STATUTORY RULES.
1926. No. 3.
LONDON ACCOUNT REGULATIONS UNDER THE AUDIT ACT 1901-1924.
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following amendment of the London Account Regulations under the Audit Act 1901-1924, to come into operation on and from the 1st July, 1925.
Dated the sixth day of January, 1926.
STONEHAVEN,
Governor-General.
By His Excellency’s Command,
EARLE PAGE,
Treasurer.
Amendment of London Account Regulations Under the Audit Act 1901-1924.
Regulation 52 is repealed and the following regulation inserted in its stead:—
“52. The Official Secretary may invest any surplus London moneys in such a manner as may be approved by the Treasurer. If the investment is made in any other manner than by placing the amount on fixed deposit with the Bank in which the Commonwealth’s current account is kept, the transaction must be recorded in a special Ledger Account.”
Printed and Published for the Government of the Commonwealth of Australia by H. J. Green, Government Printer for the State of Victoria.
C.19331.—Price 3d.
Overview
The London Account Regulations, 1926, are an amendment to the London Account Regulations under the Audit Act 1901-1924. This amendment was enacted by the Governor-General in Council to provide more flexible investment options for surplus London moneys while ensuring proper recording of such transactions. The regulations were introduced to address the need for updated investment practices while maintaining transparency and accountability in financial dealings. The policy objective is to enable the Official Secretary to invest surplus London moneys in an approved manner, with a requirement to record any non-fixed deposit investments in a special ledger account to maintain a clear and accurate financial record. This legislative instrument was made under the authority of the Audit Act 1901-1924 and came into operation on 1 July 1925.
Scope and Application
The London Account Regulations under the Audit Act 1901-1924 apply to the management of surplus funds held in the London Account, which pertains specifically to the Commonwealth of Australia's financial dealings in London. This legislation applies to the Official Secretary, who is authorised to handle investments of these surplus funds, subject to approval by the Treasurer. The scope of the Act is geographically focused on the financial activities conducted in London, with the primary concern being the proper investment and recording of the Commonwealth's surplus funds. The amendment introduced in Statutory Rules 1926 No. 3, which came into effect on 1 July 1925, specifies that any investments must be made in a manner approved by the Treasurer, with a particular requirement for recording if the investment is not placed on a fixed deposit with the bank maintaining the Commonwealth's current account in London. There are no stated exclusions, exemptions, or thresholds in the provided text, and the regulation applies strictly within the context of the Commonwealth's financial operations in London.
Key Provisions
The London Account Regulations under the Audit Act 1901-1924, as amended by Statutory Rules 1926 No. 3, introduce specific provisions regarding the investment of surplus London moneys. Regulation 52, as amended, provides that the Official Secretary is authorised to invest any surplus funds from the London Account (Regulation 52(1)). However, such investments must be made in a manner approved by the Treasurer (Regulation 52(1)). Importantly, if the investment is not made through a fixed deposit with the bank that holds the Commonwealth's current account, the transaction must be meticulously recorded in a special Ledger Account (Regulation 52(2)). This ensures transparency and accountability in the management of these funds.
The Act imposes clear obligations on the parties involved, primarily the Official Secretary and the Treasurer. The Official Secretary must ensure that any investment of surplus funds from the London Account is conducted in accordance with the Treasurer's approval (Regulation 52(1)). This requires the Official Secretary to seek and obtain the necessary authorisation before proceeding with any investment. Additionally, the Treasurer has the authority to approve the manner in which these investments are made, thereby exercising oversight over financial transactions related to the London Account (Regulation 52(1)). If the investment is not executed via a fixed deposit with the designated bank, the Official Secretary must record the transaction in a special Ledger Account, ensuring detailed documentation of such activities (Regulation 52(2)).
Failure to comply with the requirements set forth in the London Account Regulations could lead to significant consequences. While the specific provisions do not detail penalties for non-compliance, it is reasonable to infer that breaches of these regulations could result in disciplinary actions or other legal repercussions. Given the historical context, it is possible that such breaches might have been subject to the general legal frameworks available at the time, which could include civil or administrative penalties. The importance of adhering to these regulations lies in maintaining the integrity and accountability of financial management within the London Account framework.