Royal orders for issue of

sums granted by resolution

or Act of Par

liament for

expenses of specified pub

lic services.

Credits for ways and

means granted

(i.) Supply and Audit of Public Monies.

These matters are now regulated by "The Exchequer and Audit Departments Act, 1866" (28th June). The principal sections being as follows:

When any sum or sums of money shall have been granted 29 & 30 Vict to Her Majesty by a resolution of the House of Commons, or by c. 39, sec. 14. an Act of Parliament, to defray expenses for any specified public services, it shall be lawful for Her Majesty, from time to time, by her royal order under the Royal Sign Manual, countersigned by the Treasury, to authorize and require the Treasury to issue, out of the credits to be granted to them on the Exchequer accounts as hereinafter provided, the sums which may be required from time to time to defray such expenses, not exceeding the amount of the sums so voted or granted.

When any ways and means shall have been granted by Ibid, sec. 15. Parliament to make good the supplies granted to Her Majesty to make good by any Act of Parliament or resolution of the House of supplies Commons, the Comptroller and Auditor-General shall grant to granted by the Treasury, on their requisition authorizing the same, a credit Act or resolution. or credits on the Exchequer accounts at the Bank of England and Bank of Ireland, or on the growing balances thereof, not exceeding, in the whole, the amount of the ways and means so granted. Out of the credits so granted to the Treasury, issues shall be made to principal accountants, from time to time, on orders issued to the said banks, signed by one of the Secretaries of the Treasury, or in their absence by such officer or officers as

Issues to principal accountants

out of such

credits.

1 As to the supply of public money, and the functions of the Treasury, see Vol. II., Chap. 19. As to the audit of expenditure and the control of the House of Commons see Vol. I., c. 7, and Vol. II., c. 24. The annual Appropriation Act usually confers upon the Treasury and subordinate departments these powers:

Treasury may, If a necessity arise for incurring expenditure not provided for in the sums appro- 42 & 43 Vict. in certain priated to naval and military services by this Act, and which it may be detrimental c. 51, sec. 4. cases of exig- to the public service to postpone until provision can be made for it by Parliament ency, author- in the usual course, each of the departments entrusted with the control over the

and for the

ize expendi-
said services shall forthwith make application in writing to the Commissioners of
ture unpro-
Her Majesty's Treasury for their authority to defray temporarily such expenditure
vided for; out of any surpluses which may have been or which may be effected by the saving
provided that of expenditure upon votes within the same department, and in such application the
the aggregate department shall represent to the Commissioners of the Treasury the circumstances
grants for the which may render such additional expenditure necessary, and thereupon the said
navy services Commissioners may authorize the expenditure unprovided for as aforesaid to be
temporarily defrayed out of any surpluses which may have been or which may be
effected as aforesaid upon votes within the same department; and a statement
showing all cases in which the naval and military departments have obtained the
sanction of the said Commissioners to any expenditure not provided for in the
respective votes aforesaid, accompanied by copies of the representations made to
them by the said departments, shall be laid before the House of Commons with the
appropriation accounts of navy and army services for the year, in order that such
proceedings may be submitted for the sanction of Parliament, and that provision
may be made for the deficiencies upon the several votes for the said services in such
manner as Parliament may determine.

army services respectively

be not exceeded.

The Commissioners of the Treasury shall not authorize any expenditure which may cause an excess upon the aggregate sums appropriated by this Act for naval services and for army services respectively.

As to the necessity for this, see Vol. I., p. 118. The Ordnance Office had the power to spend any sum under 5007. upon unforeseen services, see Vol. I., p. 492 and Vol. II., pp. 188 and 764.

9 & 30 Vict.,

the Treasury may from time to time appoint to that duty; and
the services or votes on account of which the issues may be
authorized shall be set forth in such orders: Provided always,
that the issues for Army and Navy services shall be made under
the general heads of "Army" and "Navy" respectively.

All debts accruing due under any contract or lease now or Certain pay-* 39, sec. 17. hereafter entered into or taken for the public service, and pay

bid, sec. 18.

Ibid, sec. 20.

ments under contracts or

General.

able out of the supplies from time to time voted by Parliament leases to be
to Her Majesty for the public service, in any department for made by the
which the payments are made by the Paymaster-General, shall Paymaster-
be discharged and paid in manner following, that is to say.
such debts shall be payable on the order of the department, and
the payment thereof shall be made by a draft drawn by the
Paymaster-General on the Bank of England, according to the
course and practice of his office, payable to the persons to whom
such debts may be due, or to their agents.

