Audit Act 1920

Legislation au C1920A00023 Not in force Act

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AUDIT.

 

No. 23 of 1920.

An Act to amend the Audit Act 1901-1917.

[Assented to 14th September, 1920.]

BE it enacted by the King’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 1920.

(2.)  The Audit Act 1901-1917 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 1901-1920.

Commencement.

2. This Act shall be deemed to have commenced on the first day of July One thousand nine hundred and nineteen.

Commonwealth Public Account.

3. Section twenty-one of the Principal Act is amended by inserting in sub-section (1.), after the word “Account”, the words “(except in so far as it consists of moneys held by the Treasurer in gold coin for the purposes of the reserve provided for in section nine of the Australian Notes Act 1910-1914)”.

4. Section twenty-nine of the Principal Act is repealed and the following section inserted in its stead:—

Payment to public account of private moneys collected by public servants.

“29. When any such money as last aforesaid shall have remained in such bank for three months, and thereafter for such period (if any) not exceeding three months as the Treasurer directs, such person shall pay the same and act in respect thereof and in regard thereto in like manner as accounting officers are required to pay and act with reference to moneys which shall come to their possession or control for or on account of the Consolidated Revenue Fund, or as near thereto as the circumstances of the case will permit; and such money shall be placed to the credit of the said Trust Fund under such separate heads as may be directed by the Treasurer.”.

Payment of accounts.

5. Section thirty-four of the Principal Act is amended—

(a) by inserting, after sub-section (6.) the following subsections:—

“(6a.) Notwithstanding anything contained in the last preceding sub-section, where an account is paid by cheque the receipt for the amount so paid may be given as prescribed.

“(6b.) Where a receipt for the payment of an account, paid by means of a crossed non-negotiable cheque, purports to be under the hand of a person authorized in writing by the person to whom the account is payable to receive payment, the receipt may be accepted without proof of the authority of the person by whom it was given to receive payment.”; and

“(6c.) Notwithstanding anything contained in sub-section (6.) of this section, it shall not be necessary to obtain receipts for the payment of salaries, wages and allowances, but a certificate in the prescribed form shall be given by the officer making the payment.”; and

(b) by omitting sub-section (7.).

6. Section forty-one of the Principal Act is repealed and the following section inserted in its stead:—

Audit of returns, cash sheet and vouchers.

“41. The Auditor-General shall audit the returns, cash sheet statements, accountable receipts, accounts and receipts received by him, and shall—

(a) ascertain whether the moneys shown therein to have been disbursed were legally available for, and applicable to, the service or purpose to which they have been applied or charged; and

(b) ascertain whether the provisions of the Constitution and of this and any other Act and the regulations relating to public moneys have been in all respects complied with.”.

Queries.

Surcharge of accounting officers.

7. Section forty-two of the Principal Act is amended—

(a) by omitting from sub-section (1.) all words after the word “necessary”;

(b) by inserting after sub-section (1.) the following subsection:—

“(1a.) Every such query and observation received by any person other than the Treasurer shall, within fourteen days after its receipt by that person, be returned by him, with the necessary reply, to the Auditor-General.”;

(c) by omitting from sub-section (2.) all words after paragraph (h), and inserting in their stead the words “the Auditor-General shall surcharge the accounting officer or other person concerned with—

(i) all sums wilfully or negligently omitted to be collected, or not duly accounted for;

(ii) any deficiency or loss; and

(iii) any expenditure not duly authorized, vouched or certified.”; and

(d) by omitting sub-sectious (3.), (4.) and (5.) and inserting in their stead the following sub-sections:—

“(3.) The Auditor-General may at any time revoke any surcharge made by him.

“(4.) All unsatisfied surcharges shall be reported by the Auditor-General to the Treasurer.”.

8. Section forty-three of the Principal Act is repealed and the following section inserted in its stead:—

Recovery by Treasurer of amount of surcharge.

“43.—(1.) The Treasurer may take such measures or proceedings as he thinks fit to recover the amount of any such surcharge and may order that no account payable to or claimed by the accounting officer or other person surcharged shall be paid until the surcharge is satisfied.

“(2.) Without prejudice to any other measures of recovery, the amount of any such surcharge may be sued for as money paid by His Majesty to the use of the accounting officer or other person surcharged, at the request of the officer or other person, as the case may be.”.

9. Section forty-five of the Principal Act, is repealed and the following section inserted in its stead:—

Inspection and audit of books and accounts.

