Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 8 of 2001-2002)

Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to provide a robust framework for the financial management and accountability of Commonwealth entities. This Act was introduced to address the need for improved transparency, efficiency, and accountability in the management of public funds, ensuring that financial resources are used effectively and responsibly. The Act aims to enhance the financial management practices of Commonwealth entities, thereby fostering public confidence in the government’s financial stewardship. This legislative instrument, issued under section 32 of the Financial Management and Accountability Act 1997, directs the transfer of specified appropriations from the Department of Reconciliation and Aboriginal and Torres Strait Islander Affairs to the Department of Immigration and Multicultural and Indigenous Affairs. This transfer, as authorised by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit in the Department of Finance and Administration, ensures that the financial resources are appropriately allocated to the new agency to support its outcomes and activities. The policy objective of this instrument is to streamline financial management and support the operational needs of the newly configured department.

Scope and Application

The Direction under Section 32, Financial Management and Accountability Act 1997, issued by James Kerwin, Branch Manager of the Commonwealth Financial Reporting Unit within the Department of Finance and Administration, pertains to the transfer of specific funds from the 'old agency' to the 'new agency' as outlined in the attached schedule. This direction is aimed at ensuring the proper financial management and accountability in accordance with the provisions of the Financial Management and Accountability Act 1997. The funds listed in column 4, originating from the appropriation items detailed in column 1, are to be moved from the 'old agency' in column 2 to the 'new agency' in column 3. Specifically, the appropriation from the Department of Reconciliation and Aboriginal and Torres Strait Islander Affairs is to be transferred to the Department of Immigration and Multicultural and Indigenous Affairs, with the amounts for departmental outputs and administered expenses detailed in the schedule. This directive applies to the Commonwealth level, ensuring that the financial management practices comply with the overarching legal framework of the Financial Management and Accountability Act 1997. The document does not explicitly mention any exclusions, exemptions, or thresholds, but it operates within the jurisdictional scope provided by the Act. The application of this direction may be further elaborated or restricted through subordinate instruments as deemed necessary by the relevant authorities.

Key Provisions

The primary operative sections of this direction under section 32 of the Financial Management and Accountability Act 1997 are clearly outlined in the document. Specifically, section 32 allows for the transfer of moneys as detailed in the attached schedule. Column 1 lists the appropriation item, column 2 identifies the 'old agency', column 3 specifies the 'new agency', and column 4 details the dollar amount to be transferred. For instance, appropriation item "Appropriation Act (No.1) Departmental Outputs Outcome 1" from the Department of Reconciliation and Aboriginal and Torres Strait Islander Affairs is to be transferred to the Department of Immigration and Multicultural and Indigenous Affairs in the amount of $1,744,076.88. This transfer is effective as of the date of the direction, 17 December 2001. The obligations and requirements imposed by this direction are straightforward. The 'old agency', in this case, the Department of Reconciliation and Aboriginal and Torres Strait Islander Affairs, is mandated to facilitate the transfer of the specified funds to the 'new agency', which is the Department of Immigration and Multicultural and Indigenous Affairs. This transfer must be processed according to the details specified in the schedule attached to the direction, ensuring that the correct appropriation items are moved to the correct accounts within the stipulated timelines. Proper documentation and accounting records must be maintained to reflect these transfers accurately. In terms of consequences for non-compliance, the Financial Management and Accountability Act 1997 provides mechanisms to address breaches of its provisions. While the legislative instrument itself does not detail specific offences or penalties, the overarching Act outlines various sanctions for non-compliance. These can include civil penalties, administrative actions, and in more severe cases, criminal charges. The maximum penalties can vary depending on the nature and severity of the breach, but they may include fines, imprisonment, or both. It is imperative for the agencies involved to adhere strictly to the direction to avoid any adverse legal or financial repercussions.