Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 4 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 was enacted to address the need for stringent financial management and accountability within the Australian government. This Act provides the legislative framework that ensures the proper stewardship of public funds, enhancing transparency, efficiency, and effectiveness in the allocation and utilisation of government resources. The Act was enacted by the Australian Parliament and aims to uphold the principles of responsible financial management. The legislative instrument F2007B00710 under this Act, issued by Brett Kaufmann, Acting Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, serves to direct the transfer of specific appropriations from one agency to another, ensuring compliance with the financial management policies and objectives outlined in the Act. This particular direction facilitates the reallocation of funds to better align with the strategic objectives of the government, thereby enhancing the overall accountability and management of public finances.

Scope and Application

The Direction issued under Section 32 of the Financial Management and Accountability Act 1997 concerns the transfer of specified moneys between government agencies, as outlined in the attached schedule. This instrument applies to the appropriation items listed in column 1, transferring funds from the 'old agency' in column 2 to the 'new agency' in column 3, with the financial amounts detailed in column 4. The act involves the Australian Government Information Management Office and the Department of Communications, Information Technology and the Arts, specifically targeting the appropriation acts for the financial years 2003-2004 and 2004-2005, as well as non-lapsing appropriations from prior years. This legislation is issued under Commonwealth authority, thus its jurisdiction and application are confined within the national governance framework of Australia. There are no stated exclusions, exemptions, or thresholds within this specific direction, but the act itself provides a mechanism for the transfer of funds, potentially extending its application through subordinate instruments.

Key Provisions

The key operative sections of this legislative instrument are outlined in the direction provided by Brett Kaufmann, the Acting Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, under section 32 of the Financial Management and Accountability Act 1997. This direction mandates the transfer of specified moneys from one agency to another, as listed in the attached schedule. Column 1 of the schedule identifies the appropriation items, column 2 lists the 'old agency' from which the funds are to be transferred, column 3 specifies the 'new agency' to which the funds are to be transferred, and column 4 indicates the monetary amounts involved in each transfer (section 32). The obligations and requirements imposed by this Act on the relevant parties include the necessity for the 'old agency' to disburse the specified funds to the 'new agency' as directed. This directive applies to the Australian Government Information Management Office, which must transfer funds to the Department of Communications, Information Technology and the Arts. The obligation also extends to ensuring accurate and timely record-keeping of these transactions, ensuring that all financial transfers comply with the provisions of the Financial Management and Accountability Act 1997. Furthermore, any adjustments or re-appropriations of funds must be documented and justified in accordance with existing financial regulations. The legislative instrument does not explicitly state any offences, penalties, or civil/criminal consequences for breaches of the directive. However, any failure to comply with the Financial Management and Accountability Act 1997 or the direction issued under section 32 could potentially lead to administrative or legal consequences. Such breaches might result in financial discrepancies, audits, or investigations by relevant authorities, and could ultimately lead to disciplinary actions against the responsible parties. While the maximum penalties are not specified within this particular directive, the overarching Act may provide for penalties under its broader provisions for non-compliance with financial management directives.