AUDIT.
No. 89 of 1961.
An Act to amend the Audit Act 1901-1960.
[Assented to 27th October, 1961.]
BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation
1.—(1.) This Act may be cited as the Audit Act 1961.
(2.) The Audit Act 1901-1960 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Audit Act 1901-1961.
Commencement.
2.—(1.) Subject to the next succeeding sub-section, this Act shall come into operation on the day on which it receives the Royal Assent.
(2.) Sections three, four, twenty-one and twenty-two of this Act shall come into operation on a date to be fixed by Proclamation.
Interpretation.
3. Section two of the Principal Act is amended by inserting in the definition of “Departments”, after the word “includes”, the words “Departments of the Parliament and”.
4. After section two of the Principal Act and before the heading “Auditor-General” the following section is inserted:—
Application of Act.
“2a.—(1.) This Act extends to every Territory of the Commonwealth, but does not apply to or in relation to revenues, moneys or stores of a Territory that does not form part of the Commonwealth or the operations of the administration of, or persons in the service of, any such Territory in relation to the receipt, expenditure or control of any such revenues, moneys or stores.
“(2.) Subject to any modifications and exceptions specified in directions given in pursuance of section sixty-three of this Act, this Act applies outside Australia and the Territories of the Commonwealth to and in relation to every person who is or has been employed in the service of the Commonwealth, whether or not he is an Australian citizen, and the functions, powers, duties and responsibilities conferred or imposed by this Act on the Treasurer, the Auditor-General and other specified persons and authorities in relation to persons who are or have been so employed, and in relation to public moneys and other matters provided by this Act, are exercisable or shall be performed accordingly.
“(3.) The provisions of this Act do not apply to or in relation to affairs and transactions (including the receipt or expenditure of money) in relation to the Parliamentary Refreshment Rooms except affairs or transactions involving the expenditure of moneys for the purpose of which the Consolidated Revenue Fund has been appropriated.”.
Appointment of acting Auditor-General.
5. Section nine of the Principal Act is amended by omitting sub-section (2.) and inserting in its stead the following subsection:—
“(2.) On the first occasion on which a person is appointed under this section, he shall, before exercising the powers and performing the duties of the Auditor-General, make and subscribe before the Executive Council a declaration in the…
Overview
The Audit Act 1961 was enacted to amend the Audit Act 1901-1960, addressing gaps in the original legislation by providing further clarifications and updates to the auditing process within the Commonwealth of Australia. The Act was assented to on 27 October 1961 by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. This amendment aimed to modernise the auditing framework and enhance the accountability of public finances by introducing new provisions and modifying existing ones to align with contemporary administrative practices. The policy objective was to ensure that the auditing processes were comprehensive, transparent, and effectively managed to maintain public trust and confidence in the Commonwealth's financial operations.
Scope and Application
The Audit Act 1961 applies to every Territory of the Commonwealth, with specific exclusions for revenues, moneys, or stores of a Territory that do not form part of the Commonwealth, and operations concerning such territories. Additionally, the Act extends to all persons employed in the service of the Commonwealth, regardless of their location or citizenship, and encompasses the functions, powers, duties, and responsibilities of the Treasurer, the Auditor-General, and other specified persons and authorities with respect to such persons and public moneys. Notably, the Act does not apply to affairs and transactions in relation to the Parliamentary Refreshment Rooms, except those involving the expenditure of moneys for which the Consolidated Revenue Fund has been appropriated. The Act's jurisdictional reach is further extended through subordinate instruments, which can provide specific directions for various Commonwealth operations outside Australia and its territories. These regulations can include detailed instructions for the collection, receipt, custody, expenditure, and management of public moneys, as well as the purchase, custody, and disposal of Commonwealth property, and the execution of works and supply of services outside Australia.
Key Provisions
- The Audit Act 1961 amends the Audit Act 1901-1960, with specific sections modifying the original provisions. Section 3 of the Act amends the definition of "Departments" to include "Departments of the Parliament and". Section 2a introduces the application of the Act to various territories and employees of the Commonwealth, clarifying its scope. The appointment of an acting Auditor-General is detailed in section 5, which modifies the original subsection (2) to require a declaration before exercising powers. Section 6 broadens the Auditor-General's access to books and documents to include "person" alongside "employee". Section 7 modifies the requirement for accounting officers to send declared returns to the Auditor-General to be conditional on the Auditor-General's request. Section 8 amends the process for the Treasurer to prepare a statement of moneys required, removing certain subsections and introducing new provisions for the Auditor-General’s certificate and its consequences.
- The Act imposes several obligations on the parties it governs. Accounting officers, as modified by section 7, must send declared returns to the Auditor-General if specifically requested. The Treasurer, under section 8, must prepare a statement of moneys required and ensure its completion by the Auditor-General’s certificate. The Auditor-General has the duty to inspect, examine, and audit books, accounts, and documents as per sections 6 and 41d. Departments, as per section 41d, are required to keep accounts and prepare financial statements as determined by the Treasurer. Additionally, section 63 allows the Governor-General to issue directions for the management of public moneys and property outside Australia.
- The Act also outlines offences, penalties, and consequences for breaches. While the Act does not explicitly state penalties, it implies that failure to comply with the Act’s provisions or the directions issued under section 63 may be considered a breach of regulations. Such breaches can result in legal consequences under the applicable laws of the State or Territory where the offence was committed, as per section 70. The Judiciary Act 1903-1960 applies to offences against this Act, with specific jurisdictional provisions for courts in the States and Territories of the Commonwealth, ensuring that legal proceedings can be effectively carried out.
- Area of Law
- Administrative Law
- Instrument
- Act
- Concepts
- Commencement Provisions
- Definitions & Interpretation
- Enforcement Powers
- Reporting & Disclosure Obligations