Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 4 of 2000-2001)

Overview

The Financial Management and Accountability Act 1997 was enacted to ensure that public money is managed in a financially sustainable manner and to provide accountability for financial management within the Commonwealth. This legislation was introduced to address the need for a cohesive framework governing the financial practices and responsibilities of Commonwealth entities, ensuring transparency and adherence to financial policies and procedures. Enacted by the Parliament of Australia, the Act aims to achieve sound financial management practices across government departments and agencies. This legislative instrument, which is a direction under section 32 of the Act, illustrates the practical application of the legislation by authorising the transfer of specific appropriations from one agency to another, thereby facilitating efficient financial management and reallocation of resources as necessary.

Scope and Application

The legislative instrument F2007B00803, issued under section 32 of the Financial Management and Accountability Act 1997, pertains specifically to the transfer of funds from one agency to another within the Commonwealth public sector. The instrument is issued by Phillip Prior, a designated official within the Budget Coordination Unit of the Department of Finance and Administration, and is dated 20 October 2000. It mandates the transfer of specified appropriations from the 'old agency' to the 'new agency' as detailed in the attached schedule. The instrument applies to the appropriation items listed, with the Departmental Outputs from the Attorney General’s Department being transferred to the Administrative Appeals Tribunal, for an amount of $7,880,000. This direction applies to the appropriation under the Appropriation Act (No. 1) 2000-2001. The legislation does not explicitly state any exclusions, exemptions, or thresholds beyond the specifics of the transfer listed in the schedule, and its reach is confined to the Commonwealth government's financial management. The instrument extends its application through the detailed schedule that specifies the appropriation items, agencies, and amounts involved in the transfer.

Key Provisions

The direction issued under section 32 of the Financial Management and Accountability Act 1997 (the Act) outlines the specific appropriation items that are to be transferred from one agency to another. According to the attached schedule, the appropriation item from the Appropriation Act (No. 1) 2000-2001, specifically $7,880,000, is to be moved from the Departmental Outputs of the Attorney General’s Department to the Administrative Appeals Tribunal. This transfer is effective as of the date of the direction, 20 October 2000, and is documented as Direction No. 4 of 2000-2001. The Act imposes certain obligations on the agencies involved in this transfer. The 'old agency', in this case the Attorney General’s Department, must ensure that the specified appropriation item is accurately calculated and documented for transfer. The 'new agency', the Administrative Appeals Tribunal, must be prepared to receive and account for the transferred funds in accordance with the Act. Both agencies are required to maintain proper records of the transfer and ensure compliance with any relevant financial regulations and guidelines. Failure to comply with the requirements of this direction may result in various consequences. Under the Act, breaches may be subject to financial penalties, which could include the return of the funds to the original appropriation or a deduction from future appropriations. Additionally, any failure to accurately account for the transferred funds could lead to disciplinary action against the responsible officers within the agencies. The severity of penalties would depend on the nature and extent of the breach, but they could potentially include both civil and criminal liabilities, depending on whether the breach was deliberate or due to negligence.