When relevant money must be banked
Officials who receive bankable money, under section 19 of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule), are to deposit that money in a bank either by the next banking day or within the period prescribed in the accountable authority’s instructions. The discretion provided to accountable authorities allows them to take into account organisational or operational matters that may affect the prompt banking of money.
A banking day is a day other than the weekend or a public holiday in the place where the money is received.
This accommodates locational issues such as:
entities operating in regional and remote areas of Australia or overseas
the differing dates of state, territory or regional public/bank holidays across Australia.
Section 20 of the PGPA Rule provides an exception to section 19 requirements, for the deposit of relevant money in a bank where an official receives money for carrying out an activity of the entity.
Example
Section 20 of the PGPA Rule provisions (exceptions to section 19 requirements) may apply if:
- money is stored at an entity’s shopfront, for use as a cash float
- money is withdrawn from an entity’s bank account to make cash payments (for example, for payment of salaries, purchasing goods and services or for making grants).
When money is not required to be banked
There are certain circumstances where money is not bankable, including where the:
entity’s bank will not accept the money, or
accountable authority considers that it is not economically viable to bank the money.
Examples
- Foreign coinage or money that is damaged or contaminated is not usually accepted by banks and therefore cannot be banked.
- If coins are collected far from where they are to be banked, the accountable authority may decide to store them until there is sufficient number or value to justify the cost of transporting the coins for banking.
If relevant money is not bankable it does not need to be banked under section 21 of the PGPA Rule, but it must be managed in accordance with the instructions issued by the entity’s accountable authority.
Example
An accountable authority’s instructions may provide for foreign coinage, that cannot be banked or used to make payments in Australia, to be provided to an officer who is travelling to that foreign country, to be used in that country.
If circumstances change so that the money no longer falls into the category of money that is not bankable, then the money becomes bankable and is subject to section 19 of the PGPA Rule.
