The Treasurer:

An Order in Council has recently been procured under section 37 of the Audit Act transferring an amount of f 11.2.9 under Division 22 Subdivision 1, Appropriation (Works and Buildings) Act 1902-3 from 'Victoria-External Affairs-Incidentals' to 'Victoria-External Affairs-Repairs and Maintenance', also an amount of £10 under Division 163 Subdivision 6 from 'Travelling Expenses' to 'Incidental and Petty Cash Expenditure'.

The Auditor-General has objected to the transfers on the ground that no amount had originally been voted under the items credited.

The Treasurer desires to be advised whether the transfers were legally made.

Section 37 of the Audit Act provides that if the exigencies of the public service render it necessary to alter the proportions assigned to the particular items comprised under any subdivision in the annual supplies the Governor-General may by order direct that there shall be applied in aid of any item that may be deficient a further limited sum out of any surplus arising on any other item under the same subdivision unless such subdivision shall be expressly stated to be 'unalterable'.

My opinion is that the transfers are legal.⁽¹⁾

[Vol. 3, p. 320]

(1) This opinion was published in Commonwealth of Australia, Pari. Papers 1904, Vol. II, p. 1179.