Commonwealth: Audit Amendment Act 1979 (Cth)

Audit Amendment Act 1979 No. 8 of 1979 An Act to amend the Audit Act 1901. BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows: Short title, &c. 1. (1) This Act may be cited as the Audit Amendment Act 1979. (2) The Audit Act 1901 is in this Act referred to as the Principal Act. Commencement 2. (1) Subject to this section, this Act shall come into operation on the day on which it receives the Royal Assent. (2) Sections 18, 19, 28, 39 and 51 and sub-sections 24(2), (3) and (4) shall come into operation on such date as is, or such respective dates as are, fixed by Proclamation. (3) Sub-section 36(2) and sections 37 and 57 shall come into operation on a date to be fixed by Proclamation. (4) Sub-section 4(1) shall be deemed to have come into operation on 1 July 1978. (5) The amendment of section 36a of the Principal Act specified in the Schedule shall be deemed to have come into operation on 1 July 1978. Interpretation 3. Section 2 of the Principal Act is amended— (a) by inserting after the definition of "accounting officer" the following definition: "'Auditor-General's Office' means the branch of the Australian Public Service under the direct control of the Auditor-General;"; (b) by omitting the definitions of "Department" and "public moneys" and substituting the following definitions: "'Department' means— (a) a Department of State; or (b) a Department of the Parliament, and includes a prescribed authority; 'enactment' means— (a) an Act; (b) an Ordinance of the Australian Capital Territory; or (c) an instrument (including rules, regulations or bylaws) made under an Act or under such an Ordinance; 'information storage device' means— (a) a computer; (b) papers or other materials on which there are marks, symbols, perforations or other indicators having a meaning for persons qualified to interpret them; (c) a disc, tape or other device on which information may be stored; or (d) a device, whether electronic or otherwise, capable of storing information; 'officer' means— (a) a person who is employed by the Commonwealth; (b) a person who— (i) constitutes, or is acting as a person constituting, a prescribed authority; (ii) is, or is acting as, a member of a prescribed authority or is a deputy of such a member; or (iii) is employed by a prescribed authority; (c) a member of the Defence Force; (d) a Commonwealth Police Officer; (e) a member of the Police Force of the Australian Capital Territory; or (f) a person employed by the Commonwealth (other than a person referred to in a preceding paragraph of this definition) who is included in a class of persons employed by the Commonwealth declared by the regulations to be a class of persons to whom this paragraph applies; 'Ordinance', in relation to the Australian Capital Territory, includes a law of a State that applies, or the provisions of a law of a State that apply, in the Territory by virtue of an enactment; 'prescribed authority' means a body corporate, or an unincorporated body, established for a public purpose by or under an enactment, being a body— (a) that is declared by the regulations to be a prescribed authority for the purposes of this Act; or (b) that is included in a class of bodies so established declared by the regulations to be a class of prescribed authorities for the purposes of this Act; 'public moneys' means revenue, loan, trust and other moneys received or held by any person for or on behalf of the Commonwealth or a prescribed authority, and includes all moneys forming part of the Consolidated Revenue Fund, the Loan Fund or the Trust Fund;"; (c) by adding "or a prescribed authority" at the end of the definition of "stores"; (d) by omitting the definition of "the Commonwealth Public Account"; and (e) by adding at the end thereof the following sub-sections: "(2) A reference in this Act to an Appropriation Act for a financial year shall be read as a reference to an Act (whether cited as an Appropriation Act or otherwise) for the appropriation of moneys out of the Consolidated Revenue Fund for the service of that financial year or for specified expenditure in respect of that financial year. "(3) For the purposes of this Act, where a person collects, receives or holds a cheque or other instrument ordering or authorizing the payment of moneys, being an instrument of a kind that may be lodged with a bank for the purpose of enabling the bank to collect the moneys so payable and credit those moneys to an account with the bank, the person— (a) shall be deemed to have collected or received, or to hold, as the case may be, an amount of moneys equal to the sum so payable; and (b) if the moneys so payable would, if they had been collected, received or held by him as moneys, be public moneys, shall be deemed to have collected or received, or to hold, as the case may be, an amount of public moneys equal to the sum so payable. "(4) In this Act, unless the contrary intention appears, a reference to an efficiency audit of operations of a body or person shall be read as a reference to— (a) an examination of the functions performed by, and the operations carried on by, the body or person for the purpose of forming an opinion concerning the extent to which those operations are being carried on in an economical and efficient manner; and (b) an examination of the procedures that are followed by the body or person for reviewing operations carried on by the body or person, and an evaluation of the adequacy of those procedures to enable the body or person to assess the extent to which those operations are being carried on in an economical and efficient manner. "(5) In sub-section (4), a reference to a body shall be read as including a reference to a Department of State and a Department of the Parliament. "(6) For the purposes of this Act— (a) a provision of this Act authorizing the Auditor-General or another person to have free access to, or to search, accounts or records shall be taken to authorize the Auditor-General or other person, in a case where accounts or records are kept by means of an information storage device, to have free access to, or to search, as the case may be, the information contained in the accounts or records, or in such extracts from the accounts or records as the Auditor-General or other person requests— (i) in a form directed by the Auditor-General or other person; or (ii) if the Auditor-General or other person has not given a direction for the purposes of sub-paragraph (i)—in a form that can be understood by sight; (b) a person who is entitled, by or under this Act, to take a copy of, or extracts from, accounts or records is entitled, in a case where accounts or records are kept by means of an information storage device, to take a copy of, or extract from, the information contained in the accounts or records— (i) in a form directed by the person; or (ii) if the person has not given a direction for the purposes of sub-paragraph (i)—in a form that can be understood by sight; (c) a requirement under this Act to produce accounts or records to the Auditor-General or to another person shall be taken to include a requirement to produce, in a case where the accounts or records are kept by means of an information storage device, the information contained in the accounts or records, or in such extracts from the accounts or records as the Auditor-General or other person requests— (i) in a form directed by the Auditor-General or other person; or (ii) if the Auditor-General or other person has not given a direction for the purposes of sub-paragraph (i)—in a form that can be understood by sight; and (d) a provision of this Act authorizing or requiring the Auditor-General to inspect, examine or audit accounts or records shall, in a case where the accounts or records are kept by means of an information storage device, be taken to include a requirement authorizing or