Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 34 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997, enacted by the Commonwealth Parliament, was introduced to ensure accountability and transparency in the financial management of public sector entities. This Act provides the legal framework for the proper use of public funds, with a particular focus on financial reporting and accountability measures. The legislation aims to uphold high standards of financial management across the public sector, ensuring that public money is used efficiently and effectively. The direction under section 32 of this Act facilitates the transfer of specified funds from one agency to another, maintaining fiscal integrity and supporting the reallocation of resources in line with policy objectives and operational requirements. In this case, the direction issued by James Kerwin, Branch Manager, Commonwealth Financial Reporting Unit, Department of Finance and Administration, specifies the transfer of a non-lapsing departmental appropriation from the Department of Environment and Heritage to the National Oceans Office, reflecting the realignment of financial resources to support the priorities of the new agency.

Scope and Application

The Financial Management and Accountability Act 1997, as evidenced by the legislative instrument F2007B00966, pertains to the financial management practices within the Commonwealth of Australia, particularly in relation to the reallocation of specific funds between designated agencies. This direction, issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit in the Department of Finance and Administration, concerns the transfer of non-lapsing departmental appropriation funds from the Department of Environment and Heritage to the National Oceans Office. The directive specifies the appropriation item, the originating and receiving agencies, and the exact monetary amount involved in the transfer. This particular instrument affects the financial administration and accountability of the Commonwealth by reassigning budgetary allocations to better align with the operational needs of the National Oceans Office. The jurisdictional reach of this Act is inherently national, impacting financial management across the Commonwealth. The Act does not explicitly state exclusions or exemptions within this legislative instrument but operates within the broader framework of the Financial Management and Accountability Act 1997. The scope of this legislation extends to ensuring that funds are appropriately managed and reallocated according to the financial needs and priorities of the Commonwealth. Additionally, the Act allows for the extension and restriction of its application through subordinate instruments, which may further detail the conditions and processes for such financial transfers.

Key Provisions

The operative sections of this legislative instrument primarily involve the direction given under section 32 of the Financial Management and Accountability Act 1997 (section 1). This section mandates the transfer of specific funds from one government agency to another. Specifically, the direction issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit, Department of Finance and Administration, requires the transfer of a non-lapsing departmental appropriation from the Department of Environment and Heritage to the National Oceans Office, as outlined in the attached schedule (section 1). The appropriation item in question is valued at $12,498,000. The obligations imposed by this legislative instrument on the involved parties are primarily administrative and financial in nature. The Department of Environment and Heritage must ensure the accurate calculation and availability of the funds specified for transfer. Once the direction has been received and acknowledged, the Department of Environment and Heritage must facilitate the transfer of the specified funds to the National Oceans Office within the timeframe stipulated by the direction (section 1). Similarly, the National Oceans Office must be prepared to receive and account for the incoming funds according to the provisions of the Financial Management and Accountability Act 1997. In terms of potential consequences for non-compliance with this legislative instrument, the Financial Management and Accountability Act 1997 provides for both civil and criminal penalties. For civil breaches, the Act may impose penalties including fines and other sanctions as deemed appropriate by the court. Criminal penalties may also be applicable for more severe breaches, including imprisonment. The specific penalties are not detailed in this legislative instrument but would be determined based on the severity and nature of the breach in accordance with the relevant sections of the Act. The Act empowers relevant authorities to investigate and prosecute breaches, ensuring adherence to the financial management requirements outlined within the legislation.