Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 6 of 2003-2004)

Overview

The Financial Management and Accountability Act 1997 was enacted to establish a framework for the sound and accountable management of public funds in Australia. This legislation was introduced to address the need for improved financial management practices and accountability within the Commonwealth government, ensuring that public resources are utilised effectively and efficiently. The Act provides a legislative basis for the development and enforcement of financial management policies and procedures across all government agencies. The enacting body for this legislation is the Commonwealth Parliament, and its policy objective is to enhance the integrity, transparency, and accountability of financial management within the government sector. The attached legislative instrument is a direction issued under section 32 of the Act, specifying the transfer of specific appropriation funds from one agency to another, as authorised by the Act to facilitate the proper allocation and use of government resources.

Scope and Application

The Legislative Instrument F2007B00860, issued under section 32 of the Financial Management and Accountability Act 1997, pertains to the transfer of appropriations between government agencies within Australia. This specific direction applies to the financial management of appropriations listed under the Appropriation Act (No. 1) 2003-2004, detailing a transfer of $3,800,000 from the Departmental Outputs of the Department of Industry, Tourism and Resources to the Departmental Outputs of the Department of the Treasury. The Act applies directly to the two named departments and the appropriations listed, with the transfer effectuated by the Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration. The geographic and jurisdictional reach of this legislation is confined to Commonwealth government entities, specifically targeting the financial management practices within the federal structure of Australian government departments. This directive does not extend to state or territory entities, maintaining its application strictly within the Commonwealth framework. There are no stated exclusions or exemptions within the scope of this particular legislative instrument, but it should be noted that broader application and exceptions may be defined in subordinate instruments or other sections of the Act.

Key Provisions

The main operative sections of this Direction require the transfer of specified funds from the 'old agency' to the 'new agency', as listed in the attached schedule. Specifically, section 32 of the Financial Management and Accountability Act 1997 empowers the Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, to issue such a direction. This authority is exercised by Jim Kerwin, who, in this instance, directs that the appropriation item listed under the Appropriation Act (No. 1) 2003-2004 for Departmental Outputs be moved from the Department of the Treasury to the Department of Industry, Tourism and Resources. The amount to be transferred is $3,800,000. The obligations and requirements imposed by this Act on the parties involved are straightforward. The 'old agency', in this case, the Department of the Treasury, must ensure that the specified funds are transferred to the 'new agency', the Department of Industry, Tourism and Resources, in accordance with the direction. The Department of Industry, Tourism and Resources, on the other hand, must be prepared to receive the funds as directed. The direction is effective immediately upon issuance and requires compliance without delay. The Department of Finance and Administration, through its Division Manager, is responsible for ensuring the accuracy and legality of the transfer. The legislation does not explicitly state any offences, penalties, or civil/criminal consequences for breach. However, given the context of the Financial Management and Accountability Act 1997, failure to comply with such a direction could potentially lead to serious administrative and legal repercussions. While the specific penalties are not detailed in this legislative instrument, breaches of the Financial Management and Accountability Act 1997 generally could result in significant fines, legal action, or other disciplinary measures against the responsible parties. The seriousness of the consequences underscores the importance of adhering to the directives issued under this Act.