requiring the Auditor-General to be provided with the information contained in the accounts or records, or in such extracts from the accounts or records as the Auditor-General requests— (i) in a form directed by the Auditor-General; or (ii) if the Auditor-General has not given a direction for the purposes of sub-paragraph (i)—in a form that can be understood by sight. "(7) Without limiting the powers of the Auditor-General, or of a person authorized by the Auditor-General, under any other provision of this Act, where the Auditor-General, or a person authorized by the Auditor-General, is entitled, under another provision of this Act, to inspect, examine or audit any accounts or records and those accounts or records are kept by means of an information storage device, the Auditor-General or person so authorized is entitled to be provided with such reasonable facilities for access to that information storage device as he deems necessary for the performance of his functions under this Act.". Application of Act 4. (1) Section 2a of the Principal Act is amended— (a) by inserting in sub-section (1) "the Northern Territory or" before "an external Territory"; and (b) by omitting from sub-section (1) "any such Territory" and substituting " the Northern Territory or an external Territory". (2) Section 2a of the Principal Act is further amended by omitting sub-section (2) and substituting the following sub-section: "(2) Subject to any modifications and exceptions specified in regulations made in pursuance of section 63 or 63a, this Act applies outside Australia and the Territories to and in relation to every person who is or has been an officer, whether or not he is an Australian citizen, and the functions, powers, duties and responsibilities conferred or imposed by this Act on the Minister, the Auditor-General and other specified persons and authorities in relation to persons who are or have been officers, and in relation to public moneys and other matters, are exercisable or shall be performed accordingly.". Responsibilities of Permanent Heads 5. After section 2a of the Principal Act the following section is inserted in Part I: "2ab. (1) The Permanent Head of a Department is responsible for making appropriate arrangements for implementing the provisions of this Act, the regulations and any directions given under this Act or under the regulations in relation to the Department. "(2) In sub-section (1)— 'Department' means— (a) a Department of State; (b) a Department of the Parliament; or (c) a branch or part of the Australian Public Service in relation to which a person has, under an Act, the powers of, or exercisable by, the Permanent Head of a Department of the Australian Public Service; 'Permanent Head' means— (a) in relation to a Department of State or a Department of the Parliament—the person who, under the Public Service Act 1922, holds, or is performing the duties of, the office of Permanent Head of that Department; or (b) in relation to a branch or part of the Australian Public Service referred to in paragraph (c) of the definition of 'Department' in this sub-section—the person who has the powers of, or exercisable by, the Permanent Head of a Department of the Australian Public Service so far as those powers relate to that branch or part of that Service.". 6. Section 4 of the Principal Act is repealed and the following section substituted: Remuneration of Auditor-General "4. (1) The Auditor-General shall be paid such remuneration as is determined by the Remuneration Tribunal. "(2) The Auditor-General shall be paid such allowances as are prescribed. "(3) This section has effect subject to the Remuneration Tribunals Act 1973. "(4) Remuneration and allowances payable to the Auditor-General under this section shall be a charge upon, and paid out of, the Consolidated Revenue Fund, which, to the necessary extent, is hereby appropriated accordingly.". Remuneration of Acting Auditor-General 7. (1) Section 9a of the Principal Act is amended by omitting the words "of salary provided in section four of this Act as the salary payable to the Auditor-General and an allowance at the rate of the allowance payable to the Auditor-General under that section, and that remuneration and allowance" and substituting the words "at which salary is payable under section 4 to the Auditor-General and of allowances at the respective rates at which allowances are payable under that section to the Auditor-General, and that remuneration". (2) Salary and allowances paid before the commencement of this section to a person acting as the Auditor-General by reference to the respective rates at which salary and allowances were payable to the Auditor-General under the Remuneration and Allowances Act 1973, or under a determination in force under the Remuneration Tribunal Act 1973 or that Act as subsequently amended, shall be deemed to have been lawfully paid. 8. (1) Section 11 of the Principal Act is repealed and the following section substituted: Auditor-General may appoint persons to inspect and audit accounts, and to carry out efficiency audits "11. (1) The Auditor-General may, by instrument under his hand— (a) appoint a person to inspect, examine and audit any accounts, records or stores which are required by this Act, or by any other Act, to be inspected, examined or audited by the Auditor-General, and to report the results of an inspection, examination or audit carried out by him under the appointment to the Auditor-General; or (b) appoint a person to inspect, examine and audit the accounts, records or stores specified in the instrument (being accounts, records or stores that are required by this Act, or by any other Act, to be inspected, examined or audited by the Auditor-General) and to report the results of the inspection, examination or audit to the Auditor-General, and a person so appointed has, by virtue of his appointment, power to inspect any accounts, records or stores that are required to be so inspected, examined or audited by the Auditor-General or to inspect the accounts, records or stores specified in the instrument, as the case may be. "(2) The Auditor-General may, by instrument under his hand, appoint a person— (a) to carry out any efficiency audits of operations of relevant bodies that the Auditor-General is required by this Act, or by any other Act, to carry out, and to report the results of an efficiency audit carried out under the appointment to the Auditor-General; (b) to carry out an efficiency audit of the operations, or specified operations, of a specified relevant body, and to report the results of the audit to the Auditor-General; (c) to examine the operations or procedures of any relevant body for the purposes of an efficiency audit of the operations of the body that is being, or is to be, carried out by the Auditor-General, and to report the results of the examination to the Auditor-General; or (d) to examine, for the purposes of an efficiency audit of the operations of a specified relevant body that is being, or is to be, carried out by the Auditor-General, specified operations or procedures of the body, and to report the results of the examination to the Auditor-General. "(3) In sub-section (2), 'relevant body' has the same meaning as it has in Division 2 of Part VI.". (2) A person holding an appointment under section 11 of the Principal Act immediately before the commencement of this section continues to hold that appointment upon the commencement of this section as if it had been made under sub-section 11(1) of the Principal Act as amended by this Act. 9. Section 12 of the Principal Act is repealed and the following section substituted: Reports by Auditor-General to Minister "12. (1) The Auditor-General shall draw to the attention of the Minister such matters arising out of the exercise of his powers and the performance of his functions under this Act or the