Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 7 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to ensure that public moneys are managed effectively, efficiently and economically, and to provide for the accountability of the Commonwealth and its agencies. The Act was introduced to address the need for a cohesive framework governing the financial management and accountability of Commonwealth entities. Enacted by the Parliament of Australia, the FMA Act aims to ensure transparency, integrity, and efficiency in the use of public funds. This legislative instrument under section 32 of the FMA Act authorises the transfer of specified appropriations from one agency to another, in this instance from the Departmental Outputs Outcome 2 of the Department of Finance and Administration to the Department of Transport and Regional Services, reflecting the policy objective of aligning financial resources with strategic outcomes. The direction issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit, Department of Finance and Administration, on 11 December 2001, transfers $484,000 from the Departmental Outputs Outcome 2 of the Department of Finance and Administration to the Department of Transport and Regional Services. This transfer is in accordance with the appropriation listed in the Appropriation Act (No. 1) 2001-2002, ensuring that funds are appropriately allocated to support the intended outcomes and objectives of the respective agencies.

Scope and Application

This legislative instrument, F2007B00901, under the Financial Management and Accountability Act 1997, pertains to the transfer of specific appropriation funds from one government agency to another, as directed by James Kerwin, the Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration. The directive applies to the reallocation of funds listed in column 4 of the attached schedule, which relates to appropriation items under the Appropriation Act (No. 1) 2001-2002 for departmental outputs under Outcome 1 and Outcome 2. The old agency from which funds are being transferred is the Departmental Outputs, while the new agency is the Department of Transport and Regional Services, with a specific transfer amount of $484,000. This transfer is geographically and jurisdictionally bound by the Commonwealth's authority, and it does not specify any exclusions, exemptions, or thresholds within the scope of this directive. The application of this Act may be extended or restricted through subordinate instruments, which could further detail the terms and conditions of the fund transfers.

Key Provisions

The key operative sections of this legislative instrument, pursuant to section 32 of the Financial Management and Accountability Act 1997, involve the transfer of specific moneys from one government agency to another. The primary directive is contained in section 32, which empowers the Branch Manager of the Commonwealth Financial Reporting Unit, in this case James Kerwin, to transfer funds from one agency to another as outlined in the attached schedule. This schedule lists the appropriation items, the old agency, the new agency, and the amounts to be transferred. For example, under Appropriation Act (No. 1) 2001-2002, the item 'Departmental Outputs Outcome 1' is to be moved from the Departmental Outputs of the Department of Finance and Administration to Outcome 2 of the Department of Transport and Regional Services, with a transfer amount of $484,000. The obligations imposed on the parties governed by this Act include the duty of the Branch Manager to ensure that the transfers are made accurately and in accordance with the specified schedule. This entails meticulous record-keeping and verification of the amounts being transferred to maintain financial accountability and integrity. Both the old and new agencies must cooperate in facilitating these transfers, ensuring that they comply with the directives set out in the legislative instrument. They must also ensure that any financial records and reports accurately reflect these changes post-transfer. Any breach of the obligations set out in the Act can result in serious consequences. Although the specific offences and penalties are not detailed within the text provided, under the Financial Management and Accountability Act 1997, there are typically strict penalties for non-compliance, including fines and potential criminal charges. These penalties may vary depending on the severity of the breach and could be subject to further elaboration in the Act or related legislative instruments. The maximum penalties could include substantial financial penalties, imprisonment, or both, reflecting the importance of adhering to financial management regulations.