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The Pamphlet Collection of Sir Robert Stout: Volume 47

Audit of Public Accounts

Audit of Public Accounts.

Chap. 7.—The Act is made applicable to all persons in any way employed In the collection of the revenue or expenditure of public moneys. Their number is to be determined by the Governer in Council, their salaries by the Civil Service Act and annual votes of Parliament. They are to receive no fees nor any allowances except actual disbursements and shares of forfeitures. Those who have salaries of $,000 and upwards, must not pursue any other avocation, or hold any other office. Nor can any person regularly employed In collection of the revenue be compelled to serve in any other public or municipal office, on any jury or in the militia. All are to take an oath of office to perform their duty, and not receive any fee, perquisite or reward, other than allowed by law. The G. in C. divides the country into ports, districts. &c., and makes regulations to govern them. A paper purporting to be an Order in Council, and to be printed by the Queen's printer, or if written, to be signed by the Clerk of the Privy council, is proof of such O. in C. Any officer employed on any duty by order or with concurrence of the G. in C. is to be deemed the proper officer to discharge it, and the place where any act is performed with such concurrence or order Is to be held to be the proper place. The G. in C. prescribes office hours and these are to be posted in all offices. An Auditor General is to be appointed to hold office during good behaviour—salary $3,200 per annum. And the G. in C. provides him with such clerks, &c., as may be necessary, salaries subject to Civil Service Act and Votes. Superannuation Acts also apply to officers of audit, subject to approval of Treasury Board; the Auditor General makes rules for his office, and for the guidance of principal and sub-accountants in rendering their accounts. The Treasury Board consists of the Minister of Finance, Chairman, the Minister of Customs, the Minister of Inland Revenue and Receiver General Provision is made for the appointment of a Deputy of the Minister of Finance, who is to be also Secretary of the Treasury Board. He is, among other duties, to keep the accounts with the financial agents of the Government, countersign and keep a record of all debentures issued and cancelled, and generally to keep the public accounts of the Dominion. All returns from corporate bodies are to be sent in to him. with the Auditor General he examines and cancels all debentures, Dominion notes, &c., which have been redeemed. The Treasury Board, subject to approval of G-in C., prescribes the manner in which official accounts are to be kept, as well as statistical records. All moneys collected are to be paid in to the credit of the Receiver General, under such regulations as the G in C. may make. Accounts must be rendered and payments made at least once each month. The M. of C., M. of I. R, P. M. G. and officers employed under them must pay in the gross revenues to banks indicated, and daily accounts are to be rendered, and cash accounts are to be written up dally. In places where there is no bank other arrangements may be made.

The Governor General issues his order countersigned by a member of the Treasury Board, to the Minister of Finance, directing him to pay, out of moneys at the credit of the Receiver General, any money voted by Parliament, to be applied for the purpose of such vote. On application of the Auditor General the M. of F. issues credits, out of moneys for which warrants have issued, to the Departments or persons charged with expenditure of such votes, upon a bank or banks page 78 in which Government moneys are deposited. A statement in duplicate of the sums so drawn and expended with the cheques are to be rendered at least monthly to the Auditor General and M. of F.; and the Auditor being satisfied of the correctness of such accounts, the M. of F. issues cheques countersigned by the Auditor General in favour of the banks which have made the advances, to re-imburse them. The Auditor General must see that no cheque issues in excess of the vote or of that part of it for which the G. G's warrant has issued, and must report any person spending more than authorized or for purposes not contemplated in vote or warrant. No cheque may issue without certificate of parliamentary authority by the Auditor General, except on the opinion of a law officer of the Crown that it may legally issue, or in case of an accident to a public building or work, requiring immediate repair or of an emergency arising not foreseen by Parliament. In the former case the Minister acts upon the legal opinion, in the latter the G. in C. authorizes a special warrant which the G. G. signs. If for any other reason than lack of Parliamentary authority the Auditor General refuses to certify for a cheque, appeal is made to the Treasury Board, who may overrule or sustain his opinion. A statement of all sums so paid is to be furnished to the M. of F. and laid before Parliament by the third day of the next Session. Vouchers for payments must be accompanied by the certificate of the spending officer that the work has been performed or articles delivered and that the price is according to contract or, if not contracted for, is fair and just. The Financial year is from 1st July to next 30th June, both inclusive. All unexpended balances of appropriation are written off on 1st July unless before 1st August, an O. in C. extends the credit for three months or less. The M. of F. prepares and submits before 31st Oct., in each year, accounts of all issues of moneys from the C. R. F., during the year ending 30th June previous, and the Auditor General audits and reports on them to the M. of F. with respect to Parliamentary authority, &c., and the accounts and report are laid before Parliament on or before next 31st January, or within a week after it assembles. The Deputy M. of F. prepares the public accounts to be countersigned by the Auditor General and laid before Parliament by the M. of F. The several departments prepare, under instructions from the Treasury Board, accounts of the use of moneys voted and intrusted to them for expenditure before 31st October, and send them in to the D. M. of F. and Auditor General, to be severally audited and certified by the Auditor General or officer appointed by him and also laid before the House of Commons as "appropriation accounts." They must be accompanied by a balance sheet or statement showing the unexpended balances and their disposal. Also a statement respecting the unexpended balances from last account. Their accounts are first audited and certified by the Deputy Heads of departments or officers intrusted with the expenditure. The Treasury Board may, if found expedient, alter the times of making up accounts. The Auditor General examines these appropriation accounts and reports on them on behalf of the House of Commons, seeing that there are proper receipts and vouchers and proof mat the moneys have been applied to the purposes contemplated by the Parliamentary vote. He may be required by the M. of F. to examine any account, and if he reports the moneys expended for a purpose not so authorized it is not charged against the vote but specially reported to the House of Commons. The Auditor General has free access to the books of the several departments and may require statements of cash transactions from time to time as may be deemed necessary. If the manner of accounting by any Department is found unsatisfactory the Auditor General reports to the Treasury Board, who order any necessary amendments of entries. The Auditor General must report to the H. of C. all cheques issued without his certificate, all casein which grants have been exceeded, or where moneys received from other sources than the grant for the year have not been properly expended or accounted for, or where there are not proper vouchers, or other irregularity. If M. of F-does not present his report to the H of C. in the prescribed time, the Auditor General must present it himself. He must also audit, when required by the M. of F. under regulations of Treasury Board, accounts of all receipts on behalf of the C. R. F., the accounts with the banks and financial agents, of the issue and redemption of loans, those with the Indian tribes, with the several Provinces, with the Imperial Government, or any other with which the Treasury Board have to deal. All persons receiving Government moneys may be required by the M. of F. or the Treasury Board to render accounts to the Auditor General. In these latter cases, however, a power of revision of the Auditor General's work is given to the M. of F. A statement of all such accounts examined and passed is to be laid before the Treasury Board twice a year.