Regulations (other than his powers and functions under Division 2 of Part VI) as are, in the opinion of the Auditor-General, of sufficient importance to justify his so doing. "(2) Where the Auditor-General is of the opinion that a matter arising out of the exercise of his powers or the performance of his functions under Division 2 of Part VI is of sufficient importance to justify his doing so, the Auditor-General shall— (a) if the matter arises in connexion with the carrying out of an efficiency audit of operations of a Department of State— (i) draw the matter to the attention of the Prime Minister, the Minister administering this Act and the Public Service Board; and (ii) if neither of those Ministers is the Minister administering that Department of State—also draw the matter to the attention of the Minister administering that Department of State; (b) if the matter arises in connexion with the carrying out of an efficiency audit of operations of a Department of the Parliament—draw the matter to the attention of the person who is the relevant person, or the persons who are the relevant persons, in respect of that Department under sub-section (3); or (c) if the matter arises in connexion with the carrying out of an efficiency audit of operations of another relevant body— (i) draw the matter to the attention of the Prime Minister, the Minister administering this Act and the Public Service Board; and (ii) if neither of those Ministers is the Minister administering the Department of State responsible for dealing with matters that relate to that body—also draw the matter to the attention of the Minister administering that Department of State. "(3) For the purposes of paragraph (2)(b)— (a) in respect of the Department of the Senate—the relevant person is the President of the Senate; (b) in respect of the Department of the House of Representatives— the relevant person is the Speaker of the House of Representatives; or (c) in respect of the Department of the Parliamentary Library, the Department of the Parliamentary Reporting Staff or the Joint House Department—the relevant persons are the President of the Senate and the Speaker of the House of Representatives. "(4) In paragraph (2)(c)– (a) 'relevant body' has the same meaning as it has in Division 2 of Part VI; and (b) a reference to the Minister administering a Department of State shall be read as including a reference to another Minister acting for and on behalf of the Minister administering the Department of State.". Auditor-General may call for persons and records 10. Section 13 of the Principal Act is amended— (a) by omitting from sub-section (1) "accounts books vouchers documents and papers" and substituting "accounts and records"; and (b) by omitting from sub-section (2) "book document or record" and substituting "records". 11. (1) Section 14b of the Principal Act is repealed and the following section substituted; Auditor-General to have access to accounts and records "14b. (1) Without prejudice to the powers conferred by any other provision of this Act, the Auditor-General or an authorized officer is entitled to have full and free access, at all reasonable times, to all accounts and records in the possession of, or under the control of— (a) any authority established or appointed under an enactment; (b) any officer or employee under the control of any such authority; or (c) any other person, being accounts or records which deal with, form the basis of, or are relevant directly or indirectly to, the receipt or expenditure of any public moneys, the receipt, custody or disposal of stores or an approval for the expenditure of any such moneys, and may make copies of, or take extracts from, any such accounts or records. "(2) Such an authority, officer, employee or person shall, upon request at any reasonable time by the Auditor-General or by an authorized officer produce to him all such accounts or records as are specified or described in the request or are relevant to any matter so specified or described. "(3) In this section, 'authorized officer' means an officer authorized by the Auditor-General to act under this section.". (2) A person authorized to act under section 14b of the Principal Act immediately before the date of commencement of this section shall be deemed to be authorized, on that date, to act under section 14b of the Principal Act as amended by this Act, but his authorization may be revoked by the Auditor-General. Secrecy 12. Section 14c of the Principal Act is amended— (a) by omitting from sub-section (1) "sections thirteen, fourteen, fourteen a and fourteen b of this Act" and substituting "sections 13, 14, 14a, 14b, 41 and 48e"; (b) by omitting from sub-section (2) "section thirteen, fourteen or fourteen b of this Act" and substituting "section 11, 13, 14, 14b, 41 or 48e"; (c) by omitting from sub-section (3) "section thirteen, fourteen or fourteen b of this Act" and substituting "section 11, 13, 14, 14b, 41 or 48e"; (d) by omitting from sub-section (3) "accounts, books, documents or papers" and substituting" accounts or records"; and (e) by omitting from sub-section (4) "section thirteen, fourteen or fourteen b of this Act" and substituting "section 11, 13, 14, 14b, 41 or 48e". Persons subject to Act 13. Section 16 of the Principal Act is amended by omitting "books" and substituting "records". 14. (1) Sections 17, 18 and 19 of the Principal Act are repealed and the following section is substituted: Overdrafts not to be arranged without authority "18. An overdraft on a public or official account at a bank shall not be arranged without the authority of the Minister.". (2) An overdraft maintained on a public or official account at a bank immediately before the date of commencement of this section shall, on and after that date, be deemed to be an overdraft arranged with the authority of the Minister for Finance under section 18 of the Principal Act as amended by this Act. Heading to Part IV 15. The heading immediately preceding section 20 of the Principal Act is repealed and the following heading substituted: "PART IV—COLLECTION OF MONEYS AND SECURITIES". Minister may agree with any bank for conducting business 16. (1) Section 20 of the Principal Act is amended by adding at the end thereof the following sub-section: "(3) An account for the receipt, custody, payment or transmission of public moneys shall not be opened otherwise than in accordance with an agreement under this section.". (2) An account maintained with a bank immediately before the commencement of this section for the purposes of a provision of this Act, the regulations or any directions given under this Act or the regulations, being an account that was opened by, or by authority of, the Treasurer or the Minister for Finance, shall, in a case where the account was not opened in accordance with an agreement that was expressed to have been made under section 20 of the Audit Act 1901, be deemed, for the purposes of the Principal Act as amended by this Act, to be an account that was opened in accordance with an agreement under that section. 