Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 5 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 was enacted to enhance financial management and accountability within the Commonwealth public sector. This legislation provides a framework for the efficient, effective and economic use of public funds. The Act was introduced to address the need for improved financial governance and to ensure that public moneys are used in a responsible and transparent manner. Enacted by the Australian Parliament, the Act aims to promote sound financial management practices across all Commonwealth entities. This legislative instrument, issued by Brett Kaufmann, Acting Division Manager of the Financial Reporting and Cash Management Division in the Department of Finance and Administration, provides a direction under section 32 of the Act for the transfer of specific funds from one agency to another. The policy objective of this direction is to ensure that financial resources are appropriately allocated to support the activities and responsibilities of the relevant agencies.

Scope and Application

The Financial Management and Accountability Act 1997, under which this direction operates, applies to all Commonwealth authorities and agencies, including the Department of Health and Ageing and the National Blood Authority, ensuring proper management and accountability of public funds. This legislative instrument specifically pertains to the transfer of non-lapsing appropriations from the Department of Health and Ageing to the National Blood Authority, an amount of $228,929. This direction is limited to the financial transfer as outlined in the schedule, and it operates within the jurisdictional reach of the Commonwealth of Australia. There are no stated exclusions or exemptions within the scope of this specific direction, though the Act itself may contain broader provisions for such matters. The application of this direction is further governed by any subordinate instruments issued under the authority of the Act, which may detail additional procedures or requirements for such transfers.

Key Provisions

The legislative instrument in question is a direction issued under section 32 of the Financial Management and Accountability Act 1997 (FMA Act). The main operative sections involved here are sections 32 and 33 of the FMA Act. Section 32 allows the Acting Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration to issue a direction for the transfer of specified moneys from one agency to another. The direction, signed by Brett Kaufmann on 20 August 2004, mandates the transfer of a non-lapsing appropriation from prior years for Departmental Outputs from the Department of Health and Ageing to the National Blood Authority. The amount to be transferred is $228,929. The obligations and requirements imposed by this Act include the necessity for clear identification and documentation of the transfer of funds. The Acting Division Manager must ensure that the transfer is accurately represented in the financial records of both the 'old agency' and the 'new agency'. The direction must be issued in accordance with the relevant provisions of the FMA Act, and it must be accompanied by a detailed schedule that specifies the appropriation items, the old and new agencies involved, and the amount of money to be transferred. Additionally, the direction must be dated and signed by the authorised officer, which is Brett Kaufmann in this instance. In terms of potential breaches and consequences, the FMA Act outlines various offences and penalties. For example, if a transfer of funds is not conducted in accordance with the Act, it could be considered an offence under section 46, which pertains to misuse of public money. The penalties for such an offence can be severe, potentially including fines and imprisonment. Specifically, under section 46(1), a person can be fined up to 10,000 penalty units or imprisoned for up to five years, or both. Additionally, civil consequences could include the requirement to repay the misappropriated funds, along with any associated interest or penalties. The precise penalties would depend on the circumstances of the breach and any relevant case law or regulatory guidelines.