Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 6 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Commonwealth Parliament to address deficiencies in the financial management and accountability practices of Australian government agencies. This legislation was introduced to ensure that financial resources are managed effectively and transparently, with a clear accountability framework in place. The Act provides the legal basis for financial oversight and management within the public sector, aiming to prevent mismanagement, fraud, and other financial irregularities. The policy objective behind the Act is to ensure that public funds are used efficiently, effectively, and in accordance with the law, thereby promoting public trust in government operations. In line with the Act, this legislative instrument directs the transfer of specific appropriation items from one government agency to another. The direction, issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, specifies the appropriation items, the originating agencies, the receiving agencies, and the amounts involved. This instrument ensures compliance with the financial management and accountability requirements set forth in the Act, facilitating the appropriate allocation and use of public funds across different government entities.

Scope and Application

The Direction under Section 32 of the Financial Management and Accountability Act 1997 applies specifically to the transfer of appropriated funds between government agencies, as stipulated by the Commonwealth Financial Reporting Unit within the Department of Finance and Administration. This legislative instrument pertains to the transfer of specific moneys from one agency to another, as detailed in the attached schedule, thereby affecting the financial management practices of those involved agencies. The geographical reach of this legislation is federal, as it involves the Commonwealth government's financial operations and the transfer of funds between departments and agencies operating under federal jurisdiction. There are no stated exclusions, exemptions, or thresholds within the scope of this particular direction, as it is narrowly tailored to address the specified transfer of funds. The application of this direction is limited to the financial year 2001-2002, as referenced in the appropriation acts mentioned in the document, and is further enforced by the authority vested in the Branch Manager of the Commonwealth Financial Reporting Unit. Any broader application or extension of these provisions would require additional legislative or administrative instruments.

Key Provisions

The main operative sections of this legislative instrument are contained within the directive issued under section 32 of the Financial Management and Accountability Act 1997 (FMA Act). This section mandates that specific appropriations be transferred from one agency to another, as outlined in the attached schedule. In this case, the directive instructs the transfer of funds from the Departmental Outputs of the Department of Finance and Administration to the Public Service and Merit Protection Commission, as detailed in the schedule (section 32). The directive specifies the appropriation items and the amounts to be transferred, ensuring clarity and precision in the financial reallocation process. The obligations imposed by this Act on the parties involved are primarily administrative and procedural. The Commonwealth Financial Reporting Unit, Department of Finance and Administration, must ensure that the transfer of funds is carried out accurately and in accordance with the directive. This includes verifying the details in the schedule, ensuring that the funds are moved from the specified appropriation items of the old agency to the new agency as directed. The new agency, in this case, the Public Service and Merit Protection Commission, is also obligated to accept the transfer and account for the funds appropriately in its financial records. Breaching the provisions of the FMA Act or failing to comply with the directive can lead to significant consequences. While the specific offences and penalties are not detailed within this directive, under the FMA Act, breaches can result in both civil and criminal penalties. For instance, civil penalties may include fines and compensation for any financial loss incurred due to non-compliance. Criminal penalties can include imprisonment, reflecting the seriousness with which the law treats breaches of financial management and accountability. The maximum penalties for such breaches can vary depending on the nature and severity of the offence, with potential fines and imprisonment terms outlined in the FMA Act. The directive ensures that the transfer is compliant with the Act, thereby avoiding any legal repercussions.