AUDIT.
No. 74 of 1962.
An Act relating to Repayments of Amounts out of the Commonwealth Public Account.
[Assented to 10th December, 1962.]
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 1962.
(2.) The Audit Act 1901-1961 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 1901-1962.
Commencement.
2. This Act shall be deemed to have come into operation on the first day of July, One thousand nine hundred and sixty-two.
3. Section thirty-seven a of the Principal Act is repealed and the following section inserted in its stead:—
Refunds from Consolidated Revenue Fund.
“37a. Where—
(a) an amount has been received by the Commonwealth and paid into the Consolidated Revenue Fund; and
(b) the repayment of that amount, or of a part of that amount, to any person is required or permitted by or under any Act or otherwise by law, but no appropriation of the Consolidated Revenue Fund to enable the repayment to be made is, apart from this section, made by any Act,
the Consolidated Revenue Fund is hereby appropriated to the extent necessary to make the repayment.”.
Trust Accounts.
4. Section sixty-two a of the Principal Act is amended by omitting sub-section (7.) and inserting in its stead the following sub-section:—
“(7.) Where—
(a) an amount has been received by the Commonwealth and paid to the credit of the Trust Fund; and
(b) the repayment of that amount, or of a part of that amount, to any person is required or permitted by or under any Act or otherwise by law,
the repayment may be made from moneys standing to the credit of the Trust Fund.”.
Overview
The Audit Act 1962 was enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, and came into operation on 1 July 1962. This Act was introduced to address the need for a formal mechanism to appropriate funds from the Consolidated Revenue Fund and the Trust Fund for the repayment of amounts when required or permitted by law, without the need for specific appropriations by other Acts. The policy objective of the Act is to ensure that repayments can be made efficiently and legally, maintaining the integrity and functionality of the Commonwealth's financial management systems. The Act amends and updates previous legislation, specifically referencing the Audit Act 1901-1961, to reflect contemporary requirements and practices in public financial management.
Scope and Application
The Audit Act 1962 applies to the Commonwealth of Australia and governs the procedures for the repayment of amounts from the Commonwealth Public Account, specifically the Consolidated Revenue Fund and the Trust Fund. This Act provides mechanisms for the appropriation of funds from these accounts when a repayment is legally required or permitted, even in the absence of a specific appropriation under another Act. The legislation ensures that funds can be allocated for such repayments, thereby facilitating compliance with legal obligations. The geographic and jurisdictional reach of this Act is national, as it pertains to the federal level of government in Australia. The Act includes provisions for the Trust Fund, allowing repayments to be made from these funds when necessary. The scope of the Act is extended through subordinate instruments, which may provide further detail or exceptions to the general provisions outlined in the primary Act.
Key Provisions
The Audit Act 1962 introduces key provisions concerning the repayment of amounts out of the Commonwealth Public Account. Section 37a of the Act addresses the appropriation of funds from the Consolidated Revenue Fund for repayments. Specifically, it states that if an amount has been received by the Commonwealth and paid into the Consolidated Revenue Fund, and if the repayment of that amount, or part of it, to any person is required or permitted by law, but there is no existing appropriation to enable such repayment, the Consolidated Revenue Fund is appropriated to the extent necessary to facilitate the repayment (section 37a). This provision ensures that funds are available for repayments even when no prior appropriation has been made.
The Act also includes amendments to trust accounts, as outlined in section 4. The Act modifies section 62a of the Principal Act by replacing subsection (7), now allowing for the repayment of amounts from the Trust Fund if those amounts have been received by the Commonwealth and paid into the Trust Fund, and if the repayment is required or permitted by law (section 4). This amendment provides flexibility in managing repayments from the Trust Fund, ensuring that such repayments can be made when necessary.
Entities and individuals governed by the Act must adhere to the outlined procedures for repayments from the Consolidated Revenue Fund and the Trust Fund. For repayments from the Consolidated Revenue Fund, entities must ensure that the conditions specified in section 37a are met, including the lack of an existing appropriation for the repayment. For repayments from the Trust Fund, entities must confirm that the conditions in section 4 are satisfied, including the receipt of funds into the Trust Fund and the legal requirement for repayment.
Breaches of the provisions outlined in the Audit Act 1962 may lead to civil or criminal consequences. For instance, misappropriating funds or failing to comply with the legal requirements for repayments could result in penalties. The specific penalties are not detailed in the provided text, but they may include fines or other legal actions depending on the severity of the breach. It is essential for entities to comply with these provisions to avoid any legal repercussions.