The Auditor General furnishes any party accounting, with a statement showing if he be "even and quit" or what balance is due from him.—and, when a balance is shewn to be due, time is to be given the accountant to satisfy him that he has discharged the full amount of the balance or has been relieved from the payment by O. in C. on report of the Treasury Board. On the examination of any securities. &c., in hands of an accountant—the Auditor General reports to the M. of F., and when approved by him a certificate issues to such accountant which is a full discharge. He may examine any person upon oath or affirmation respecting his accounts, and may obtain subpoenas from the Supreme, Exchequer or Provincial Superior Courts to compel attendance of witnesses and production of documents. He may also issue commissions to take evidence. A witness not obeying subpoenas to attend and give evidence before the Auditor General or such Comr., forfeits $100 for each offence, and may further be dealt with for contempt by the court issuing the writ. The Auditor General must report any balances improperly retained by any accounting officer or his representatives, to the M. of F., in order that legal proceedings may be taken. Any person not banking amounts at the proper time forfeits $100. Whenever the M. of F. has reason to believe that moneys page 79 received by an accounting officer have not been properly accounted for or paid ever, he gives him or his representatives notice to pay over or account for the sum within a reasonable time fixed by the notice. If he neglects or refuses, he states an account against him charging interest from date of service of notice, and legal proceedings are thereupon to be taken for the recovery of the amount, the statement being primâfacie proof against the accountant. And similar proceedings may be had when an account has been furnished but not accompanied by proper vouchers,—only those items for which vouchers have been furnished being allowed in the statement of the M. of F. Whenever it appears by the accounts, books or acknowledgment of the accountant, that he has received moneys and not paid them over or accounted for them, a suit may issue from any competent court, to seize and sell his goods, chattels and lands, as if his bond had been sued upon and Judgment obtained. The purchaser of such property is not liable for any balance of the accountant's indebtedness after payment of the purchase money. A person intrusted with money to be applied to a certain purpose, and not having so employed it, is, or his representatives are responsible in like manner to the Crown, and pending its recovery other moneys may be applied to the purpose. If through gross negligence or malfeasance of any officer money is lost to the Grown, such officer is in like manner responsible. The right to recover Government moneys by other proceedings is not taken away.

Any revenue officer receiving other than legal compensation for performance of duty conspiring with or making opportunity for another to defraud the Crown, or permitting a violation of the law, making false entry in books or a false certificate or return, having knowledge of fraud or violation of revenue law and not reporting it, or accepting or attempting to collect a reward for condoning or compromising a violation of the law, shall be dismissed and be liable to a fine of and imprisonment for a year. Any person giving or offering, directly or indirectly, a bribe to a revenue officer to influence his decision or induce collusion at fraud, and any officer accepting, are liable for three times the amount and inprisonment for a year; the officer to be dismissed and on conviction disqualified from again serving the Crown. Any revenue officer becoming interested in a manufacture of excisable articles or trading in them is liable to a penalty of $50 to $500. All official books, papers and documents used and kept by a revenue officer as such are the property of Her Majesty, by whomsoever bought and paid for, as are all moneys and valuable securities in his hands by reason of his office. And if he embezzles them—keeping them after delivery or payment is demanded by the proper officers being held to be embezzlement he is liable for the theft as others guilty of embezzlement from masters or employers are. Other proceedings against the defaulting officer or his sureties are not diminished.

Oaths in proceedings respecting: the revenue may be administered by the chief officer of Customs at any port, or any person specially named by the G. G. for the purpose, and the G. in C. may substitute affirmations or declarations for such oaths. In all enquiries respecting the management, collection and accounting for the revenue, evidence is to be taken under oath—persons swearing, affirming or declaring falsely being guilty of perjury and punishable accordingly. An accountant may appeal from the Auditor General to the Treasury Board whose decision is final and binding.

Permission is made for the conditional or unconditional remission or partial remission by the G. in C. of duties, tolls, fines and forfeitures, before or after recovery of the same at law or collection under execution. But no return of duties may be made upon goods destroyed, after payment, by fire or other accident. If a condition of remission is not fulfilled it may be enforced, or proceedings taken as If there had been no remission. All remissions must be upon report of the Treasury Board approved by O. in C. Detailed statements of them must be submitted to Parliament within 15 days of its next meeting. A remission of penalty has the effect of a pardon of the offence committed. The Attorney General for Canada may, in Her Majesty's name, bring suits for the recovery of any penalty under Revenue and Audit Acts and order their discontinuance by whomsoever brought. In the former case the whole penalty goes to the Crown, unless it sees fit to allow a portion to seizing officer.