Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 5 of 2003-2004)

Overview

The Financial Management and Accountability Act 1997 was enacted to ensure that public funds are managed responsibly and transparently across Australian government agencies. This Act was introduced to address the need for robust financial management systems and accountability mechanisms in the public sector, ensuring that government resources are used efficiently and effectively. The Act is overseen by the Parliament of Australia, which established it to provide a framework for the prudent and effective management of public money. The policy objective behind the Act is to enhance the accountability and transparency of financial management within the Commonwealth, thereby safeguarding public funds and promoting fiscal responsibility. This legislative instrument, issued under section 32 of the Act, directs the transfer of specified funds from one agency to another, ensuring compliance with the Act’s requirements for the proper management and allocation of appropriations.

Scope and Application

The Legislative Instrument F2007B00858, which is a direction issued under Section 32 of the Financial Management and Accountability Act 1997, pertains specifically to the transfer of moneys from one government agency to another. The direction is issued by Jim Kerwin, the Division Manager of Financial Reporting and Cash Management Division within the Department of Finance and Administration. The instrument applies to the appropriation items listed in the attached schedule, specifying the transfer of funds from the Australian Greenhouse Office to the Office of Renewable Energy Regulator. This transfer is governed by the Appropriation Act (No. 1) 2003-2004, with the sum of $1,506,000 earmarked for this purpose. The direction is effective from 4 November 2003 and is numbered as No. 5 of 2003-2004. The instrument operates within the Commonwealth jurisdiction, aligning with the overarching framework established by the Financial Management and Accountability Act 1997, without any stated exclusions or exemptions. Any further application or clarification of this direction may be extended through subordinate instruments as necessary.

Key Provisions

Pursuant to section 32 of the Financial Management and Accountability Act 1997, the document issued by Jim Kerwin, Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, directs the transfer of certain appropriations from one agency to another. Specifically, section 32 of the Act allows for the reallocation of funds as outlined in the attached schedule, where column 1 lists the appropriation item, column 2 lists the 'old agency', column 3 lists the 'new agency', and column 4 specifies the dollar amount to be transferred. For instance, the appropriation from the Australian Greenhouse Office under the Appropriation Act (No. 1) 2003-2004 for departmental outputs is to be transferred to the Office of Renewable Energy Regulator in the amount of $1,506,000. The obligations and requirements imposed by this direction are primarily administrative and procedural. The issuing authority, in this case, Jim Kerwin, must ensure that the transfer is carried out in accordance with the provisions of the Financial Management and Accountability Act 1997. This includes maintaining accurate records of the transfer, ensuring that the funds are moved from the old agency's accounts to the new agency's accounts, and ensuring that all financial reporting accurately reflects these changes. The direction also mandates that the new agency must be prepared to receive the funds and account for them appropriately within their financial management systems. Breaching the provisions of the Financial Management and Accountability Act 1997 or failing to comply with the direction issued under section 32 can result in serious consequences. Under section 37 of the Act, any person who knowingly or recklessly makes a false or misleading statement in relation to the management of public moneys can be subject to criminal penalties. Specifically, the maximum penalty for an individual is a fine of up to $33,000 or imprisonment for up to two years, or both. Additionally, if the breach involves a corporation, the maximum penalty can be significantly higher, reaching up to $165,000. These provisions are designed to maintain the integrity of public financial management and to hold accountable those who fail to comply with the legislative requirements.