Opinion Number. 517

Subject

DEBTS OWING BY COMMONWEALTH AUTHORITY FOR PAYMENT TO BANK ACCOUNT: SUFFICIENCY OF RECEIPT GIVEN BY AUTHORISED BANKER OR BY REMITTING BANKER

Key Legislation

AUDIT ACT 1901-1912. s. 34

Date
Client
The Auditor-General

The Auditor-General has asked for my opinion as to the sufficiency of the deposits made in connection with two vouchers forwarded by him.

In the case of one voucher, No. C. 255, Donald J. Cameron, f 56.2.0, authorised by 'Order No. 1', at the back of the voucher, to be paid to the account of the claimant at the Bank of New South Wales, St Arnaud, the amount was paid, upon a 'Remitting Warrant', into the Commonwealth Bank of Australia, Melbourne, for credit of 'Donald J. Cameron (New South Wales, St Arnaud)'.

In the case of the other voucher, No. F. 123, Donald Ferguson, £53.10.4, author-ised to be paid to the claimant's account at the National Bank of Australasia, Malvern,payment was made on Bank 'Credit' form to the National Bank of Australasia Lim-ited, Melbourne, for credit to the claimant at the Malvern Branch of that bank.

Section 34 (6) of the Audit Act 1901-1912 is as follows:

(6) Except as hereafter provided at the time of paying any account every accounting officer shall obtain a receipt under the hand of the person to whom the same is payable or under the hand of some person or banker authorised in writing by such first-mentioned person for the amount so paid which shall always unless otherwise directed by the Treasurer be set out in words at full length.

As regards voucher No. C. 255, Donald J. Cameron, in my opinion the payment to the Commonwealth Bank of Australia, for credit of Cameron (New South Wales, St Arnaud), was not a compliance with sub-section (6) of section 34 of the Audit Act; be-cause the receipt of the Commonwealth Bank was not a receipt by a person or banker authorised by the claimant.

In the case of the other voucher, No. F. 123, Donald Ferguson, the payee authorised the amount of the account to be paid to his account at the National Bank of Australasia at Malvern. Payment was made at the head office of the National Bank of Australasia in Melbourne 'For credit of Donald Ferguson with the Malvern Branch of the National Bank of Australasia Limited', and a bank credit form, to that effect, signed by the teller, and stamped with the bank stamp, is attached to the voucher. In my opinion, this was a compliance with sub-section (6) of section 34 of the Audit Act. The payment was made to the Bank authorised by the claimant for credit to his account at the Branch mentioned by him, and the receipt of the Bank was obtained.(2)

[Vol. 11, p. 427]

(1)This date is derived from the Parliamentary Papers(See endnote(2))

(2)This opinion was published in Commonwealth of Australia, Pari. Papers 1914-1917, Vol. Ill, p. 1309.