Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to provide a robust framework for the financial management of Commonwealth entities, ensuring accountability and transparency in the use of public funds. The Act was introduced to address the need for improved financial oversight and management practices across government agencies. This legislative instrument, issued under section 32 of the Act, specifically concerns the transfer of funds from one agency to another, reflecting the ongoing re-allocation of resources to better align with the strategic objectives of the government. The policy objective of this direction is to facilitate efficient financial administration by ensuring that funds are appropriately directed to where they are most needed, as determined by the relevant authorities within the Department of Finance and Administration.

Scope and Application

The direction issued under section 32 of the Financial Management and Accountability Act 1997 specifies the transfer of funds from one agency to another, as outlined in the attached schedule. This directive applies to the appropriation items listed in column 1, which detail the specific moneys to be moved. The 'old agency' from which the funds are to be transferred is identified in column 2, while the 'new agency', which will receive the funds, is listed in column 3. The monetary amounts to be transferred are detailed in column 4. The act applies to the entities involved, namely the Department of Finance and Administration as the old agency and the Department of Environment and Heritage as the new agency, concerning the appropriation item listed in the Appropriation Act (No. 1) of 1999/2000. This direction is geographically and jurisdictionally limited to the Commonwealth level, impacting only the specified departments and appropriation items as delineated. No exclusions, exemptions, or thresholds are specified within the direction itself, though the act may be further elaborated or restricted through subordinate instruments.

Key Provisions

The legislation at hand is a direction issued under Section 32 of the Financial Management and Accountability Act 1997 (FMA Act). The direction, issued by Phillip Prior, SES Band 2 from the Budget Coordination Unit in the Department of Finance and Administration, mandates the transfer of specific funds from one agency to another (Section 32). The funds to be transferred are listed in column 4 of the attached schedule, with the appropriation item in column 1, the old agency in column 2, and the new agency in column 3. For instance, the appropriation item 'Departmental Outputs' from the Department of Finance and Administration is to be transferred to the Department of Environment and Heritage, with a transfer amount of $1,719,000 (Schedule, Column 4). The direction imposes specific obligations on the agencies involved. The old agency, in this case, the Department of Finance and Administration, is required to ensure the funds are transferred to the new agency, the Department of Environment and Heritage, by the date specified in the direction, which is 17 November 1999 (Schedule). The new agency, upon receipt of the funds, must account for them in accordance with the FMA Act and ensure they are used for the purposes intended by the appropriation act (FMA Act, Section 25). This includes maintaining proper records and documentation to demonstrate compliance with the direction. Failure to comply with the direction could result in various consequences. Under the FMA Act, non-compliance could be considered a breach of financial management and accountability requirements (FMA Act, Section 11). While the specific penalties for breach are not detailed in the direction itself, the FMA Act provides for both civil and criminal penalties for breaches of its provisions. Civil penalties may include fines up to $22,000 for individuals and $110,000 for bodies corporate, while criminal penalties could result in fines of up to $22,000 for individuals and $110,000 for bodies corporate, as well as potential imprisonment (FMA Act, Section 12). It is important for the agencies involved to adhere strictly to the direction to avoid any potential penalties or legal ramifications.