17. (1) Section 21 of the Principal Act is repealed and the following section substituted: Commonwealth Public Account "21. (1) The Minister— (a) shall, in accordance with section 20, open and maintain, with such banks as he determines, such accounts, each bearing the designation 'Commonwealth Public Account', as he deems fit; and (b) may, in accordance with section 20, open and maintain, with such banks as he determines, such other accounts, each bearing a designation that includes the words 'Commonwealth Public Account' and describes the purpose or purposes of the account, as he deems fit. "(2) All moneys paid into a bank to the credit of an account maintained in accordance with sub-section (1) shall be deemed to be public moneys and the property of the Commonwealth, and to be moneys lent by the Commonwealth to the bank. "(3) A reference to the Commonwealth Public Account in this Act, in the regulations or in an instrument (including directions) under this Act or under the regulations is, unless the contrary intention appears, a reference to the accounts for the time being maintained in accordance with sub-section (1).". (2) Where an account maintained with a bank immediately before the commencement of this section, bore the designation "Commonwealth Public Account" or a designation that included the words "Commonwealth Public Account" and described the purpose or purposes of the account, the account shall be treated, for the purpose of section 21 of the Principal Act as amended by this Act, as if it had been opened by the Minister, in accordance with section 20 of the Principal Act as so amended, on the date of commencement of this section. 18. (1) Sections 22 and 23 of the Principal Act are repealed and the following sections substituted: Accounting officers to pay money, &c., to Minister or bank, &c. "22. Except as otherwise provided in this Act, every accounting officer shall, in accordance with directions of the Minister, transmit or pay, daily or at such other intervals as the Minister directs, all public moneys collected or received by him— (a) to the Minister; (b) into the Commonwealth Public Account; (c) to such person as the Minister directs; or (d) to the credit of another account with a bank as directed by the Minister. Minister to pay money daily into bank "23. The Minister shall daily pay into the Commonwealth Public Account all public moneys received by him.". (2) A direction in force under section 22 of the Principal Act immediately before the date of commencement of this section has effect, on and after that date, as if it had been given by the Minister for Finance under section 22 of the Principal Act as amended by this Act. 19. Sections 25 to 30 (inclusive) of the Principal Act are repealed and the following sections substituted: Private moneys collected by officers, &c. "25. (1) Where— (a) moneys are, in pursuance of an enactment, to be paid to the Minister administering this Act, another Minister or an officer, into the Treasury or to the credit of the Trust Fund; (b) a Minister or officer who is, by virtue of his office, the trustee, or one of the trustees, of a trust receives moneys as the trustee, or as a trustee, of the trust; or (c) moneys are otherwise received by a Minister or officer in the course of performing the duties of his office, and the moneys are to be held otherwise than on account of, or for the use or benefit of, the Commonwealth, the moneys are moneys to which this section applies. "(2) Subject to this section, moneys to which this section applies form part of the Trust Fund. "(3) Where the Minister is of the opinion that, having regard to the terms on which any moneys to which this section applies are required to be held, it would not be appropriate for those moneys to form part of the Trust Fund, the Minister may direct, in writing, that the moneys shall not form part of the Trust Fund and may, from time to time while such a direction is in force, give further directions, in writing, as to the manner in which those moneys are to be dealt with. "(4) Where, by virtue of a direction given by the Minister under sub-section (3), moneys to which this section applies do not form part of the Trust Fund, a person shall not fail to comply with a direction given by the Minister under that sub-section as to the manner in which those moneys are to be dealt with. Penalty: $100. "(5) Where, by virtue of sub-section (2), moneys have become part of the Trust Fund and— (a) those moneys have, for a continuous period of not less than 6 years, stood to the credit of the Trust Fund without— (i) any portion of those moneys having been expended for the purpose for which those moneys are held; or (ii) any claim having been made by a person entitled to those moneys; or (b) the purpose for which those moneys are held is no longer capable of being fulfilled, those moneys may be paid to the Consolidated Revenue Fund and, where interest on those moneys has been paid to the Trust Fund in accordance with a direction of the Minister given under sub-section 62b(3), an amount equal to that interest shall also be paid to the Consolidated Revenue Fund. "(6) Where the Minister is satisfied that a person is entitled to any moneys paid to the Consolidated Revenue Fund in pursuance of sub-section (5), those moneys shall be paid to that person, and the Consolidated Revenue Fund is appropriated accordingly. "(7) Sub-sections (2) to (6) (inclusive) apply to and in relation to moneys to which this section applies, being moneys of a kind referred to in paragraph (a) or (b) of sub-section (1). to the extent only to which those provisions are not inconsistent with the provisions of the enactment or the terms of the trust, as the case may be, applicable to those moneys. Securities to be dealt with as directed "26. Each accounting officer shall, daily or at such other intervals as the Minister directs, transmit all bonds, debentures or other securities collected or received by him in the course of carrying on the duties of his office to the Minister or to such person as the Minister directs in such manner as the Minister directs.". 20. (1) Section 32 of the Principal Act is repealed and the following section substituted: Governor-General's warrant "32. (1) Where it appears to the Minister that an amount, being an amount not exceeding the amount available for expenditure in respect of any services or purposes in accordance with an appropriation of the Consolidated Revenue Fund or Loan Fund (including a contingent or conditional appropriation), is required, or is likely to be required, to be withdrawn from the Commonwealth Public Account for expenditure in respect of those services or purposes, he may notify the Auditor-General accordingly, by instrument under his hand, in accordance with Form 1 in Schedule 2. "(2) Upon receipt of an instrument under sub-section (1), the Auditor-General shall— (a) if he is satisfied that the amount specified in the instrument does not exceed the amount available for expenditure in respect of the services or purposes in accordance with the appropriation— (i) give a certificate in relation to the amount by writing under his hand in accordance with Form 2 in Schedule 2; and (ii) return the instrument and certificate to the Minister; or (b) if he is not so satisfied— (i) refuse to give such a certificate; (ii) state in writing his reasons for refusing to give the certificate; and (iii) return the instrument and statement to the Minister. "(3) Where the Auditor-General has given a certificate under this section in relation to an amount specified, in relation to an appropriation, in an instrument prepared by the Minister under this section, the Governor-General may issue to the Minister a warrant under his hand in accordance with Form 3 in Schedule 2 authorizing the drawing of that amount from the Commonwealth Public Account for expenditure in accordance with that appropriation in respect of the services or purposes referred to in the instrument. "(4) The Governor-General may issue a warrant to the Minister under sub-section (3) without obtaining the advice of the Federal Executive Council. "(5) Strict compliance with a form referred to in this section is not required and substantial compliance is sufficient. "(6) A reference in this section to the Auditor-General shall be read as including a reference to a person appointed by the Auditor-General by instrument under his hand to act on his behalf for the purposes of this section. "(7) A reference in this section, or in an instrument, certificate or warrant under this section, to the amount available for expenditure in respect of services or purposes in accordance with an appropriation