Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 4 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted to ensure that the Commonwealth's financial management practices are of the highest standard and to enhance the accountability of the public sector. This Act was introduced to address the need for a comprehensive framework that governs the management of public funds, ensuring transparency, efficiency, and effectiveness in the use of public resources. The enacting body for this Act was the Commonwealth Parliament, reflecting the national scope and importance of robust financial management in public administration. This legislative instrument, which is a direction under section 32 of the Financial Management and Accountability Act 1997, was issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration. The policy objective of this direction is to facilitate the transfer of specific appropriations between agencies to align with the outcomes-based budget framework. This ensures that financial resources are allocated in a manner that best supports the government's policy objectives and outcomes.

Scope and Application

This legislative instrument operates under the authority of the Financial Management and Accountability Act 1997, with the objective of facilitating the transfer of specific funds between government agencies. The directive applies to the appropriation items listed in the attached schedule, which includes the transfer of funds from the Department of Finance and Administration to the Department of Transport and Regional Services. The specified appropriation items are derived from the Appropriation Act (No 2) 2001-2002, and include both specific payments to the States and Territories and administered capital funds. The transfer of these funds is part of a broader financial management strategy, ensuring that resources are appropriately allocated to support the respective outcomes and departmental functions. The geographic and jurisdictional reach of this directive is within the Commonwealth, governing the financial transactions between these Commonwealth entities. The directive does not specify any exclusions or exemptions, nor does it mention thresholds beyond the specified appropriation amounts. The application of this instrument may be further extended or detailed by subordinate instruments under the authority of the Financial Management and Accountability Act 1997.

Key Provisions

The primary operative section of this legislation is the 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. Specifically, Section 32 authorises James Kerwin, the Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, to issue this direction. The directive specifies the appropriation items, the old agencies, the new agencies, and the amounts to be transferred, as detailed in the attached schedule (section 32). For instance, the appropriation from the Appropriation Act (No 2) 2001-2002, amounting to $63,722,801, is to be transferred from the Department of Finance and Administration to the Department of Transport and Regional Services. The obligations imposed by this Act primarily concern the financial reporting and accountability of the agencies involved. The 'old agency' is required to transfer the specified funds to the 'new agency' as per the direction issued. This transfer must be accurately recorded and reported in the financial statements of both agencies. Furthermore, the old agency must ensure that the transfer is completed within the prescribed timeframe to maintain compliance with financial management standards. The new agency, upon receipt of the funds, is obligated to utilise the transferred moneys for the purposes specified in the appropriation act. Breaches of the obligations outlined in this Act may lead to civil or criminal consequences. While specific offences are not detailed in the text, penalties for non-compliance with the Financial Management and Accountability Act 1997 can include fines and other civil sanctions. Additionally, if the breach involves criminal conduct, such as fraud or misappropriation of funds, the individuals involved may face criminal charges. The maximum penalties for such offences can vary significantly, depending on the severity and circumstances of the breach. In the case of serious financial misconduct, the penalties can include substantial fines and imprisonment.