Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 6 of 2002-2003)

Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, was introduced to enhance the accountability and efficiency of financial management across the Commonwealth. The Act aims to ensure that public funds are used effectively and responsibly, providing a framework for financial reporting, accountability, and performance monitoring. The legislation seeks to address the problem of ensuring transparent and accountable financial management practices across all Commonwealth entities. This legislative instrument, issued under section 32 of the Act, is a direction to transfer specific appropriations from one agency to another to align with the changing structure and responsibilities of government departments. In this instance, the direction, issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit in the Department of Finance and Administration, mandates the transfer of funds from the 'old agency' to the 'new agency' as listed in the schedule. This action supports the policy objective of the Act by ensuring that financial resources are appropriately allocated to the entities responsible for delivering government outcomes.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) applies to the appropriation of funds within the Commonwealth of Australia, particularly in relation to the transfer of specified funds from one agency to another as directed under the authority of the Act. This legislative instrument, issued by the Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, details the transfer of funds between agencies, as outlined in the attached schedule. Each appropriation item listed in the schedule is specified with the old agency, new agency, and the exact amount to be transferred. The authority to transfer these funds derives from section 32 of the FMA Act, ensuring that such transfers are in compliance with the broader requirements of financial management and accountability within the Australian government. The application of this directive is limited to the funds specified in the attached schedule and does not extend beyond the agencies and appropriation items listed. The scope of this directive is geographically limited to the Commonwealth of Australia, and it applies to the entities listed in the attached schedule, which include government departments such as the Department of Defence and the Attorney-General’s Department. There are no stated exclusions, exemptions, or thresholds in this particular legislative instrument beyond the scope defined by the items in the schedule. The directive does not extend beyond the specific appropriation items and agencies listed, and no subordinate instruments are referenced as extending or restricting the application of this direction.

Key Provisions

The key operative sections of the legislative instrument (No. 6 of 2002-2003) involve the transfer of moneys from certain specified appropriation items. Section 32 of the Financial Management and Accountability Act 1997 provides the authority for this transfer, which is to be carried out by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit, Department of Finance and Administration. The transfer is detailed in a schedule attached to the instrument, listing the appropriation items in column 1, the 'old agency' from which the funds are to be moved in column 2, the 'new agency' to which they are to be transferred in column 3, and the amount of moneys to be transferred in column 4. The obligations and requirements imposed by this Act include the precise and orderly transfer of funds as specified in the attached schedule. James Kerwin, as the Branch Manager, is responsible for ensuring that the funds are accurately moved from the old agencies to the new agencies as per the amounts listed. This transfer is to be conducted in accordance with the appropriation acts and the financial management directives set forth in the Financial Management and Accountability Act 1997. The act requires meticulous record-keeping and adherence to financial protocols to maintain the integrity of the financial management processes within the Commonwealth. The legislative instrument also outlines the potential consequences of non-compliance with the provisions set forth in the Financial Management and Accountability Act 1997. Any breach of the Act or failure to comply with the specified transfer of funds could result in legal and administrative repercussions. While the specific penalties are not detailed in the instrument, breaches of financial management acts generally carry significant penalties. These could include fines, administrative sanctions, or even criminal charges in severe cases, depending on the nature and extent of the breach. The maximum penalties for such offences would be determined by the relevant courts and authorities based on the particular circumstances of the case. It is crucial for the parties involved to ensure strict adherence to the Act to avoid these potential consequences.