CEI 4.1 Official Bank Accounts

1. Scope of these instructions

These Chief Executive's Instructions (CEI) outline the Department of Agriculture Fisheries and Forestry's (the department) requirements in relation to opening, maintaining and closing official bank accounts. This CEI must be read in conjunction with CEI Payment of Accounts in relation to drawing rights.

2. Policy principles

• Only officials holding a delegation under section 8(1) of the Financial Management and Accountability Act 1997 (FMA Act) may enter into agreements with any bank on behalf of the Commonwealth.
• Only officials holding a delegation under section 9(1) of the FMA Act may open and maintain bank accounts in accordance with agreements made under section 8 of the FMA Act.
• Only officials who have been issued with a valid drawing right may withdraw money from an official bank account for the purposes of depositing into another official account, establishing or reimbursing a cash advance, or paying an amount as authorised by the drawing right.

3. Target audience

This CEI is applicable to all officials (as defined in the 'Definitions' section) in the department.

4. Departmental instructions

4.1 Responsibilities

Officials:

• who receive public money, including cheques, must ensure it is banked no later than the
  next banking day or within five banking days if there is no ready access to banking facilities or the total amount collected is less than $200 (section 10 of the FMA Act refers).
• must not deposit public money into any account other than an official bank account (s11 of the FMA Act refers).
• must not enter into agreements regarding credit card or EFTPOS merchant facilities. Anyone wishing to commence or revise such an agreement must seek prior approval from the Chief Finance Officer.
• must report suspected fraud or misuse of official bank accounts to the Fraud Investigations and Security Team in Corporate Services Division.

Chief Finance Officer:

• Is to ensure that agreements entered into with any bank for the receipt, custody, payment or transmission of public money, and for the opening and maintaining of official bank accounts, comply with the requirements of the FMA Act.

4.2 Entering into agreements with banks

• Only the secretary and Chief Finance Officer may enter into agreements with banks under section 8(1) of the FMA Act.

4.3 Opening and maintaining bank accounts

• Only the secretary and Chief Finance Officer may open new bank accounts under section 9(1) of the FMA Act.
• In the interests of efficient cash management, Corporate Finance Division will regularly review all bank accounts with a view to rationalisation and efficiency, and satisfy itself of the continuing operational need for those accounts.
• Overseas bank accounts are held by the Department of Foreign Affairs and Trade (DFAT) at overseas posts and facilitate the payment and collection of receipts for DFAT and on behalf of other agencies, including the department, under third party arrangements. No other overseas bank accounts are be established by the department for similar purpose.
• The reconciliation and closing of bank accounts and banking overdraft arrangements must be approved by the Chief Finance Officer in accordance with the Finance Policies and Procedures available on Mylink.

5. Breaches

Officers are bound by the Public Service Act 1999 (section 13 Code of Conduct) and the FMA Act to use Commonwealth resources in an efficient, effective and ethical manner. Officials who do not comply with this CEI may be found to be in breach of these provisions and sanctions may apply.

6. References

6.1 Legislation

• Financial Management and Accountability Act 1997 (sections 8, 9, 10, 11 and 13)
• Financial Management and Accountability Regulations 1997 (as amended) (regulations 8, 9, 11, 17, 18, 19 and 20)
• FMA Delegations (as amended)
• Public Service Act 1999 (s13 - Code of Conduct)

6.2 External guidance/instruction

• Finance Circular 2011/05 – Chief Executive's Instructions
• Department of Finance and Deregulation, Financial Management Policy: Framework Guidance Manual.

6.3 Internal guidance/instructions

• Finance policies on MyLink

6.4 Related CEIs

• CEI No. 1.1 - Delegations and Authorisations
• CEI No. 1.2 - Fraud Control
• CEI 1.6 – Record keeping
• CEI 3.2 – Payment of Accounts
• CEI 4.2 – Receipting and Custody of Public Money

7. Definitions

Change History