Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for the management and accountability of public finances in Australia. The Act was introduced to address the need for robust financial management practices and ensure transparency and accountability in the use of public funds. This legislative instrument, a direction issued under section 32 of the Act, is a practical application of the legislative intent, facilitating the transfer of funds between agencies to better align with current service delivery needs. Phillip Prior, from the Budget Coordination Unit within the Department of Finance and Administration, issues this direction to effect the reallocation of specified appropriations from the Department of Family and Community Services to the Department of Health and Aged Care, as per the attached schedule. The policy objective of this direction is to ensure that financial resources are effectively and efficiently utilised to support the intended outcomes and outputs of the respective departments.

Scope and Application

This legislative instrument, F2007B00805, operates under the authority granted by section 32 of the Financial Management and Accountability Act 1997. It specifically directs the transfer of funds from one agency to another as detailed in the attached schedule. The act applies to the entities specified, which in this case are the Department of Family and Community Services transferring funds to the Department of Health and Aged Care. The instrument concerns appropriations listed in the Appropriation Bill (No 1) 2000-2001, detailing the specific appropriation items and the amounts to be moved from the former agency to the latter. The geographic and jurisdictional reach of this directive is confined to the Commonwealth level, as it concerns the allocation of federal funds between government departments. There are no exclusions, exemptions, or specific thresholds mentioned in the text, and the instrument itself does not extend or restrict its application through subordinate instruments, focusing solely on the specified fund transfers.

Key Provisions

The key provisions of this legislative instrument are found in section 32 of the Financial Management and Accountability Act 1997, which allows for the transfer of funds between different agencies. In this particular case (paragraph 1), the document directs that specific funds, as listed in column 4 of the attached schedule, are to be transferred from the 'old agency' in column 2 to the 'new agency' in column 3. This transfer is detailed in columns 1 to 4, with the appropriation item, old agency, new agency, and the amount of money to be transferred clearly stated. For example, $100,000 from the Department of Family and Community Services is to be transferred to the Department of Health and Aged Care. Under this Act, the obligations and requirements imposed on the parties involved are straightforward (paragraph 2). The specified funds must be transferred as directed by the document, with the details of the transfer listed in the attached schedule. The entities involved must ensure that the transfer of funds is conducted in accordance with the instructions provided, and they must keep accurate records of the transaction to demonstrate compliance with the legislation. This includes ensuring that the correct appropriation item is used and that the funds are transferred to the correct agency as specified. In terms of potential offences, penalties, or consequences for breach (paragraph 3), the legislation does not explicitly outline specific penalties or consequences for non-compliance within the document itself. However, under the Financial Management and Accountability Act 1997, there are likely to be significant civil and/or criminal consequences for any failure to comply with the requirements of the Act. These could include fines, legal action, or other penalties as deemed appropriate by the relevant authorities. The exact penalties would depend on the severity of the breach and the specific circumstances surrounding it, but it is clear that non-compliance could have serious ramifications for the entities involved.