Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 7 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 was enacted to ensure that the Commonwealth's financial resources are managed efficiently, effectively, and economically. This legislation was introduced to address the need for clear financial accountability and transparency within the government, aiming to uphold public trust in the use of public funds. Enacted by the Parliament of Australia, the Act provides the legal framework for managing public money and serves to enhance the effectiveness of financial management across government agencies. This legislative instrument, a direction under section 32 of the Act, specifically mandates the transfer of funds from the Department of Immigration and Multicultural and Indigenous Affairs to the Department of Employment and Workplace Relations. The direction, issued by Anne Hazell, Division Manager of Financial Reporting and Cash Management Division, Department of Finance and Administration, details the appropriation items, old and new agencies involved, and the amounts to be transferred, ensuring compliance with the financial management policies established by the Act. The policy objective is to facilitate the reallocation of financial resources in a manner that aligns with the government's strategic priorities and operational requirements.

Scope and Application

The direction under section 32 of the Financial Management and Accountability Act 1997 pertains to the transfer of specified funds from one agency to another within the Commonwealth government. The directive applies to particular appropriation items as outlined in the schedule, which includes the transfer of administered expenses and assets and liabilities from the Department of Immigration and Multicultural and Indigenous Affairs to the Department of Employment and Workplace Relations. The geographic and jurisdictional reach of this legislation is confined to the Commonwealth level, impacting specific government departments involved in the transfer. The direction specifies the exact amounts to be transferred for each appropriation item, ensuring clarity and accountability in financial management across the affected departments. This legislative instrument does not explicitly mention any exclusions, exemptions, or thresholds, but its application is limited to the specific appropriation items listed in the schedule. The directive does not extend or restrict application through subordinate instruments, but it operates within the framework established by the Financial Management and Accountability Act 1997.

Key Provisions

The Direction under Section 32 of the Financial Management and Accountability Act 1997 (sections 32(1) and (2)) outlines a transfer of funds from one agency to another, as specified in the schedule attached to the document. This transfer pertains to appropriation items from the financial years 2004-2005. Specifically, the appropriation for administered expenses under Outcome 5 from the Department of Immigration and Multicultural and Indigenous Affairs is to be moved to the Department of Employment and Workplace Relations (section 32(3)). Additionally, administered assets and liabilities under the same financial years, along with equity injections from prior years, are also directed to be transferred from the Department of Immigration and Multicultural and Indigenous Affairs to the Department of Employment and Workplace Relations (section 32(4)). The obligations imposed by this Direction include ensuring that the specified funds are accurately transferred from the 'old agency' to the 'new agency' as listed in the schedule. The 'old agency' is required to facilitate the transfer of the designated appropriation items, including administered expenses, assets, liabilities, and prior year equity injections, to the 'new agency' by the date stipulated in the Direction. This involves meticulous accounting and record-keeping to ensure compliance with financial management standards and accurate reporting of the financial changes between the agencies (section 32(5)). Failure to comply with the requirements of this Direction could potentially lead to civil or criminal consequences, depending on the nature and severity of the breach. Under the Financial Management and Accountability Act 1997, breaches of the Act or its legislative instruments could result in penalties, including fines or imprisonment for individuals, and financial penalties for the agency involved. However, specific penalties are not detailed within this Direction but would be governed by the relevant sections of the Act and other applicable laws (section 32(6)). The maximum penalties would depend on the specific provisions of the Act that are contravened.