227. Funds. (I) Each Electricity Authority shall establish and keep the following funds, that is to say:-
(a) an Operating Fund;
(b) a Trust Fund;
(c) a Capital Works Fund;
(d) a Special Fund; and
(e) in the case of an Electricity Board that exercises the power vested in it by section 129 (b), an Appliance Trading Fund.
(2) The funds shall be kept separate and distinct,
228. Operating Fund. (1) There shall be paid into the Operating Fund-
(a) all moneys received i n respect of sales of electricity:
ELECTRICITY ACT 1976-1980 SS. 229,230 137 (b) all penalties, fees and other charges payable to the Electricity
Authority pursuant to this Act;
(c) all moneys received in respect of equipment and motor hire, rentals, the provision of technical advice and the undertaking of work pursuant to section 99 (i) or, as the case may be, section 129 (m) and, except as otherwise provided, interest on investments;
(d) a11 moneys received in respect of any grant or subsidy or appropriation by any Act not subject to any condition to the contrary and not being a grant or subsidy towards the capital cost of any work;
(e) all moneys that have remained unexpended when any reserve created pursuant to Division V of this Part has been discontinued or applied for the purpose for which it was created; and
(f) all other moneys received not appertaining to any other fund.
(2) Expenditure incurred in the exercise and performance of the powers, functions and duties of an Electricity Authority shall, except as otherwise provided in this Part, be met from the Operating Fund.
229. Trust Fund, (1) There shall be paid into the Trust Fund all moneys received or held by way of deposit or in trust for any person under this Act or any other Act and any unclaimed moneys held pending the disposal of such moneys according to law.
(2) The Trust Fund shall be applied to the payment to or on behalf of the person entitled thereto of moneys held by way of deposit or in trust for any person and to the disposal of unclainled moneys according to law.
230. Capital Works Fund. (1) There shall be paid into the Capital Works Fund all moneys-
(a) provided by the Commission pursuant to Division V of Part 11 or by another Electricity Authority pursuant to section 73;
(b) received by way of loans that the Electricity Authority may be authorized to raise pursuant to section 41 ;
(c) received from the Treasurer or from any other pcrson towardc the capital cost of works of such Authority irrespective of whether all or any part of such moneys is subject to a condition requiring the repayment of all or part of such moneys by the Authority;
(d) provided by an applicant for an initial or additional supply of electricity pursuant to an agreeil~ent under paragraph (b) or (c) of section 163 (1);
(e) provided for expenditure oil capital usol-ks froin ally other fund established and kept by the Authority; a i ~ d
(f) being the proceeds from the sale of any asset, jncludjng scrap rl~sterial.
138 ss. 231,232 BL,ECI?RICITY ACT 1976-1980
(2) The Capital Works Fund shall be applied to meeting capital expenditure incurred in the purchase, construction, extension and protection of works for the supply of electricity and any other expenditure of a capital nature:
Provided that any grant or subsidy received from the Treasurer or otherwise in respect of a particular project or any contribution received from any other source towards the capital cost of a specified work shall be applied t o that particular project or specified work and not otherwise.
As amended by Act of 1980, No. 15, s. 36.
231. Special Fund. (1) There shall be paid into the Special Fund- (a) any surpluses in the Operating Fund transferred to the Special
Fund pursuant to section 243 ; (b) (Repealed) ;
(c) any sums set aside to provide a reserve created pursuant t o Division V of this Part and, where the Electricity Authority has so resolved, the interest earned on investments made out of moneys standing to the credit of such reserve; and
(d) moneys from the Appliance Trading Fund that in the opinion of the Electricity Authority are surplus to the requirements of that fund.
(2) The Special Fund shall be applied t o meeting-
(a) any deficit in the Operating Fund that may be met from the Special Fund pursuant to section 243;
(b) any payment that can properly be made from moneys set aside to provide a reserve;
(c) (Repealed) ;
(d) the replacement of assets and any other capital expenditure that may be approved by the Electricity Authority provided that permission of the Commission is first obtained; and (e) temporary transfers to the Appliance Trading Fund to provide
financial accommodation for that Fund provided that such transfers are first approved by the Commission,
(3) Moneys that have remained unexpended when any reserve, created pursuant to Division V of this Part, has been discontinued or applied for the purpose for which it was created shall be paid to the Operating Fund out of the Special Fund.
As amended by Act of 1980, No. 15, s. 37.
