Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 8 of 2002-2003)

Overview

The Financial Management and Accountability Act 1997 was enacted to strengthen the financial management and accountability of Commonwealth agencies, ensuring that public funds are used effectively, efficiently and economically. This legislation was introduced by the Parliament of Australia to address gaps in financial oversight and reporting within government agencies. One of the key policy objectives of the Act is to provide a framework that enables the efficient and transparent allocation and management of public funds. The Act facilitates the transfer of appropriations between agencies as needed to align with government priorities and operational changes, as evidenced by the direction issued under section 32 by James Kerwin on 19 November 2002. This direction pertains to the transfer of specific appropriations from one agency to another, in this case, from the Department of the Environment and Heritage to the Bureau of Meteorology, to ensure that funds are appropriately allocated to support the intended outcomes and activities of the respective agencies.

Scope and Application

This legislative instrument, being a direction under section 32 of the Financial Management and Accountability Act 1997, applies to the transfer of funds between specified agencies within the Australian government. The directive is issued by the Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, and involves the transfer of specific appropriations from the Department of the Environment and Heritage to the Bureau of Meteorology. This transfer is detailed in a schedule attached to the direction, listing appropriation items, old and new agencies, and the monetary amounts to be transferred. The geographic and jurisdictional reach of this Act is limited to the Commonwealth level, as it pertains to the financial management of Australian government agencies. The direction outlines specific exclusions and thresholds, as it only concerns the transfer of listed appropriations and does not extend to other forms of financial transactions or appropriations not specified in the schedule. This legislative instrument does not establish new laws or alter existing legislation but serves as an administrative direction within the framework of the Financial Management and Accountability Act 1997. Any further application or restriction of these provisions would be subject to the broader parameters and subordinate instruments of the Act.

Key Provisions

The primary operative sections of this legislative instrument (No. 8 of 2002-2003) pertain to the transfer of specified funds from one government agency to another. Under section 32 of the Financial Management and Accountability Act 1997, James Kerwin, as the Manager of the Financial Reporting and Cash Management Division within the Department of Finance and Administration, has issued a direction for the transfer of funds. Specifically, the direction mandates the transfer of monies listed in column 4 of the attached schedule, which pertain to appropriation items from the 2002-2003 fiscal year, from the 'old agency' listed in column 2 to the 'new agency' listed in column 3. For example, the appropriation from the Departmental Outputs - Outcome 2 of the Department of the Environment and Heritage is to be transferred to the Bureau of Meteorology in the amount of $166,764,000. This Act imposes several obligations on the entities involved. The 'old agency', in this case, the Department of the Environment and Heritage, must ensure that the specified funds are correctly identified and segregated in accordance with the appropriation items. The 'new agency', here the Bureau of Meteorology, must be prepared to receive and properly account for the transferred funds. Additionally, both agencies are required to maintain accurate and up-to-date records of the transactions as per the provisions of the Financial Management and Accountability Act 1997. The act also necessitates that all transfers comply with the relevant appropriation acts and financial management policies. In terms of consequences for breach, the Financial Management and Accountability Act 1997 does not explicitly outline specific offences or penalties for non-compliance with this direction. However, any failure to comply with the Act's general requirements for financial management and accountability could potentially lead to civil or criminal liability under other sections of the Act. For instance, if the transfer of funds results in financial mismanagement, it could lead to disciplinary action against responsible officers, as well as potential financial penalties or restitution. The severity of these consequences would depend on the extent and impact of the non-compliance, as well as any subsequent investigations and findings by relevant authorities.