4. Drawing Rights
4.1 Drawing Rights
Under section 83 of the Constitution, “no money shall be drawn from the Treasury of the Commonwealth except under appropriation made by law”. The system of drawing rights established by the FMA Act gives operational substance to this requirement. A drawing right is required to:
- Make a payment of public money. This drawing right is exercised when:
- A payment is issued (eg cheque printed, direct credit payment instruction is transferred to the bank, etc) from a bank account; and
- A payment is made from a cash advance.
- Request that an amount be debited against an appropriation. The department does not use this drawing right.
- Debit an amount against an appropriation. This drawing right is exercised when the department no longer “controls” the payment (eg a cheque is mailed).
The Secretary has delegated the power to issue drawing rights under FMA Act section 27 to the CFO.
- The CFO must issue drawing rights to officials who manage the payment processes:
- Overseas and STO Finance Managers: to make payments from a bank account or cash advance and to debit an appropriation.
- Divisional Coordinators (or their equivalent): to make payments from a cash advance.
- AS FSB and Director FPT: to make payments from a bank account or cash advance.
- AS FSB: to debit an appropriation.
- Salary packaging service provider: to make payments from a bank account.
- Officials holding drawing rights must ensure appropriate procedures are put in place to comply with the terms of the drawing right.