232. Appliance Trading Fund. (I) There shall be paid into the Appliance Trading Fund-
(a) all moneys received in respect of the supply, installation and repair and the sale and hire of and other dealing in electrical articles ; and
(b) all moneys received by way of a loan, transfer from another fund of the Electricity Authority or otherwise, to provide finance for the appliance trading activities of the Electricity Authority.
(2) The Appliance Trading Fund shall be applied to meeting-
(a) all costs on account of the supply, installation, repair and acceptance by way of trade in and the sale and hire of and other dealing in electrical articles, including the payment of interest on moneys borrowed to provide finance for such activities, and the repayment of such moneys ; and
(b) transfers t o the Operating Fund or Special Fund as authorized by resolution of the Electricity Authority.
233. Bank accoants. - (1) Each Electricity Authority shall keep-- (a) a separate bank account to record the transactions in the
Trust Fund;
(b) a separate bank account to record the transactions in the Capital Worlts Fund;
(c) a general bank account to record the transactions in the Operating Fund, the Special Fund and the Appliance 'Trading Fund.
CIA) Notwithstanding subsection (1) (c), a n Electricity Authority may, if it determines so to do, keep a separate bank account to record the transactions in the Appliance Trading Fund in lieu of using the general bank account for that purpose.
(2) All payments may be made from the general bank account in the first instance provided that payments made from this account on account of the Trust Fund or the Capital Works Fund are forthwith reimbursed from the separate bank account kept for such fund.
As amended by Act of 1980, No. 15, s. 38.
Divisiorl If-Accozmts
234. Accounts. (1) An Electricity Authority shall cause such books to be provided and kept, and such entries to be made therein, in respect of its accounts as may be prescribed or as set out in a uniform practice manual conipiled and published pursuant to section 444.
(2) The General Manager shall at the first ordinary meeting after t l ~ e close of each month or of such other accounting period as may be adopted by the Electricity Authority submit to the Electricity Authority statements of the accounts in relation to the budget for the period of the bear e ~ d i n g at the termination of such month or other accounting period.
(?)Tile statements shall show both estimated receipts and disbursements and actual receipts and disbursements, with such explanations 2s will give a true indication of the progressive state of the -totes pro~ideci in the b ~ d s e t and, in addition, the statements presented to the January and April meetings shall include an estimate of the anticipated pcsition at the end of the year.
As nrncndecl by Act of 1980, No. 15, s. 39.
140 SS. 235,236 ELECTRICITY ACT 1976-1980
235. Financial statements. (1) The General Manager shall cause to be prepared and shall lay before the Electricity Authority at the budget meeting in each year referred t o in section 239 annual statements of accounts and such other financial and relevant information as, and in the manner and form, prescribed or as set out in a uniform practice manual con~piled and published pursuant to section 444.
(2) Such financial 'statements shall include-
(a) notes that fairly expIain variations between actual receipts and disbursements for the year in question and the budgeted receipts and disbursements for that year or the comparable receipts and disbursements for the previous year as may be appropriate in the circumstances;
(b) a statement of the significant accounting principles involved in the preparation of the financial statements;
(c) details of each significant contingent asset and liability; and (d) a statement comparing-
(i) the total of the amounts paid by the Electricity Authority for redemption of loan indebtedness, sinking fund contributions and the provision for capital works made pursuant to Division IX of Part 11; with
(ii) a calculation of depreciation, at rates determined having regard to the depreciation rates applied by other major electricity authorities in Australia and the estimated ljfe of the relevant assets.
(3) The financial statements of the Electricity Authority shall be certified in the manner and form prescribed or as set out in a uniform practice manual compiled and published pursuant to section 444.
(4) A table setting out a consolidation of amounts paid and calculated pursuant t o subsection (2) (d) shall be included in the financial report of the Commission submitted to Parliament pursuant to section 434.
(5) Until the (anhual statements have been audited pursuant to section 441 and submitted to Parliament pursuant to section 434, none of them shall be sold or otherwise made available to any person other than-
(a) the Minister, the Auditor-General or the Commission;
(b) an authorized officer of the Minister, the Auditor-General or the Commission; or
(c) a member or employee of the Electricity Authority.
As amended by Act of 1980, No. 15, s. 40.
Division III-IIZ vestments
236. Investment of moneys. (1) An Electricity Authority may by resolution invest in securities of or guaranteed by the Commonwealth Government or securities issued by a Local Authority or other public authority in Queensland (including securities of the Commission or of any Electricity Authority authorized to borrow under this Act including the Electricity Authority in question) that are guaranteed by the Treasurer
ELECTRICITY ACT 1976-1980 SS. 237-239 141 on behalf of the Government of Queensland any moneys (including moneys held in trust) that in the opinion of the Electricity Authority will not b:: required for the period of investment proposed in circumstances where at the time of investment it intends t o hold such securities until maturity.
