Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 31 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to establish a framework for financial management and accountability within Australian Commonwealth entities. This Act was introduced to address the need for improved financial management practices and accountability mechanisms across government agencies, ensuring transparency and compliance with financial regulations. The Act is administered by the Parliament of Australia, and its policy objective is to enhance the efficiency and effectiveness of financial management within the Commonwealth. This legislative instrument, F2007B00963, issued under section 32 of the FMA Act, directs the transfer of specified funds from one agency to another, ensuring that financial resources are appropriately allocated to support the intended outcomes and outputs of government programs.

Scope and Application

The Direction issued under section 32 of the Financial Management and Accountability Act 1997 pertains specifically to the transfer of funds between government agencies as outlined in the attached schedule. The directive applies to the appropriation items listed, which are sourced from specified acts and financial years, and involves the reallocation of these funds from the 'old agency' to the 'new agency' as detailed. The geographic reach of this legislation is national, applying across the Commonwealth of Australia, and it affects the entities involved directly, namely the Department of Finance and Administration and the Attorney-General’s Department. This Direction ensures compliance with financial management requirements and accountability provisions stipulated in the Act, thereby maintaining the integrity of financial transactions within government agencies. The exclusions or exemptions from this Direction are not explicitly stated, but it is clear that the scope is limited to the specified appropriation items and agencies mentioned in the schedule. The application of this Direction can be extended or clarified through subordinate instruments as required.

Key Provisions

The legislation in question (F2007B00963) is a Direction issued under section 32 of the Financial Management and Accountability Act 1997. This Direction mandates the transfer of specific appropriations from one government agency to another, as outlined in the attached schedule. Section 32 of the Act allows for the re-allocation of funds between agencies to ensure proper financial management and accountability. Specifically, the Direction requires the transfer of funds listed in column 4 of the schedule from the 'old agency' in column 2 to the 'new agency' in column 3 for the appropriation items listed in column 1. The obligations imposed by this Direction on the relevant parties include the physical transfer of the specified funds from the 'old agency' to the 'new agency'. This transfer must occur as per the details provided in the attached schedule, which lists the appropriation items, the agencies involved, and the amounts to be transferred. The Direction mandates that these funds are to be moved accurately and in a timely manner, ensuring that the financial resources are appropriately allocated as directed. In terms of potential consequences for non-compliance, breaches of the Financial Management and Accountability Act 1997 can result in serious repercussions. The Act itself does not specify maximum penalties within this Direction, but generally, breaches can lead to criminal charges, fines, or other civil penalties under the Act. Such breaches could also result in administrative consequences for the individuals or agencies involved, potentially affecting their financial standing and credibility within the government sector. It is essential for the agencies involved to adhere strictly to the Direction to avoid any legal or financial repercussions.