Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 4 of 2003-2004)

Overview

The Financial Management and Accountability Act 1997 was enacted to establish a robust framework for the financial management and accountability of Commonwealth entities. This Act was introduced to address the need for improved financial oversight and transparency within government agencies, aiming to ensure that public funds are used efficiently, effectively, and in accordance with legislative mandates. The policy objective of the Act is to enhance the quality of financial management practices and reporting across all Commonwealth entities, thereby promoting public accountability and confidence in government operations. Under the authority granted by section 32 of this Act, Jim Kerwin, Division Manager of the Financial Reporting and Cash Management Division within the Department of Finance and Administration, has issued a direction for the transfer of specific appropriations between agencies, as detailed in the attached schedule. This direction ensures that funds are allocated appropriately to reflect the current organisational structure and service delivery responsibilities of the Commonwealth entities involved.

Scope and Application

The direction under section 32 of the Financial Management and Accountability Act 1997 pertains to the transfer of specific appropriation moneys between government agencies as listed in the schedule. This direction applies to the appropriation items detailed in the attached schedule, which includes the transfer of funds from the Attorney-General’s Department to the Department of the Prime Minister and Cabinet as per the Appropriations Act (No. 1) 2003-2004. The act applies to the designated appropriation items and the involved agencies, ensuring that the specified funds are re-allocated as directed. The geographic and jurisdictional reach of this direction is confined to the Commonwealth of Australia, as it is issued under the authority of the Financial Management and Accountability Act 1997, which is a Commonwealth Act. There are no stated exclusions, exemptions, or thresholds within the direction itself, although the act may include provisions for such matters. This direction serves to implement the statutory requirements for financial management and accountability within the Commonwealth government, and it may be further extended or restricted through subordinate instruments as necessary.

Key Provisions

The Direction under Section 32 of the Financial Management and Accountability Act 1997 (the Act) provides explicit instructions for the transfer of specified appropriation moneys from one agency to another. As Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, Jim Kerwin has issued this direction to facilitate the transfer of funds from the 'old agency' to the 'new agency' as detailed in the attached schedule. For instance, appropriation moneys under the Appropriation Act (No. 1) 2003-2004 from the Attorney-General’s Department for 'Departmental Outputs' and 'Administered Expenses Outcome 2' are to be moved to the Department of the Prime Minister and Cabinet (sections 32 and 32.1). The Act imposes certain obligations and requirements on the entities involved in the transfer of funds. The 'old agency' must ensure that the funds are accurately calculated and available for transfer, while the 'new agency' must be prepared to receive the funds and account for them appropriately in their financial records. This transfer is necessary to align the budget allocations with the current operational requirements of the agencies involved, ensuring that financial resources are effectively managed and utilised in accordance with legislative requirements. Failure to comply with the provisions of the Act, including the failure to execute the transfer as directed, may result in serious consequences. While the specific penalties for non-compliance are not detailed in this Direction, breaches of the Financial Management and Accountability Act 1997 can lead to significant civil and criminal penalties. In general, penalties may include fines, imprisonment, or other legal actions as prescribed by the Act, reflecting the importance of adhering to financial management directives to maintain public accountability and integrity in government operations.