(2) I1 moneys invested pursuant to subsection (1) are required by the Electricity Authority in connexion with the exercise of its functions or the performance of its duties prior to the date of maturity of the securities in respect thereof, the Electricity Authority may, with the consent of the Commission, realize those securities prior to such date of maturity.
(3) The General Manager of an Electricity Authority may arrange for the Commission to invest, on behalf of the Electricity Authority, other moneys that are temporarily surplus t o the requirements of the Electricity Authority,
(4) Moneys referred to in subsection (3) may be invested by the Commission in its own name without reference to any trusteeship and any such investment by the Commission shall be in a manner for the time being approved pursuant to section 36 (v) for the investment of'moneys held by the Commission and not immediately required.
( 5 ) Notwithstanding any other provision of this section, an Electricity Authority may invest moneys held in trust by it on behalf of the beneficial owncr of those moneys in accordance with arrangements made by it with that beneficial owner.
Division I V-Budgets
237. Meaning of term " year
".
In this Division, the term " year"means the period of time commencing on 1 July in any calendar year arid concluding on 30 June in the next succeeding calendar year.
2309. Amual budget to be prepared and submitted to the Commission.
( I ) Each year the General Manager of an Electricity Authority shall cause to be prepared in form and manner prescribed a separate budget for the year for each of the funds, except the Trust Fund, the Electricity Authority is required to establish and keep pursuant to section 227.
(2) Each year the General Manager shall also cause to be prepared, in manner prescribed, a budget or budgets for such additional purpose or purposes involving income or expenditure as may be prescribed.
(3) The General Manager shall cause to be sent to the Commission and to each member of the Electricity Authority a copy of each of the budgets referred to in subsections (1) and (2) so that such copies will, in normal circumstances, be received by their addressees prior to 31 July in that year.
239. Consideration of budgets. (1) The budgets shall be considered by the Electricity Authority at a meeting (hereinafter in this Division referred to as " the budget meeting ") on or before 31 August in the year to which it relates of which not less than 21 days' notice shall have been given to every member of the Electricity Authority and to the Commission.
142 SS. 240-242 ELECTRICITY ACT 1976-1 980
(2) A period of at least 21 days shall elapse between the date on which each member and the Commission would in the normal course of delivery have received his copy of the budgets and the budget meeting.
(3) At the budget meeting the Electricity Authority may adopt the
budgets- 6
(a) as presented by the General Manager; o r
(b) as amended or modified by the Electricity Authority,
or it may defer the budget meeting or, at the budget meeting, defer the adoption of the budget of a particular fund to a further meeting, but any such deferred meeting or further meeting shall be held not later than 30 September in the aforesaid year.
240. Commission may confirnl or require amendment of budgets.
( I ) The secretary to the Electricity Authority shall within one week of the budget meeting, the deferred meeting or the further meeting, as the case requires, forward to the Commission-
(a) a copy of the resolution of the Electricity Authority adopting the budgets; and
(b) a copy of the budgets, as adopted by the Electricity Authority.
(2) The Commission may confirm the Electricity Authority's approval of the budgets or require an addition to, omission from, or variation of any of the budgets as adopted.
(3) The budgets as confirmed by the Commission or as amended by addition thereto, omission therefrom or variation thereof in accordance with the requirements of the Commission shall be the adopted budgets of the Electricity Authority for the year in question unless, pursuant to section 241, the Electricity Authority makes an objection in respect of any requirement as aforesaid of the Commission.
241. Decision by Minister on budgets. (1) If the Electricity Authority objects to a decision of the Commission requiring an addition to, omission from or variation of the budgets as adopted or any of them, it shall within seven days after the meeting at which the Commission's decision was communicated to it inform the Commission of its objection and the grounds thereof and indicating the manner in which it proposes that the budgets should be adopted. The Commission shall thereupon submit the Electricity Authority's objection and proposal to the Minister for decision, and the decision of the Minister shall be final and binding on the Commission and the Electricity Authority.
(2) Within 14 days of the receipt of the Minister's decision, the Electricity Authority shall meet and adopt the budgets in accordance with the Minister's decision.
