Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 30 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted to address the need for robust financial management and accountability within Australian government agencies. The Act aims to ensure that public funds are used efficiently, effectively, and in accordance with the law, thus maintaining public trust in government operations. This legislation was introduced by the Commonwealth Parliament and serves the policy objective of enhancing transparency and accountability in financial practices across federal agencies. The attached legislative instrument, issued under the authority of the Act, provides a directive for the transfer of specified funds from one agency to another, illustrating the Act’s role in facilitating financial restructuring within the public sector.

Scope and Application

The direction issued under section 32 of the Financial Management and Accountability Act 1997 concerns the transfer of specific appropriations from one government agency to another. This legislative instrument applies to the entities named in the schedule, namely the Department of Transport & Regional Services and the Australian Customs Service, and specifically targets the appropriations listed in the schedule, including both a specific appropriation from the Appropriation Act (No. 1) 2001-2002 and a non-lapsing departmental appropriation from prior years. The geographic and jurisdictional reach of this direction is limited to the Commonwealth level, impacting the financial management practices within these federal agencies. There are no stated exclusions or exemptions in this particular directive, nor are there any thresholds mentioned that would affect the applicability of the transfer. The authority to extend or restrict the application of this direction is potentially supported by subordinate instruments under the overarching Financial Management and Accountability Act 1997, although such extensions or restrictions are not detailed in this specific legislative instrument.

Key Provisions

The legislative instrument issued under section 32 of the Financial Management and Accountability Act 1997 (FMA Act) provides specific instructions for the transfer of certain funds from one agency to another. Section 32 allows for the direction to be given by the Commonwealth Financial Reporting Unit, Department of Finance and Administration, to facilitate the appropriate allocation of appropriations. The directive issued by James Kerwin, the Branch Manager, mandates the transfer of specified funds from the 'old agency' to the 'new agency'. The relevant appropriation items, along with the corresponding old and new agencies, and the amounts to be transferred, are detailed in the attached schedule. For instance, appropriation item 'Departmental Outputs – Outcome 1' from the Department of Transport and Regional Services is to be transferred to the Australian Customs Service in the amount of $305,606, as well as an additional $18,905 from non-lapsing departmental appropriation from prior years. The obligations imposed on the parties governed by this Act include the compliance with the directive as specified. The 'old agency' is required to facilitate the transfer of the listed funds to the 'new agency' within the stipulated timeframe. This ensures that the financial resources are appropriately allocated and managed, maintaining the integrity and accountability of the Commonwealth's financial operations. The directive is clear and specific, leaving little room for deviation from the prescribed course of action. Failure to comply with the provisions of this Act could result in various consequences. The FMA Act sets out a framework for financial management and accountability within the Commonwealth, and any breaches of this framework could lead to legal and administrative repercussions. While the specific offences and penalties are not detailed in this particular legislative instrument, the FMA Act generally provides for both civil and criminal penalties for non-compliance. These can include fines, imprisonment, or other penalties as prescribed by the Act. The seriousness of the penalties reflects the importance of adherence to the financial management and accountability standards set forth by the Act.