what banks

and what

The Treasury may, from time to time, determine at what Treasury to banks accountants shall keep the public moneys entrusted to determine at them, and they may also determine what accounts so opened in accountants the names of public officers or accountants in the books of the shall keep Bank of England, of the Bank of Ireland, or of any other bank, public moneys shall be deemed public accounts; and on the death, resignation, accounts of or removal of any such public officers or accountants the public officers balances remaining at the credit of such accounts shall, upon shall be the appointment of their successors, unless otherwise directed deemed public by law, vest in and be transferred to the public accounts of On death, &c., such successors at the said banks, and shall not, in the event of of accountant' the death of any such public officers or accountants, constitute balance to vest assets of the deceased, or be in any manner subject to the in his succescontrol of their legal representatives.

accounts.

sor.

opened in the

It shall be lawful for the Bank of England and Bank of Accounts of Ireland, at the request of the Treasury, signified by one of stock may be their Secretaries, for the public convenience, to open and keep books of the accounts of Government stock and annuities in the books of the banks under said banks under the official description of any public officer for official desthe time being, without naming him; and the dividends on such cription of public officers. stock and annuities may from time to time be received, and the stock and annuities or any part thereof to the credit of such account may, from time to time, be transferred, by the officer for the time being holding such office, as if such stock and annuities stood in his own name; and upon the death, resignation, or removal of any such public officer the stock and annuities standing to the credit of such account, and all dividends thereon, including any dividends not theretofore received, shall become vested in his successor in office, and be receivable and transferable accordingly. And any such public officer in whose The banks official description such Government stock and annuities may may be aube standing may, by letter of attorney, authorize the Bank of thorized by England or the Bank of Ireland, or all or any of their cashiers, attorney to to sell and transfer all or any part of the stock or annuities receive divi

letter of

from Treasury.

dends and sell from time to time standing in the books of the said banks on stock, on re- such account, and to receive the dividends due and to become ceipt of order due thereon; but no stock or annuities shall be sold or transferred at the said banks under the authority of such general letter of attorney, except upon an order in writing, signed by one of the Secretaries of the Treasury, directed to the proper officers of the said banks.

Annual ac

counts of the appropriation of the supply

grants com

prised in the Appropriation Act to be

prepared and certified, and

laid before

the House of

Commons.

c. 39, sec. 22.

On or before the days specified in the respective columns of 29 & 30 Viet. schedule A,1 annexed to this Act, accounts of the appropriation of the several supply grants comprised in the Appropriation Act of each year shall be prepared by the several departments, and be transmitted for examination to the Comptroller and AuditorGeneral and to the Treasury, and when certified and reported upon as hereinafter directed they shall be laid before the House of Commons; and such accounts shall be called the "appropriation accounts" of the moneys expended for the services to which they may respectively relate; and the Treasury shall determine by what departments such accounts shall be prepared and rendered to the Comptroller and Auditor-General; and the Comptroller and Auditor-General shall certify and report upon such accounts as hereinafter directed; and the reports thereon shall be signed by the Comptroller and AuditorGeneral: Provided always, and it is the intention of this Act, that the Treasury shall direct that the department charged with the expenditure of any vote under the authority of the Treasury shall prepare the appropriation account thereof: Provided also, that the term "department," when used in this Act in connection with the duty of preparing the said appropriation accounts, shall be construed as including any public officer or officers to whom that duty may be assigned by the Treasury.

* If Parliament be then sitting, and if not sitting, then within one week after Parliament shall

be next assembled.

2 See Vol. I., p. 113, Vol. II., p. 308, as to the audit of this account.

29 & 30 Vict.,

books

account as

A plan of account books and accounts, adapted to the Each depart. 39, sec. 23. requirements of each service, in order to exhibit, in a convenient ment to keep form, the whole of the receipts and payments in respect of each counts of vote, shall be designed under the superintendence of the Trea- may be presury; and Her Majesty may, from time to time, by Order in scribed by the Council, prescribe the manner in which each department of the Treasury. public service shall keep its accounts.

Ibid, sec. 24.

Ibid, sec. 25,

Ibid, sec. 26.

Ibid, sec. 27.

sides of ac

count.

An appropriation account of supply grants shall exhibit on Charge and the charge side thereof the sum or sums appropriated by discharge Parliament for the service of the financial year to which the account relates, and on the discharge side thereof the sums which may have actually come in course of payment within the same period; and no imprest or advance, of the application of which an account may not have been rendered to and allowed by the accounting department, shall be included on the discharge side thereof.

sheet, if

and Auditor

The department charged with the duty of preparing the A balanceappropriation account of a grant shall, if required so to do by thought necesthe Comptroller and Auditor-General, transmit to him, together sary by the with the annual appropriation account of such grant, a balance- Comptroller sheet so prepared as to show the debtor and creditor balances General, or a in the ledgers of such department on the day when the said statement appropriation account was closed, and to verify the balances showing the appearing upon the annual appropriation account: Provided disposition of always, that the Comptroller and Auditor-General may, if he accompany thinks fit, require the said department to transmit to him in the approprialieu of such balance-sheet, a certified statement showing the tion account. actual disposition of the balances appearing upon the annual appropriation account on the last day of the period of such

account.