shall, in the case of a contingent or conditional appropriation, be read as a reference to the amount that is, subject to the occurrence of the contingency or the fulfilment of the condition, available for expenditure in respect of the services or purposes in accordance with the appropriation. "(8) Nothing in this section authorizes the payment of moneys out of a bank account comprised in the Commonwealth Public Account otherwise than in accordance with section 34.". (2) A warrant in force immediately before the date of commencement of this section under section 32 of the Principal Act has effect on and after that date as if it had been issued under section 32 of the Principal Act as amended by this Act. Minister may make payments on receipt of warrant 21. Section 33 of the Principal Act is amended— (a) by omitting from sub-section (1) "any bank account in which the Commonwealth Public Account is kept" and substituting "the Commonwealth Public Account"; (b) by omitting from sub-section (3) "section thirty-six c of this Act" and substituting "section 36c or 58a"; and (c) by omitting from sub-section (4) "in which the Commonwealth Public Account is kept" and substituting "comprised in the Commonwealth Public Account". 22. Section 33a of the Principal Act is repealed and the following section substituted: Warrant procedure to apply to transfers between accounts "33a. (1) Subject to sub-section (2)— (a) the making of a payment by means of a cheque drawn on a bank account comprised in the Commonwealth Public Account shall, for the purposes of sections 31 and 32, be deemed to be the making of a withdrawal from the Commonwealth Public Account notwithstanding that the amount of the cheque is credited to another such bank account; and (b) the making of an entry (otherwise than in pursuance of the drawing or paying of a cheque) in the accounts kept for the purpose of recording transactions in relation to the Commonwealth Public Account debiting an account shall be deemed, for the purposes of sections 31 and 32, to be the withdrawal of the amount so debited from the Commonwealth Public Account notwithstanding that a corresponding entry is made crediting another account with that amount. "(2) Sub-section (1) does not apply in relation to the making of a payment, or of an entry, of a kind referred to in that sub-section if the making of the payment or entry does not have the effect of reducing the amount available for expenditure by virtue of an appropriation.". Warrants not required for certain expenditure 23. Section 33b of the Principal Act is amended by omitting "The last three preceding sections do not apply in relation to moneys" and substituting "Sections 32 and 33 do not apply in relation to moneys standing to the credit of an account comprised". Duties of paying officers, &c. 24. (1) Section 34 of the Principal Act is amended by omitting sub-section (4). (2) Section 34 of the Principal Act is repealed and the following section substituted: Duties of paying, authorizing and certifying officers "34. (1) An accounting officer shall not cause or permit an amount to be paid out of— (a) a bank account comprised in the Commonwealth Public Account; or (b) any other bank account opened under section 20 that is designated as a drawing account, except by way of, or for the purpose of, a payment that has been authorized by a person appointed by the Minister for the purposes of this sub-section (in this section referred to as an 'authorizing officer'). "(2) An authorizing officer shall not authorize the payment of an amount under sub-section (1) unless— (a) after making such checks as are prescribed or specified in directions given by the Minister under the regulations, he is satisfied that moneys are lawfully available for the payment of that amount; (b) a person (who may be the same person as the authorizing officer) appointed by the Minister for the purpose (in this section referred to as a 'certifying officer') has certified that the payment may properly be made; and (c) such other requirements relating to the authorization of the payment of the amount as are prescribed, or specified in directions given by the Minister under the regulations, have been complied with. "(3) For the purposes of sub-section (2), moneys are not lawfully available for a payment unless— (a) in the case of a payment from the Consolidated Revenue Fund or the Loan Fund—moneys sufficient for the payment are available from a relevant appropriation of that Fund, after allowing for payments previously made or authorized to be made in respect of that appropriation, or are available in accordance with section 36a; or (b) in the case of a payment from the Trust Fund—moneys sufficient for the payment stand to the credit of a relevant Trust Account or head of the Trust Fund, after allowing for any payments previously authorized to be made that are to be, but have not yet been, debited to that Trust Account or head of the Trust Fund. "(4) Subject to sub-section (5), a certifying officer shall not give a certificate under sub-section (2) in relation to the payment of an amount unless, after any relevant provisions of the regulations and of directions given by the Minister under the regulations have been complied with, he is satisfied that the payment may properly be made. "(5) The regulations may provide that, in respect of payments included in a particular class of payments, a certifying officer may give a certificate under sub-section (2) if, after requirements prescribed by the regulations in respect of payments of that class, and any relevant directions given by the Minister under the regulations, have been complied with, he has no reason to believe that the payment may not properly be made. "(6) In addition to compliance with the regulations and directions given by the Minister under the regulations, a certifying officer may carry out such investigations as he thinks necessary before deciding whether to give a certificate under sub-section (2).". (3) Upon the commencement of this sub-section— (a) a person who, immediately before the commencement of this section, held an appointment by the Minister under sub-section 34(1) of the Principal Act for the purpose of authorizing the payment of accounts shall be deemed to have been appointed by the Minister under sub-section 34(1) of the Principal Act as amended by this Act for the purposes of that sub-section; and (b) a person who, immediately before the commencement of this section, held an appointment by the Minister under sub-section 34(1) of the Principal Act for the purpose of certifying as to the correctness of accounts shall be deemed to have been appointed by the Minister under sub-section 34(2) of the Principal Act as amended by this Act for the purposes of that sub-section. (4) The Minister may, at any time, revoke the appointment of a person referred to in sub-section (3). 