Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 8 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 was enacted to ensure the effective management of public funds by government agencies. The Act establishes a framework for financial management and accountability, aiming to promote transparency, efficiency, and effectiveness in the use of public resources. Pursuant to section 32 of the Act, Anne Hazell, Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, has issued a direction to transfer specific funds from one agency to another, as listed in the attached schedule. This direction facilitates the reallocation of appropriations within the government to better align resources with the evolving priorities and responsibilities of the respective agencies. The objective of this legislative instrument is to support the efficient and effective use of public funds by ensuring they are directed towards the agencies best positioned to utilise them for the intended purposes.

Scope and Application

This legislative instrument, issued under section 32 of the Financial Management and Accountability Act 1997, applies to the specific appropriation items and agencies listed within the document. It involves the transfer of specified funds from the 'old agency' to the 'new agency', as outlined in the attached schedule. The legislation is geographically and jurisdictionally confined to the Commonwealth level, with the Department of Finance and Administration exercising the directive on behalf of the Australian government. The instrument specifies the appropriation items, the old and new agencies involved in the transfer, and the monetary amounts to be transferred, ensuring that financial accountability and transparency are maintained within the government's fiscal management. The directive does not include any stated exclusions, exemptions, or thresholds beyond the specific appropriation items and agencies listed. The application of this instrument is limited to the financial transfer as detailed and does not extend to other areas of financial management or accountability not covered by the directive.

Key Provisions

The legislative instrument issued under section 32 of the Financial Management and Accountability Act 1997 (Cth) involves the transfer of specified appropriation items from one government agency to another. Section 32 of the Act empowers the Director, or in this case, the Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, to direct such transfers. In this instance, Anne Hazell, Division Manager, has directed the transfer of funds from the Department of Immigration and Multicultural and Indigenous Affairs to three different departments: the Department of Communications, Information Technology and the Arts, the Department of the Environment and Heritage, and the Department of Health and Ageing. These transfers are itemised in the attached schedule, with specific appropriation items and corresponding amounts listed. The obligations imposed by this legislative instrument are clear and straightforward. The 'old agency', the Department of Immigration and Multicultural and Indigenous Affairs, must ensure that the specified funds are accurately accounted for and subsequently transferred to the 'new agency' as directed. This includes maintaining detailed records of the transfers and ensuring that the financial management processes comply with the requirements of the Financial Management and Accountability Act 1997. The 'new agency', on the other hand, must be prepared to receive the transferred funds and account for them as part of their budget allocations for the relevant financial year. Both agencies must adhere to the timelines and procedures outlined in the legislative instrument to facilitate a smooth and compliant transfer. Failure to comply with the directions specified in this legislative instrument may result in legal and financial consequences. Under the Financial Management and Accountability Act 1997, non-compliance with a direction issued by the Director can be considered a breach of the Act. The Act does not specify particular criminal or civil penalties for such breaches in this context, but it may lead to administrative actions, including potential audits, investigations, and financial penalties. The seriousness of the consequences would depend on the extent and impact of the non-compliance, with severe cases potentially leading to disciplinary actions against responsible officers or entities.