Direction under section 32, Financial Management and Accountability Act 1997 - Adjustments of Appropriations on Change of Agency Functions (No. 9 of 2004-2005)

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to ensure effective management of public funds and accountability in financial operations within the Australian Government. This Act was introduced to address the need for clear guidelines and regulations governing the allocation, utilisation, and oversight of financial resources by government entities, aiming to enhance transparency and efficiency in public sector financial management. The Department of Finance and Administration, through a legislative instrument issued under section 32 of the FMA Act, directs the transfer of specific appropriations from one agency to another to align with the policy objectives of efficient resource allocation and improved accountability. This legislative instrument, numbered No. 9 of 2004-2005, highlights the ongoing commitment to refining financial processes within the government framework.

Scope and Application

This legislative instrument, F2007B00715, represents a direction issued under section 32 of the Financial Management and Accountability Act 1997, specifically authorising the transfer of specific moneys from one agency to another. This particular direction is executed by Anne Hazell, Division Manager of Financial Reporting and Cash Management Division, Department of Finance and Administration. The directive details the transfer of appropriation funds from the Australian Government Information Management Office to the Department of Finance and Administration, as specified in the attached schedule. The appropriation items in question include amounts from the Appropriation Act (No. 1) 2004-2005 and non-lapsing appropriations from prior years, reflecting both new and prior year funds. This transfer is a precise application of financial management legislation, ensuring that the appropriate authorities are allocated the necessary funds for their operations, and it is confined within the bounds of the Financial Management and Accountability Act 1997.

Key Provisions

The primary operative sections of this legislative instrument, as outlined under the Financial Management and Accountability Act 1997, involve the transfer of specified funds from one agency to another. Section 32 of the Act empowers an authorised person to direct such transfers, and in this instance, Anne Hazell, Division Manager of the Financial Reporting and Cash Management Division within the Department of Finance and Administration, has exercised this authority (section 32). This directive is evidenced by the attached schedule, which lists appropriation items, the 'old agency' from which funds are to be transferred, the 'new agency' to which funds are to be transferred, and the monetary amounts involved (Schedule 1). The obligations and requirements imposed by this Act are centred around financial management and accountability. Anne Hazell, in her capacity as Division Manager, is responsible for ensuring that the transfer of funds is executed accurately and in compliance with the provisions of the Act. The directive must reflect appropriations as stated in the schedule, and the transfer must be made from the 'old agency' to the 'new agency' as listed (Schedule 1). Proper documentation and record-keeping are also critical, as they are necessary to maintain transparency and accountability in financial management. Breaching the provisions of the Financial Management and Accountability Act 1997 can result in both civil and criminal consequences. Under section 18 of the Act, any person who wilfully or recklessly contravenes the Act can be subject to civil penalties, including fines. For more severe breaches, the Act may also lead to criminal charges, which can result in substantial fines or imprisonment, or both. The exact penalties depend on the nature and severity of the breach, but the Act provides for significant deterrents against non-compliance to ensure adherence to its financial management principles.