25. After section 34 of the Principal Act the following section is inserted: Act of grace payments "34a. (1) Subject to sub-section (2), where an authorized person is satisfied that, by reason of special circumstances, it is reasonable to do so, he may direct— (a) that an amount proposed to be paid to a person by the Commonwealth; or (b) that amounts proposed to be paid to a person by the Commonwealth by way of periodical payments, be treated as properly payable notwithstanding that the amount is, or the amounts are, not payable in pursuance of the law or under a legal liability, but this sub-section does not authorize a payment or payments otherwise than out of moneys that are lawfully available for the purpose. "(2) An authorized person shall not give a direction under sub-section (1) in respect of an amount exceeding $25,000 proposed to be paid to a person as a single amount, or in respect of amounts aggregating more than $5,000 per year proposed to be paid to a person by way of periodical payments, unless he has considered a report concerning the proposed payment, or proposed periodical payments, furnished to him by a Committee consisting of the Secretary to the Department of Finance, the Secretary to the Department of Administrative Services and the Comptroller-General of Customs. "(3) The Minister may appoint a person to be a deputy of the person for the time being holding, or performing the duties of, an office specified in sub-section (2). "(4) Where the person for the time being holding, or performing the duties of, an office specified in sub-section (2) is, at any time, unable to act as a member of the Committee referred to in that sub-section, a deputy of that person may act as a member of that Committee on his behalf and shall, while so acting, be deemed to be a member of that Committee in place of that person. "(5) The regulations may make provisions for and in relation to the conduct of the business of, and the convening and conduct of meetings of, the Committee referred to in sub-section (2). "(6) In this section, 'authorized person' means the Minister or an officer appointed by the Minister to be an authorized person for the purposes of this section.". Certain amounts deemed appropriated 26. Section 35 of the Principal Act is amended by omitting sub-section (4) and substituting the following sub-section: "(4) Without limiting the generality of sub-sections (1), (2) and (3), where an amount that is, or the total of amounts that are, specified in an item, subdivision or division in a Schedule to an Appropriation Act for a financial year is expressed to be— (a) for payment to the credit of a Trust Account (in this sub-section referred to as the 'replacement Trust Account'); and (b) less an amount that is described as the unrequired balance, or the unrequired part of the balance, of another Trust Account (in this sub-section referred to as the 'superseded Trust Account'), then— (c) an amount equal to the amount referred to in paragraph (b) shall be deemed to have been appropriated for the purposes of the replacement Trust Account; (d) the Minister is authorized to issue and apply the amount referred to in paragraph (c) accordingly; and (e) amounts— (i) received from the sale of articles purchased or produced, or for work paid for, with amounts paid out of the superseded Trust Account for a purpose included in the purposes of that account and in the purposes of the replacement Trust Account; or (ii) paid by any person for a purpose included in the purposes of the superseded Trust Account and in the purposes of the replacement Trust Account, shall, notwithstanding any other provision of this Act, be paid to the credit of the replacement Trust Account.". 27. After section 35 of the Principal Act the following section is inserted: Transfer of functions between Departments "35a. (1) Where the Minister is satisfied that it is necessary to do so in consequence of a function of a Department (in this sub-section referred to as the 'Original Department') having become, by virtue of an enactment or of an order made by the Governor-General, a function of another Department, whether upon the abolition of the original Department or otherwise, the Minister may, by writing under his hand, direct that all or any of the moneys appropriated by an Appropriation Act that could, if the change of function had not taken place, lawfully have been issued and applied for a particular purpose (in this sub-section referred to as the 'original purpose'), being a purpose related to the performance by the original Department of that function, may be issued and applied for the corresponding purpose related to the performance by the other Department of that function and, where such a direction is given, the Appropriation Act has effect, in relation to the issue and application of moneys in accordance with the direction, as if it had appropriated those moneys for that corresponding purpose. "(2) Sub-section (1) does not affect the operation of an Appropriation Act in accordance with an order made by the Governor-General under section 19b or 19ba of the Acts Interpretation Act 1901 except to the extent to which that operation would be inconsistent with a direction given under that sub-section, whether before or after the making of the order. "(3) An appropriation contained in an Appropriation Act under a heading referring to a Department, being an appropriation for a purpose that is so expressed as to be capable of being given effect to by another Department, continues to be available for that purpose, subject to any direction given under sub-section (1), notwithstanding the abolition of that Department or the transfer to another Department of a function of that first-mentioned Department to which that purpose is related. "(4) Where— (a) a function of a Department (in this sub-section referred to as the 'original Department') becomes, by virtue of an enactment or of an order made by the Governor-General, a function of another Department, whether upon the abolition of the original Department or otherwise; and (b) immediately before the date on which that function becomes a function of that other Department, a power or function under this Act or under the regulations could, under an appointment made under this Act or under the regulations, have been exercised or performed with respect to the original Department by the person for the time being holding, or performing the duties of, an office in the original Department, that power or function may, by virtue of this sub-section, be exercised or performed by that person, on and after that date, with respect to the other Department, and, if the original Department continues in existence but his office is abolished in consequence of the change in the functions of the original Department, also with respect to the original Department, until his authority to do so is terminated under sub-section (5). "(5) Where a person would, but for this sub-section, be authorized by sub-section (4) to exercise a power or perform a function under this Act or the regulations with respect to a Department, the person having power to appoint an officer in that Department to exercise that power or perform that function may, by writing under his hand delivered to the first-mentioned person, terminate the authority conferred on the first-mentioned person by sub-section (4). "(6) Where the Minister gives a direction under sub-section (1)— (a) he shall furnish a copy of the direction to the Auditor-General; and (b) he shall include particulars of the direction in the statement prepared in accordance with sub-section 50(1) for the year in relation to which the direction is given.". Payments made after close of financial year 28. Section 36 of the Principal Act is amended— (a) by omitting "Every appropriation" and substituting "Subject to sub-section (2), every appropriation"; and (b) by omitting the proviso and substituting the following sub-section: "(2) Where moneys appropriated out of the Consolidated Revenue Fund for the service of a financial year have been advanced to an accounting officer for the purpose of making payments for purposes of a kind declared by the regulations to be purposes to which this sub-section applies, the moneys so advanced shall be, and shall be deemed to have been, available for making those payments notwithstanding that the financial year closed before the payments were completed, and, for that purpose, the appropriation, whether the financial year closed before or after the commencement of this sub-section, shall be deemed not to have lapsed.". Refunds from Consolidated Revenue 29. Section 37a of the Principal Act is amended by omitting from paragraph (a) "received by the Commonwealth and". Heading to Part VI 30. After the heading to Part VI of the Principal Act the following heading is inserted: "Division 1—Audit and Inspection of Accounts". Banker to forward bank statements and certificates to Minister and Auditor-General 31. Section 38 of the Principal Act is amended by omitting "moneys forming part of the Commonwealth Public Account" and substituting "public moneys". 