Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 5 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997, enacted by the Commonwealth Parliament, was introduced to address the need for effective financial management and accountability within government agencies. The Act provides a framework for ensuring that public funds are used efficiently, economically, effectively, and ethically. The Act empowers the Department of Finance and Administration to manage public moneys and to exercise financial control over government entities. The policy objective of the Act is to enhance the transparency, efficiency, and accountability of financial management across the Commonwealth. The legislative instrument F2007B00898, issued under section 32 of the Act, directs the transfer of specific appropriation funds from one agency to another, reflecting the ongoing management and reallocation of financial resources in accordance with the Act’s requirements. This directive ensures that the financial resources are appropriately directed to achieve the intended outcomes and objectives of the government.

Scope and Application

The Direction under Section 32 of the Financial Management and Accountability Act 1997 applies to the transfer of specific funds from one government agency to another. In this instance, the Direction mandates the transfer of appropriation funds from the 'old agency', identified as the Departmental Outputs for Outcome 1 within the Office of Asset Sales and Commercial Support, to the 'new agency', which is the Department of Finance and Administration. This transfer is governed by the appropriation items listed in the attached schedule of the legislative instrument, with the specific sum of $26,401,734.74 being transferred as outlined in the Appropriation Act (No 1) 2001-2002. The jurisdictional reach of this Direction is limited to the Commonwealth level, impacting the financial management practices within the federal government. The Direction is precise in its application, specifying the entities involved and the exact funds to be transferred, thereby ensuring accountability and compliance with the financial management requirements set out by the Act.

Key Provisions

This legislative instrument (F2007B00898) directs the transfer of specific moneys from one agency to another as per the directive issued by James Kerwin, Branch Manager, Commonwealth Financial Reporting Unit, Department of Finance and Administration under section 32 of the Financial Management and Accountability Act 1997. The directive mandates the transfer of funds listed in column 4 of the attached schedule, which pertain to appropriation items from the 'old agency' listed in column 2 to the 'new agency' listed in column 3. The primary purpose of this transfer is to ensure the appropriate allocation of funds as required by the Act. The obligations and requirements imposed by this legislation primarily involve the accurate and timely transfer of specified funds from one agency to another. The directive is explicit about the appropriation items and the respective agencies involved in the transfer. Specifically, the appropriation item from the Appropriation Act (No 1) 2001-2002, categorised under 'Departmental Outputs Outcome 2', must be transferred from the old agency, which is the Department of Finance and Administration, to the new agency. The exact amount to be transferred is $26,401,734.74. This transfer must adhere to the provisions set out in the Financial Management and Accountability Act 1997, ensuring that financial management practices are transparent and accountable. Failure to comply with the directives outlined in this legislative instrument may result in various consequences. Under the Financial Management and Accountability Act 1997, breaches of the Act's provisions can lead to both civil and criminal penalties. Civil penalties may include fines and other financial repercussions, while criminal penalties may involve imprisonment. The specific penalties for non-compliance are not detailed in this particular legislative instrument, but they are subject to the broader provisions of the Act. The Act aims to uphold the integrity of financial management practices across governmental agencies by ensuring that all transfers of funds are properly authorised and documented.