Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 5 of 2002-2003)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Commonwealth Parliament to provide a framework for the management of financial resources by Commonwealth entities, ensuring accountability, transparency, and adherence to financial policies and practices. This Act was introduced to address the need for a robust and unified financial management system across various government departments and agencies, thereby enhancing the overall efficiency and effectiveness of public expenditure. The policy objective of the Act is to ensure that financial resources are managed prudently and in accordance with legislative requirements, thereby safeguarding the interests of the public and maintaining the integrity of financial reporting. This legislative instrument, F2007B00815, issued under section 32 of the Financial Management and Accountability Act 1997, directs the transfer of specified funds from the Department of Employment and Workplace Relations to the Department of Industry, Tourism and Resources. This transfer is intended to facilitate the realignment of financial resources to better support departmental outcomes and align with the strategic objectives of the government. The directive was issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, on 20 August 2002.

Scope and Application

The legislative instrument F2007B00815, issued under the Financial Management and Accountability Act 1997, pertains to the transfer of specific moneys from one agency to another within the Commonwealth. This direction is issued by the Branch Manager of the Commonwealth Financial Reporting Unit, Department of Finance and Administration, and is effective as of 20 August 2002. The Act applies to the appropriation items listed in the attached schedule, specifically involving the transfer of funds from the Department of Employment and Workplace Relations to the Department of Industry, Tourism and Resources. This transfer includes a non-lapsing appropriation from prior years, as detailed in the Appropriation Act (No. 1) 2002-2003. The instrument's jurisdictional reach is limited to the Commonwealth level, ensuring that the financial management practices align with the requirements set out by the Financial Management and Accountability Act 1997. There are no exclusions, exemptions, or specific thresholds mentioned in the legislative instrument itself, though it may be subject to further clarification or modification through subordinate instruments.

Key Provisions

The key operative sections of this Direction under section 32 of the Financial Management and Accountability Act 1997 (FMA Act) require the transfer of specific funds from one government agency to another. Section 32 of the FMA Act provides the authority for this Direction, which is issued by James Kerwin, the Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration. The Direction mandates the transfer of a non-lapsing appropriation from the Department of Employment and Workplace Relations to the Department of Industry, Tourism and Resources for the appropriation item listed in the attached schedule. This Direction imposes specific obligations on the agencies involved. The 'old agency', the Department of Employment and Workplace Relations, is required to transfer the specified funds to the 'new agency', the Department of Industry, Tourism and Resources. The Direction outlines the exact amount of the transfer, which is $87,420. The 'new agency' must receive and account for these funds in accordance with the provisions of the Appropriation Act (No. 1) 2002-2003 and the FMA Act. Breach of the provisions of this Direction, or failure to comply with the obligations it imposes, could result in legal and financial consequences. Under the FMA Act, unauthorised or improper use of public money can be considered an offence, with potential civil or criminal penalties. The specific penalties for such breaches are not outlined in this Direction but could include fines or other sanctions as prescribed by law. The FMA Act and related legislation provide the framework within which these consequences would be determined and enforced.