Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 33 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Commonwealth Parliament to address the need for improved financial management practices across Commonwealth entities. The Act was introduced to provide a framework that ensures accountability, transparency, and efficiency in the management of Commonwealth financial resources. In this context, the 2002 legislative instrument under section 32 of the Act pertains to the direction for the transfer of specific funds from one agency to another. This particular direction, issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit in the Department of Finance and Administration, facilitates the reallocation of non-lapsing departmental appropriations from the Department of Industry, Tourism and Resources to the Department of Communications, Information Technology and the Arts. The policy objective behind such transfers is to ensure that financial resources are allocated in alignment with the current strategic priorities and operational needs of the Commonwealth.

Scope and Application

The Direction issued under Section 32 of the Financial Management and Accountability Act 1997, signed by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit, Department of Finance and Administration, pertains specifically to the transfer of financial appropriations from one government agency to another. The directive applies to the financial resources identified in column 4 of the attached schedule, which are to be moved from the 'old agency' specified in column 2 to the 'new agency' listed in column 3. In this particular instance, the appropriation item in question is a non-lapsing departmental appropriation from prior years, originally allocated to the Department of Industry, Tourism and Resources, and is being transferred to the Department of Communications, Information Technology and the Arts. The geographic reach of this legislation is national, as it pertains to the financial management practices across Commonwealth entities, thereby impacting the financial reporting and accountability of the involved departments. The Direction does not explicitly state any exclusions or exemptions, and its application is limited to the specific appropriation items listed in the schedule. The Financial Management and Accountability Act 1997, supplemented by this direction, ensures compliance with financial reporting standards across government agencies.

Key Provisions

The main operative sections of the legislative instrument (No. 33 of 2001-2002) detail the transfer of specific moneys from one government agency to another. Under section 32 of the Financial Management and Accountability Act 1997, James Kerwin, the Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, directs the transfer of a non-lapsing departmental appropriation from the Department of Industry, Tourism and Resources to the Department of Communications, Information Technology and the Arts. The amount to be transferred, as listed in column 4 of the attached schedule, is $11,978. This transfer is to take place as per the directive dated 24 June 2002. The obligations and requirements imposed by this Act on the parties involved are primarily administrative and procedural. The directive mandates that the specified funds, which are non-lapsing departmental appropriations from prior years, must be transferred from the Department of Industry, Tourism and Resources to the Department of Communications, Information Technology and the Arts. This transfer must be meticulously recorded and documented to ensure compliance with the Financial Management and Accountability Act 1997. Both agencies must cooperate in the transfer process, ensuring that the financial records are accurately updated to reflect the movement of funds. Failure to comply with the provisions of this directive could result in various civil and administrative consequences. While specific offences and penalties are not detailed in the provided text, breaches of the Financial Management and Accountability Act 1997 could lead to penalties under that Act. Typically, such penalties could include fines, administrative sanctions, or other corrective actions deemed necessary by the relevant authorities to ensure adherence to financial management regulations. The exact penalties would depend on the nature and severity of the breach, but they could potentially include substantial financial penalties and legal action against the responsible parties.