the balance, to

count to be

Every appropriation account when rendered to the Comp- The approtroller and Auditor-General, shall be accompanied by an priation acexplanation showing how the balance or balances on the grant accompanied or grants included in the previous account have been adjusted, by a stateand shall also contain an explanatory statement of any excess ment explainof expenditure over the grant or grants included in such ing disposal of account; and such statement, as well as the appropriation account, shall he signed by such department.

balances and

cause of

excesses

examination

Every appropriation account shall be examined by the In what Comptroller and Auditor-General on behalf of the House of manner the Commons; and in the examination of such accounts the Comp- of appropriatroller and Auditor-General shall ascertain, first, whether the tion accounts payments which the accounting department has charged to the be conducted by the Compgrant are supported by vouchers or proofs of payments, and, troller and second, whether the money expended has been applied to the Auditorpurpose or purposes for which such grant was intended to provide: Provided always, and it is hereby enacted, that whenever the said Comptroller and Auditor-General shall be required by the Treasury to ascertain whether the expenditure included or to be included in an appropriation account, or any portion of such expenditure is supported by the authority of the Treasury, the Comptroller and Auditor-General shall examine such

General.

The Comp-
troller and
Auditor-
General to

expenditure with that object, and shall report to the Treasury
any expenditure which may appear, upon such examination, to
have been incurred without such authority; and if the Treasury
should not thereupon see fit to sanction such unauthorized ex-
penditure, it shall be regarded as being not properly chargeable
to a Parliamentary grant, and shall be reported to the House
of Commons in the manner hereinafter provided.

In order that such examination may, as far as possible, pro- 29 & 30 Vict., ceed pari passu with the cash transactions of the several c. 39, sec. 28. accounting departments, the Comptroller and Auditor-General have access to shall have free access, at all convenient times, to the books of books of ac- account and other documents relating to the accounts of such the accounting departments, and may require the several departments condepartments. cerned to furnish him from time to time, or at regular periods, with accounts of the cash transactions of such departments respectively up to such times or periods.

count, &c., in

How the vouchers of appropriation accounts, included in

In conducting the examination' of the vouchers relating to Ibid, sec. 29

1 The expenditure of the Secretary of State must be strictly limited to the Estimate and the Appropriation Act. In May 1859 the subject was publicly disschedule (B), cussed, in a correspondence which appeared in the "Times," between the late General Peel and Sir James Graham upon the allowance of billet money to innkeepers in excess of the Mutiny Act rate (History, Vol. I., p. 230-9).

shall be

examined.

With regard to the abstract question as arising upon the Appropriation and Audit Acts, it may be noticed that the public expenditure of any particular Department is governed by (a) statutory enactment, where it exists, or (b) regulation initiated by the Department and sanctioned by the Treasury (having, in many instances, the Royal Sign Manual under the countersign of a responsible Minister).

Upon the rules thus laid down the Estimates are framed and then submitted, with Treasury sanction, to the House of Commons. After these are passed the money is placed by the Treasury at the disposal of the Department to be expended (according to Statute or Regulation) but subject to the examination and report of the Auditor-General, acting under the 29 & 30 Vict., c. 39. The Act requires an appropriation account to be submitted to the House of Commons, and this account is accepted upon the faith of certificates, signed (1st) by the Chief Finance Officer of the Army, and (2nd) by the Auditor-General :

(1st.) I declare, to the best of my knowledge and belief, that no part of the expenditure contained in the above Army Appropriation Account has been incurred without authority superior to that of the Department, in cases where such authority is required by the Regulations.

JOHN MILTON,
Accountant-General of the Army.

(2nd.) I certify that this account has been examined by officers under my directions, in accordance with, and to the extent prescribed by, the 29th section of the Act 29 & 30 Vict., c. 39, and that, subject to the observations contained in the annexed Report, the above is a correct statement, as an appropriation account, of the receipts and expenditure for Army services for the year ended 31st March 1872.

WM. DUNBAR,

Comptroller-General of Her Majesty's Exchequer and
Auditor-General of Public Accounts.

Of course, possible and unintentional irregularities in expenditure may creep in,
escape the notice of the Auditor-General, and be condoned by time; but the
question was raised in 1873 whether the Secretary of State would be acting legally
in paying billet money in excess of the Statute. In several former instances the
express sanction of Parliament had been obtained by enactment, and the corres-
pondence of May 1859 was brought to the notice of the Law Officers, who were re-
quested to advise-

1. Whether the Secretary of State (with or without the sanction of the Treasury) can legally expend for billets any other, and what, sum than that stated in the current Mutiny Act for the same?

2. And generally.