CEI 4.2 Receipting and Custody of Public Money

1. Scope of these instructions

These Chief Executive's Instructions (CEI) outline the policy on the receipting and custody of public money. Additional information on this CEI is available in the document All about Receipting and Custody of Public Money and supporting finance procedures.

2. Policy principles

  • proper care and custody of public money is fundamental to maintaining the integrity of our financial management and accountability framework
  • safekeeping of public money is the personal responsibility of custodians of public money.

3. Target audience

This CEI is applicable to all officials in the department of Agriculture Fisheries and Forestry (the department).

4. Departmental instructions

4.1. Responsibilities

Officials must:

  • provide all public money to a Collector of Public Money (CPM) when collecting public money on behalf of the department
  • ensure public money is kept secure at all times
  • not combine public money with private money
  • keep proper records of all public money received or held.

A Collector of Public Money must:

  • ensure public money is only deposited into, or withdrawn from, an official bank account
  • generate an official receipt when payment is received
  • keep official receipt books
  • safeguard public money collected until deposited in an official bank account
  • report any loss or deficiency of public money as soon as possible
  • bank public money as soon as practicable.

Cash advance holders must:

  • hold a valid drawing right
  • ensure public money is kept secure at all times
  • not combine public money with private money
  • not combine cash advance floats with CPM collections, where applicable
  • keep proper records of all public money received or held
  • have Chief Finance Officer approval for their cash advance.

Supervisors must:

  • conduct random independent reviews of the receipting/banking
  • conduct random reviews of cash advances
  • notify discrepancies immediately to the Accounts Receivable Manager.

4.2. Drawing Rights

  • are issued, amended or revoked by the Chief Finance Officer
  • are required for cash advance holders to make payments from the department's official bank accounts
  • provide the statutory mechanism to control the payment of public money.

4.3. Allocated Officials and Outsiders

  • When performing a financial task on behalf of the department, an individual becomes an allocated official of the department under Financial Management and Accountability (FMA) Regulation 4(1)(a)
  • An outsider is not regarded as a departmental official and subsequently for the purposes of section 12 of the Financial Management and Accountability Act 1997 (FMA Act) may not enter into an agreement or arrangement for the receipt, custody or payment of public money. Only the Secretary and the Chief Finance Officer may provide section 12 delegation to outsiders.

4.4.Record keeping

Accounts and records relating to the receipting and custody of public money are to be maintained in accordance with section 48 of the FMA Act and retained by the department in accordance with the requirements of the Archives Act 1983, generally this is for a period of seven years.

5. Breaches

  • Officials are bound by the APS Code of Conduct under section 13 of the Public Service Act 1999 and section 44 of the FMA Act to use Commonwealth resources in an efficient, effective, economical and ethical manner. Officials who do not comply with this CEI may be found to be in breach of these requirements and sanctions may apply.
  • Breaches of the FMA Act are reportable to the Department of Finance and Deregulation in the FMA Certificate of Compliance.

6. References

6.1. Legislation

6.2.External guidance/instruction

  • Finance Circular 2011/05 – Chief Executive's Instructions
  • Finance Circular 2008/07 – Relevant Agency Receipts"
  • Finance Circular 2009/07 – Issuing and Exercising Drawing Rights

6.3. Internal guidance/instruction

  • Finance Policies on MyLink
  • Corporate Finance training

6.4. Related CEIs

  • CEI 1.6 – Recordkeeping
  • CEI 4.1 – Official bank accounts
  • CEI 6.1 – Care and custody of public property

7. Definitions

allocated official
an outsider who performs a financial task on behalf of the department, are known as allocated officials.
cash advance holder

means an official who has custody of an official cash advance to:

  1. cash cheques drawn on an official bank account;
  2. give change in connection with the receipt of public money;
  3. make payments of minor amounts in the nature of running costs; or
  4. commence operation of, or to replenish, another official advance
chief executive
unless a contrary meaning is specified (as can occur under some legislation) this term means the Secretary, Department of Agriculture, Fisheries and Forestry
Collector of Public Money (CPM)
means an official designated to collect, receipt and bank public money
custody

means a person has custody of public money if:

  1. the person holds the money by way of a petty cash advance, float, or other advance; or
  2. the person has received the money, but has not yet dealt with it eg banked it
drawing rights
an official must have a drawing right under section 27(1)(a) of the FMA Act to be able to make a payment of public money and use of appropriation
financial task
means a task or procedure relating to the commitment, spending, management or control of public money. It does not include a task or procedure performed by an outsider under an agreement or arrangement authorised under section 12(1) of the FMA Act for the receipt, custody or payment of public money
official
in this CEI the term means a person who is in or forms a part of this agency. The term is also extended to mean officials from other Commonwealth, state or territory government who are performing tasks or procedures for or on behalf of the department
official bank account
means an account with the word "official" in the name and is only used for the receipt, custody, payment and transmission of public money
outsider
means any person other than the Commonwealth, an official, allocated official or a minister eg Salary Masters.
public money
  1. money in the custody or under the control of the Commonwealth; or
  2. money in the custody or under the control of any person acting for or on behalf of the Commonwealth in respect of the custody or control of the money

including such money that is held on trust for, or otherwise for the benefit of, a person other than the Commonwealth

It includes cash, cheques, money orders, authorised credit card vouchers, instructions involving funds transfer (credit card and EFTPOS transactions) and the balance of any official bank account held for the credit of the department
secretary
means the Secretary, Department of Agriculture, Fisheries and Forestry and is sometime referred to as the Chief Executive
supervisor
means an official appointed to provide an independent review that the daily receipting/banking is reconciled and accounted for

Change History

Created
May 2011
Revised
previously CEI 8
Document Owner
Accounting & Operations Branch
Corporate Finance Division
Date of Approval
17/05/2011
Document due to be reviewed by
April 2013
Last reviewed:
10 Aug 2011
Contact:
Email Finance and Business Support
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