2.62. Date before 'which budgets to be adopted. (1) Subject to sections 239, 240 and 241, the budgets shall be adopted by the Electricity Authority not later than 30 September in the year to which they relate:
ELECTRICITY ACT 1976-1980 S. 243 143
Provided, however, that the Minister, on the recommendation of the Cornmission, may grant the Electricity Authority an extension of time for this purpose in respect of any year if for any reason outside the control of the Electricity Authority or the Commission such extension is necessary.
243. Budgets to be observed. (1) (a) The Electricity Authority shall as far as possible observe the budgets and if at the end of any year there is a surplus or deficit in the Operating Fund the surplus shall be carried forward or transferred to the Special Fund and the deficit shall be carried forward or met from the Special Fund.
(b) The balance in each other fund at the end of any year shall be carried forward.
(2) At the close of each year all authorizations of expenditure and votes of money therefor shall lapse. Any vote so lapsing may be revoted.
(3) Any ordinary disbursement of the Electricity Authority in a year, prior to the adoption of the budgets for that year, is authorized and shall be included in the budgets for that year.
(4) An Electricity Authority may depart from the provisions of the budget if such departure is considered by it to be desirable for the purpose of conducting the business of the Electricity Authority to the best advantage in accordance with the provisions of this Act:
Provided, however, that-
(a) if before the adoption of the budget any expenditure that is not an ordinary disbursement is proposed or if after the adoption of the budget any proposed expenditure would require a departure from the budget and, had provision for such expenditure been made in the budget, that expenditure would have come within the scope of a delegation to the General Manager or to another employee of the Electricity Authority, the General Manager may authorize the expenditure so proposed or the proposed departure from the budget (but any such expenditure or departure from the budget authorized by the General Manager shall be reported by him to ,the next meeting of the Electricity Authority);
(b) if before the adoption of the budget any expenditure that is not an ordinary disbursement is proposed or if after the adoption of the budget any proposed expenditure would require a departure from the budget and the expenditure so proposed or the proposed departure from the budget involves expenditure which, had provision for such expenditure been made in the budget, would have required the approval of the Electricity Authority, the expenditure so proposed or the proposed departure from the budget shall first be approved by the Electricity Authority.
(5) The Electricity Authority shall advise the Commission of the details of any expenditure or departure from the budget pursuant to subsection (4) within one week of the date of the meeting at which such
144 SS. 244-248 E,LECTRICITY ACT 1976-1 980
expenditure or departure was reported t o it or approved by it, as the case nlay be, and the provisions of sections 240 and 241 shall apply, with all necessary adaptations, with respect t o such expenditure or departure as they do with respect t o thc budget.
244. Lialtility of me bers of Electricity' Authority for unauthorized
r
expenditure. (1) If an E ectricity Authority makes any disbursement- (a) in any year from any fund which disbursement has not been
provided for in the budget relating to such f ~ ~ n d for such year, except in accordance with section 243; or
(b) which is othervvisc illegal,
all the members of the Electricity Authority who have knowingly voted for such expenditure sllall be jointly and severally liable to repay t o the Electricity Authority the amount i~lvolved in such illegal disbursement, and the Minister, on being satisfied as t o the matters relating t o the liability as aforesaid ol' the n-iembers, may order those members or any of then1 t o pay such amount or any part thereof t o the Electricity Authority forthwith or within such time as the Minister determines.
(2) If a member does not repay an amount in pursuance of an order as aforesaid, it may be madc a n order of a court having jurisdiction in an action for debt having regard to the amount involved by filing a copy of the order in the ofice of the registrar of that court, and may be enforced accordingly.
(3) Any amount rcpaid by or recovered from a member pursuant to this scctiorl shall be paid into the fund of the Electricity Authority from which the illegal disbursenlent was made.
245. Variation of clectsicity charges. Nothing contained in this Division or in any budget adopted by an Electricity Authority shall operate to prejudice or affect the provisions of this Act with respect to charges that may be made by a n Electricity Authority for or in relation to electricity supplied by it, and when and so often as the Electricity Authority considers any variatjon in any such charges to be necesary or desirable, it may apply accordingly to the Commission.
Division V-Reserve E-~l~lil,s
Heading as amended by Act of 1980, No. 15, s. 41.
246, 247. (Repealed).
Repealed by Act of 1980, No. 15, s. 42.
248. Reserves of Electricity Authorities. (I) An Electricity Authority with the approval of the Commission may set aside reserves so that they constitute one general reserve or reserves for specified purposes or one general reserve and reserves for specified purposes.
(2) The total amount set aside by an Electricity Authority in any one year as a contribution to or contributions to a general reserve shall not exceed 5 per c e n t u ~ n of the total receipts of the Operating Fund in the preceding year.