Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to ensure effective management of public money, providing a framework for accountability, transparency, and efficiency in the use of public resources. The Act was introduced to address the need for robust financial governance and to prevent mismanagement and misuse of public funds. In 1999, under the authority of this Act, Phillip Prior, from the Budget Coordination Unit of the Department of Finance and Administration, issued a direction under section 32, specifying the transfer of certain funds from the Treasury to the Australian Office of Financial Management. The policy objective of this transfer was to streamline financial management processes and improve the allocation of resources, thereby enhancing accountability and efficiency in the administration of public finances.

Scope and Application

The direction under section 32 of the Financial Management and Accountability Act 1997 pertains to the re-allocation of specific financial appropriations from one agency to another within the Commonwealth. The authority to issue this direction is exercised by Phillip Prior, a senior executive serving in the Budget Coordination Unit of the Department of Finance and Administration. This direction applies to the appropriation items listed in the attached schedule, transferring funds from the Treasury to the Australian Office of Financial Management. The entities involved in this transaction are the Treasury, acting as the 'old agency', and the Australian Office of Financial Management, acting as the 'new agency'. The direction includes transfers of funds under various appropriation categories such as Administered Capital, Special Appropriations, and Departmental Loans, with specific dollar amounts detailed in the schedule. The geographic and jurisdictional reach of this direction is limited to Commonwealth agencies, and there are no stated exclusions or exemptions within the scope of this direction. The application of this direction may be extended or restricted through subordinate instruments issued under the authority of the Financial Management and Accountability Act 1997.

Key Provisions

The operative sections of this legislative instrument direct the transfer of specified moneys from one agency to another. Under section 32 of the Financial Management and Accountability Act 1997, Phillip Prior, an SES Band 2 officer from the Budget Coordination Unit of the Department of Finance and Administration, issues this direction. The document lists the appropriation items, the old and new agencies, and the amounts to be transferred in the accompanying schedule. For example, section 32 directs that $80,195,000 in administered capital under Bill 2 be transferred from the Treasury to the Australian Office of Financial Management. The obligations and requirements imposed by this legislation are primarily concerned with ensuring the proper and authorised transfer of funds between government agencies. The directive specifies the appropriation items and the respective amounts that need to be moved from the old agency to the new one. The act mandates that these transfers must be carried out in accordance with the provisions of the Financial Management and Accountability Act 1997, ensuring compliance with financial management standards and procedures. The act also requires the documentation of these transfers to maintain transparency and accountability in financial operations. There are no explicit offences, penalties, or civil or criminal consequences mentioned in the text of this legislative instrument itself. However, failure to comply with the Financial Management and Accountability Act 1997 could result in severe consequences under the act. The act provides for potential civil and criminal penalties for breaches, including fines and imprisonment, depending on the nature and severity of the violation. The specific penalties would be determined by the courts based on the provisions of the act and the circumstances of the breach. It is crucial for the agencies involved to adhere to the directive to avoid any legal repercussions.