32. Sections 39 and 40 of the Principal Act are repealed and the following section is substituted: Accounts and records "40. The Minister shall cause to be kept proper accounts and records of receipts of, and payments out of, public moneys complying with the provisions of this Act and of the regulations concerning the manner in which those accounts and records are to be kept.". Audit 33. Section 41 of the Principal Act is amended— (a) by omitting "returns, cash sheet statements, accountable receipts, accounts and receipts sent or made available to him" and substituting "accounts and records kept in accordance with section 40"; and (b) by adding at the end thereof the following sub-section: "(2) The Minister shall cause to be made available to the Auditor-General such records as the Auditor-General requires for the purpose of carrying out an audit under sub-section (1).". Auditor-General to examine accounts of revenue 34. Section 41a of the Principal Act is amended by adding at the end thereof "or a prescribed authority". Special operations of departments 35. Section 41d of the Principal Act is amended by omitting from sub-section (2) "books, vouchers and papers" and substituting "records". Auditor-General to question matters 36. (1) Section 42 of the Principal Act is amended by omitting from sub-section (1) "and call for such accounts vouchers statements documents and explanations as he may think necessary" and substituting ", and call for such accounts, records, information and explanations as he may think necessary for the purpose of exercising his powers or performing his functions under this Act". (2) Section 42 of the Principal Act is amended by omitting sub-sections (2), (3) and (4). Repeal of sections 43 and 44 37. Sections 43 and 44 of the Principal Act are repealed. Inspection and audit of books and accounts 38. Section 45 of the Principal Act is amended by omitting from sub-section (1) "books and accounts" and substituting "accounts and records". Repeal of sections 46, 47 and 48 39. Sections 46, 47 and 48 of the Principal Act are repealed. 40. Before section 49 of the Principal Act the following sections and headings are inserted in Part VI: "Division 2—Efficiency Audits Interpretation "48a. (1) In this Division, unless the contrary intention appears— 'Commonwealth organization' means— (a) the Defence Force; (b) the Commonwealth Teaching Service; (c) the Australian Security Intelligence Organization; (d) the Commonwealth Police Force; or (e) the Police Force of the Australian Capital Territory; 'eligible incorporated company' means an incorporated company over which the Commonwealth is in a position to exercise control; 'public authority of the Commonwealth' means an authority or other body that, or a person holding, or performing the duties of, an office or appointment who, is a public authority of the Commonwealth for the purposes of this Division by virtue of section 48b; 'relevant body' means— (a) a Department; (b) a public authority of the Commonwealth; (c) a Commonwealth organization; (d) an eligible incorporated company with which an arrangement has been made under sub-section 48c(2); (e) a body referred to in sub-section 48c(4); (f) a body responsible for the administration of a fund referred to in sub-section 48c(6); (g) a body referred to in sub-section 48c(7); or (h) a person or persons (not being a person who constitutes, or persons who constitute, a public authority of the Commonwealth)— (i) responsible for the administration of a fund referred to in sub-section 48c(6); or (ii) referred to in sub-section 48c(7). "(2) For the purposes of this Division— (a) operations carried on by persons employed under the Naval Defence Act 1910 by virtue of their employment (other than operations carried on by persons employed in offices or appointments in, or as members of, the Australian Navy by virtue of their employment) shall be deemed to be carried on by the Department of Defence; (b) operations carried on by persons employed under section 10 of the Supply and Development Act 1939 by virtue of their employment shall be deemed to be carried on by the Department of Productivity; (c) operations carried on by Trade Commissioners and Assistant Trade Commissioners of the Commonwealth by virtue of their appointments shall be deemed to be carried on by the Department of Trade and Resources; and (d) the Auditor-General's Office shall be deemed not to form part of a Department. Public authorities of the Commonwealth "48b. (1) Subject to this section, where— (a) the accounts and records of financial transactions of an authority or other body established for a public purpose by, or in accordance with the provisions of, an enactment are audited by the Auditor-General, whether in pursuance of an enactment or otherwise; or (b) the staff required for the purposes of an authority or other body so established are persons employed under the Public Service Act 1922, the authority or other body is a public authority of the Commonwealth for the purposes of this Division. "(2) Sub-section (1) does not apply to an unincorporated body, being a Board, Council, Committee, Sub-Committee or other body established for the purpose of assisting, or performing functions connected with, a Department or public authority of the Commonwealth, but the operations of the Board, Council, Committee, Sub-Committee or other body shall, for the purposes of this Division, be deemed to be the operations of that Department or public authority of the Commonwealth. "(3) Subject to this section, a person— (a) holding, or performing the duties of, an office or appointment established by an enactment (not being an office in the Australian Public Service); or (b) holding, or performing the duties of, an appointment, being an appointment made by the Governor-General, or by a Minister, otherwise than under an enactment, is a public authority of the Commonwealth for the purposes of this Division. "(4) Sub-section (3) does not apply to— (a) a person who holds an office of— (i) Minister of State of the Commonwealth; (ii) Justice or Judge of a Court created by the Parliament; (iii) President, Deputy President or Commissioner of the Commonwealth Conciliation and Arbitration Commission; (iv) Public Service Arbitrator or Deputy Public Service Arbitrator; (v) President, Deputy President or other member of the Administrative Appeals Tribunal; (vi) magistrate or coroner of the Australian Capital Territory; or (vii) member of the Australian Capital Territory Legislative Assembly or member of the Legislative Assembly for the Northern Territory; (b) a person who holds, or is performing the duties of, an office of Commonwealth Ombudsman or Deputy Commonwealth Ombudsman; or (c) a person required or authorized by the Governor-General, by Commission, to inquire into and report upon any matter. "(5) Sub-section (3) does not apply to— (a) an office of member of an authority or other body (including a Commonwealth organization); or (b) an office established by an enactment for the purposes of a public authority of the Commonwealth or of a Commonwealth organization, but any operation carried on by or on behalf of the holder of the office, being an operation included within the functions of the office, shall, for the purposes of this Division, be deemed to have been carried on by that authority or other body or by that Commonwealth organization, as the case may be. "(6) Where a person who holds an office or appointment referred to in sub-section (3) also holds an office in a Department and performs the functions of the first-mentioned office, or of the