under section 32 of the Act, which facilitates the transfer of specified appropriation funds between different government agencies to align resources with their changing responsibilities and priorities. The direction, issued by Brett Kaufmann, Acting Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, specifies the transfer of funds from the Department of Immigration and Multicultural and Indigenous Affairs to other designated departments, ensuring compliance with the policy objectives of the Act. This direction under section 32 of the Financial Management and Accountability Act 1997 facilitates the reallocation of funds to meet the evolving needs of various government departments and agencies. By transferring specific appropriation items from the Department of Immigration and Multicultural and Indigenous Affairs to other departments such as the Department of Family and Community Services, the Department of Employment and Workplace Relations, the Attorney-General’s Department, and the Department of Communications, Information Technology and the Arts, the direction supports the efficient and effective use of public funds. This alignment of resources with departmental responsibilities is essential to achieving the overarching policy objective of the Act, which is to ensure sound financial management and accountability across the Commonwealth.

Scope and Application

The Direction under Section 32 of the Financial Management and Accountability Act 1997, issued by Brett Kaufmann, Acting Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, pertains to the transfer of specific appropriations from the Department of Immigration and Multicultural and Indigenous Affairs to other designated agencies. The direction applies to the appropriation items listed in the attached schedule, detailing the appropriations from the Appropriation Act (No. 1) 2004-2005. The affected agencies include the Department of Family and Community Services, Department of Employment and Workplace Relations, Attorney-General’s Department, and Department of Communications, Information Technology and the Arts. This direction operates within the Commonwealth jurisdiction, impacting the financial management and accountability across these specified departments. The direction does not include any explicit exclusions, exemptions, or thresholds beyond the specified appropriation transfers. While the primary act provides the legislative framework, the specific appropriations and agencies involved are detailed through this subordinate instrument, thereby extending the application of the act in a targeted manner.

Key Provisions

The legislative instrument issued under section 32 of the Financial Management and Accountability Act 1997 outlines the directive for the transfer of specific appropriations from one agency to another. Section 32 of the Act empowers the Acting Division Manager of the Financial Reporting and Cash Management Division in the Department of Finance and Administration to direct such transfers. In this case, Brett Kaufmann, in his capacity as Acting Division Manager, directs the transfer of funds from the Department of Immigration and Multicultural and Indigenous Affairs to other designated departments as listed in the schedule attached to the document. These transfers pertain to appropriations under the Appropriation Act (No. 1) 2004-2005 for departmental outputs. The obligations imposed on the parties involved are to ensure that the specified appropriations are transferred accurately and efficiently from the 'old agency' to the 'new agency' as directed. This involves meticulous record-keeping and financial reporting to ensure compliance with the Act and to maintain transparency and accountability in the financial management of these appropriations. The 'old agency' is required to release the funds as per the directive, while the 'new agency' must be prepared to receive and appropriately account for the transferred funds within their financial systems. Failure to comply with the provisions of the Financial Management and Accountability Act 1997 or the directions issued under it may result in significant consequences. Offences under this Act can lead to both civil and criminal penalties. Civil penalties may include fines, while criminal penalties can result in imprisonment, reflecting the seriousness with which the Act treats breaches of financial management and accountability. The maximum penalties are not explicitly stated in the legislative instrument but are outlined in the principal Act, which can vary depending on the nature and severity of the breach. Compliance is crucial to avoid these potential repercussions and to uphold the integrity of the financial management system in Australia.