Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 9 of 2003-2004)

Overview

The Financial Management and Accountability Act 1997, enacted by the Commonwealth Parliament, was established to address the need for robust financial management and accountability frameworks within the Australian government. This Act serves as the cornerstone for ensuring that public funds are managed efficiently, economically, and effectively, while also promoting transparency and compliance with fiscal policies. The legislation seeks to establish a cohesive and consistent approach to financial management across all government entities, ensuring that they adhere to prescribed standards and practices. The policy objective of the Act is to foster fiscal responsibility, safeguard public resources, and enhance the overall accountability of government operations. On 4 February 2004, Jim Kerwin, Division Manager of the Financial Reporting and Cash Management Division within the Department of Finance and Administration, issued a direction under section 32 of the Act. This direction mandates the transfer of specific appropriations from one government agency to another, as outlined in the attached schedule. This particular directive involves the reallocation of funds from the Department of Parliamentary Services to the Department of the Parliamentary Library, as specified in the appropriation items for the years 2003-2004. The purpose of this transfer is to ensure that financial resources are appropriately allocated to support the mandated functions and activities of the respective departments.

Scope and Application

The Legislative Instrument F2007B00865, issued under the Financial Management and Accountability Act 1997, applies to the specified appropriation items listed in the schedule, detailing the transfer of funds from one agency to another. Specifically, the directive pertains to appropriations outlined in the Appropriation (Parliamentary Departments) Act (No. 1) 2003-2004 and the Appropriation Act (No. 1) 2003-2004, transferring funds from the Departmental Outputs of the Department of the Parliamentary Library and the Department of Parliamentary Services to a new agency. This legislative instrument is geographically and jurisdictionally bound to the Commonwealth level, governing financial transactions within federal agencies. The Act itself does not provide specific exclusions or exemptions; however, it is understood that the scope of its application can be extended or restricted through subordinate instruments. The directive issued by Jim Kerwin, Division Manager, Financial Reporting and Cash Management Division, Department of Finance and Administration, is a specific instance of the application of the Act, facilitating the transfer of $4,347,000 as detailed in the attached schedule.

Key Provisions

The direction under section 32 of the Financial Management and Accountability Act 1997 (section 32) instructs the transfer of specific moneys from one agency to another. The moneys to be transferred are detailed in column 4 of the attached schedule, with the appropriation items listed in column 1, the 'old agency' in column 2, and the 'new agency' in column 3. For instance, appropriation item number one involves the transfer of $4,347,000 from the Departmental Outputs of the Department of Parliamentary Services to the Department of the Parliamentary Library. The obligations imposed by this direction require the 'old agency' to transfer the specified funds to the 'new agency' as directed. The entities governed must ensure that the transfer is completed accurately and within the timeframes specified by the Act. This includes updating records to reflect the change in fund allocation and ensuring that all financial reporting accurately reflects the new allocations. Breach of the obligations set out in this direction can lead to significant consequences. While the specific penalties for non-compliance are not detailed in this direction, under the Financial Management and Accountability Act 1997, breaches of financial management directives can result in civil and criminal penalties. Civil penalties may include fines, while criminal penalties could involve imprisonment, depending on the severity and intent behind the breach. The exact penalties would depend on further legislative provisions and the interpretation by the courts. In summary, the direction mandates the transfer of specified funds from one agency to another as listed in the schedule. It imposes clear obligations on the agencies involved to ensure compliance with the financial directives. Non-compliance can result in serious civil and criminal consequences, underscoring the importance of adhering to the provisions set out in this legislative instrument.