appointment, in association with his functions as the holder of that office in that Department, sub-section (3) does not apply to him, but any operations carried on by him within the functions of the first-mentioned office, or of the appointment, shall, for the purposes of this Division, be deemed to have been carried on by that Department. Auditor-General to carry out efficiency audits "48c. (1) The Auditor-General may carry out, at such intervals as he thinks fit, an efficiency audit of all or any of the operations— (a) of a Department; (b) of a public authority of the Commonwealth; or (c) of a Commonwealth organization. "(2) A Minister may by writing under his hand, or the Parliament may by resolution of both Houses of the Parliament, request the Auditor-General to carry out efficiency audits of all the operations, or of specified operations, of an eligible incorporated company, and, where the Minister or the Parliament does so, the Auditor-General— (a) may make arrangements with the company for the carrying out by him of efficiency audits of all the operations of the company, or of the operations of the company so specified, as the case requires; and (b) may, in accordance with arrangements so made, carry out, at such intervals as he thinks fit, an efficiency audit of all or any of the operations of the company to which the arrangement relates. "(3) An arrangement made by the Auditor-General with an eligible incorporated company— (a) may include provision for the payment of fees by the company to the Commonwealth in respect of the carrying out of efficiency audits of operations of the company to which the arrangement relates; and (b) may be varied or revoked by the Auditor-General or the company— (i) in the case of an arrangement made at the request of a Minister—with the approval of a Minister; or (ii) in the case of an arrangement made at the request of the Parliament—with the approval of the Parliament given by resolution of both Houses of the Parliament. "(4) A Minister may, subject to sub-section (5), by instrument in writing, request the Auditor-General to carry out efficiency audits of the operations of a body (not being a public authority of the Commonwealth) established by, or in accordance with the provisions of, an agreement between the Commonwealth and a State, or between the Commonwealth and 2 or more States, and the Auditor-General may then carry out, while the instrument is in force and at such intervals as he thinks fit, an efficiency audit of all or any of the operations of the body. "(5) A Minister shall not request the Auditor-General to carry out efficiency audits of the operations of a body referred to in sub-section (4) unless the State concerned has consented, or the States concerned have consented, to the Auditor-General carrying out those audits. "(6) Where the Auditor-General audits the accounts and records of a fund established by or under an enactment, not being a fund administered by, or established for the purposes of, a public authority of the Commonwealth— (a) if the Auditor-General is required to audit those accounts and records by an enactment—the Auditor-General may carry out, at such intervals as he thinks fit, an efficiency audit of all or any of the operations of the body or persons responsible for the administration of the fund, being operations related to the administration of the fund; or (b) in any other case—a Minister may, by instrument in writing, request the Auditor-General to carry out efficiency audits of the operations of the body or persons responsible for the administration of the fund, being operations related to the administration of the fund, and the Auditor-General may then carry out, while the instrument is in force and at such intervals as he thinks fit, an efficiency audit of all or any of those operations. "(7) Where the Commonwealth, or a public authority of the Commonwealth, pays moneys to a body (not being a State, a public authority of the Commonwealth or an authority of a State) or to a person, by way of financial assistance to the body or person, a Minister may, with the consent of the body or person, request the Auditor-General, by instrument in writing, to carry out efficiency audits of the operations of the body or person in the carrying out of which those moneys have been, are being or are to be applied, and the Auditor-General may then carry out, while the instrument is in force and at such intervals as he thinks fit, an efficiency audit of all or any of those operations. "(8) For the purposes of sub-section (7), where a body or person accepts any moneys paid to it or him by the Commonwealth, or by a public authority of the Commonwealth, by way of financial assistance, on condition that the body or person will permit the Auditor-General to carry out efficiency audits of the operations of the body or person in the carrying out of which those moneys have been, are being or are to be applied, the body or person shall be deemed to have given its or his consent to the carrying out by the Auditor-General of efficiency audits of all or any of those operations. Efficiency audit extends to examination of certain procedures "48d. Where moneys are paid in accordance with the provisions of an enactment— (a) by the Commonwealth to a State, by way of financial assistance, on condition that— (i) the State will apply the moneys for a purpose specified in the enactment; or (ii) the State will pay the moneys to another body for application by that body for a purpose specified in the enactment; or (b) by the Commonwealth to a body other than a State or a public authority of the Commonwealth, by way of financial assistance, on condition that the body will apply the moneys for a purpose specified in the enactment, an efficiency audit of the operations of the Department or public authority of the Commonwealth responsible for the administration of the grant of that financial assistance may include an examination of the procedures that are being followed by that Department or authority for the purpose of assessing the extent to which the operations in the carrying on of which the moneys are required to be applied are being carried on in an economical and efficient manner. Investigations and access to premises and records "48e. (1) An efficiency audit of operations of a relevant body shall be conducted by the Auditor-General, subject to this Act, in such manner as the Auditor-General thinks fit. "(2) Without limiting the generality of sub-section (1)— (a) an efficiency audit of operations of a relevant body may be carried out in conjunction with, and as part of, an inspection and audit of the accounts of the body that is being carried out by the Auditor-General under this Act or under another Act; and (b) any information obtained by the Auditor-General, in the course of carrying out an inspection and audit of the accounts of a relevant body, whether as a result of inspecting the accounts or records of the body or otherwise, may, whether or not the Auditor-General was at the same time carrying out an efficiency audit of operations of that body, be treated as having been obtained for the purposes of carrying out such an audit. "(3) Without prejudice to the powers conferred on the Auditor-General by any other provision of this Act, the Auditor-General or an authorized person shall, at all reasonable times, have full and free access to all records in the possession of— (a) a relevant body; (b) a person employed by, or under the control of, a relevant body; (c) a person employed as a member of a Commonwealth organization; or (d) any other person, being records relating, directly or indirectly, to operations that have been, or are being, carried on by a relevant body or to procedures that have been, or that are being, followed by a relevant body for reviewing any such operations, and may make a copy of, or take extracts