“45.—(l.) The Auditor-General shall, at such intervals as he thinks fit, and whenever required so to do by the Treasurer, inspect, examine and audit the books and accounts of any accounting officer, and of any person charged with the custody or control of stores belonging to the Commonwealth.

(2.) The Auditor-General shall report to the Treasurer all irregularities discovered by him which, in the opinion of the Auditor-General, are of sufficient importance to be so reported.”.

10. Section forty-five a of the Principal Act is repealed and the following section inserted in its stead:—

Power to admit certain accounts.

“45a. If the Auditor-General is satisfied that any accounts bear evidence that the vouchers have been completely checked, examined and certified as correct in every respect and that they have been allowed and passed by the proper departmental officers, he may admit them as satisfactory evidence in support of the charges to which they relate.”.

Repeal of Third Schedule.

11. The Third Schedule to the Principal Act is repealed.

 

Overview

The Audit Act 1920, enacted by the King's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, aims to amend the Audit Act 1901-1917. This amendment was necessary to refine the auditing procedures and financial accountability within the Commonwealth government. The Act introduces modifications to the handling of public accounts, including the treatment of private moneys collected by public servants and the payment of accounts. Additionally, it revises the process for issuing receipts and certificates for payments, aiming to streamline financial transactions and ensure compliance with legal requirements. The policy objective of the Act is to enhance the accuracy and reliability of financial records and to ensure that public funds are managed with due diligence and transparency. The Act also addresses the role and responsibilities of the Auditor-General, clarifying the process for auditing returns, cash sheets, and vouchers, and the mechanisms for surcharges on accounting officers. Furthermore, it provides the Treasurer with the authority to recover surcharged amounts and mandates the regular inspection of books and accounts to detect and report any irregularities. The overall goal is to strengthen financial oversight and accountability within the Commonwealth, ensuring adherence to legal and constitutional provisions governing public funds.

Scope and Application

The Audit Act 1920, as amended, applies to the management and auditing of public accounts within the Commonwealth of Australia, governing the procedures and responsibilities of the Treasurer and accounting officers. It specifically outlines the roles and obligations of the Auditor-General in auditing returns, cash sheet statements, accounts, and receipts. The Act also details the process for the payment of accounts, surcharges on accounting officers for omissions or losses, and the recovery of surcharged amounts by the Treasurer. It applies to all accounting officers and public servants handling public funds, ensuring compliance with constitutional and statutory requirements. The Act's geographic and jurisdictional reach is limited to the Commonwealth, and it supersedes the Audit Act 1901-1917. Certain exclusions and thresholds may apply, particularly concerning specific types of moneys held by the Treasurer. The Act may also be extended or restricted through subordinate instruments, which are not explicitly detailed in the provided text.

Key Provisions

The key provisions of the Audit Act 1920 are primarily focused on the management and auditing of public moneys, with amendments to the existing Audit Act 1901-1917. Section 3 amends the definition of the Commonwealth Public Account by excluding moneys held by the Treasurer in gold coin for the purposes of the reserve provided for in the Australian Notes Act 1910-1914. Section 4 replaces section 29 of the Principal Act to address the payment of private moneys collected by public servants into the public account, stipulating a process for the payment and accounting of such moneys after a certain period. Section 5 makes amendments to section 34, including provisions for the acceptance of receipts for payments made by cheque or crossed non-negotiable cheque and the issuance of certificates instead of receipts for payments of salaries, wages and allowances. The obligations imposed by the Act on parties or entities it governs include the timely payment of private moneys collected by public servants into the public account as per the provisions in section 4, and the adherence to the processes for receiving and accounting for such funds. Section 6 places a responsibility on the Auditor-General to audit returns, cash sheet statements, accountable receipts, accounts and receipts, ensuring compliance with legal and constitutional requirements. Section 7 amends the surcharge provisions, requiring queries and observations to be returned to the Auditor-General within fourteen days, and establishing the Auditor-General's authority to surcharge accounting officers or other persons for various financial oversights or losses. Sections 8 to 10 outline the consequences for breaches of the Act. Section 8 allows the Treasurer to take measures to recover surcharges, including withholding payments to the surcharged parties until the surcharge is satisfied. Section 9 provides for the Auditor-General to inspect and audit books and accounts, and to report on any significant irregularities discovered. Section 10, which replaces section 45a, empowers the Auditor-General to admit accounts as satisfactory evidence if certain conditions regarding the checking and certification of vouchers are met. The penalties for non-compliance are not explicitly stated in the Act, but they may include financial surcharges, as well as administrative and legal actions taken by the Treasurer to recover surcharges.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.