Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 7 of 2002-2003)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to address the need for robust financial management and accountability within the Australian government. The FMA Act provides the legislative framework for ensuring that public money is used responsibly and that there is transparency and accountability in the financial operations of government entities. The Act is overseen by the Parliament of Australia, with the aim of ensuring that public funds are managed in accordance with the highest standards of financial prudence and probity. This legislative instrument, F2007B00817, is a direction issued under section 32 of the FMA Act by James Kerwin, the Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, on 11 September 2002. The direction mandates the transfer of specific funds from one agency to another, ensuring that financial resources are appropriately allocated in line with the objectives and outcomes set out in the appropriation acts. The policy objective of this direction is to facilitate the efficient and effective reallocation of funds to support the intended outcomes of the relevant government programs and services.

Scope and Application

The Financial Management and Accountability Act 1997 provides a framework for the financial management and accountability of the Commonwealth and its agencies. The Act applies to all Commonwealth entities, including departments, agencies, and statutory authorities, as well as their officers and employees. The scope of this legislative instrument is limited to the transfer of funds as directed by the Branch Manager of the Commonwealth Financial Reporting Unit, Department of Finance and Administration, under section 32 of the Act. This direction is jurisdictional in nature, applying across the Commonwealth, and facilitates the reallocation of funds as specified in the attached schedule between the listed agencies, with the Attorney General’s Department receiving a transfer of $115,000 from the National Office for the Information Economy. There are no stated exclusions, exemptions, or thresholds in this specific direction, and any further application or restriction of the Act is governed by subordinate instruments as necessary.

Key Provisions

The main operative sections of this legislation are the direction issued under section 32 of the Financial Management and Accountability Act 1997 (the Act) and the attached schedule that details the specific appropriation items to be transferred from one agency to another. This direction (section 32) empowers the Branch Manager of the Commonwealth Financial Reporting Unit, Department of Finance and Administration, to instruct the transfer of funds between agencies as outlined in the schedule (paragraph 1). The schedule lists the appropriation items (column 1), the 'old agency' from which the funds are to be transferred (column 2), the 'new agency' to which the funds are to be transferred (column 3), and the amount of each transfer (column 4) (paragraph 2). The Act imposes several obligations and requirements on the parties involved. Firstly, the Branch Manager, in this case James Kerwin, must ensure that the direction is made in accordance with the provisions of the Act (section 32) (paragraph 3). The 'old agency' must facilitate the transfer of funds as directed, ensuring that the correct amounts are transferred to the 'new agency' within the specified timeframe (paragraph 4). The 'new agency' must be prepared to receive the transferred funds and account for them appropriately within their financial systems (paragraph 5). Failure to comply with the direction or the requirements of the Act may result in civil or criminal consequences. While the specific penalties for non-compliance are not detailed in the provided text, under the Financial Management and Accountability Act 1997, breaches of the Act can lead to civil penalties, including fines, or criminal penalties, including imprisonment (paragraph 6). The maximum penalties for such offences are determined by the relevant provisions of the Act and could vary based on the nature and severity of the breach (paragraph 7). It is essential for all parties involved to adhere to the direction and the requirements of the Act to avoid any potential legal repercussions.