134.
135.
Heads 41, 104, 172 and 176
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Subventions.
Deferment of action in setting out the Government's policies and procedures for the control of subventions. In my previous report I referred to the several occasions during the past 16 years when I had raised the matter of the inadequacy of the guidelines on the administration of subventions and of clearly defined conditions attaching to each subvention or type of subvention, and of the slow progress to remedy the inadequacies in a number of areas. The areas still outstanding at the time of my previous report were:
the need to produce general guidelines on the control of miscellaneous subventions;
the need to revise and update the notes for guidance on subvented medical and social welfare organizations; and
the need to prepare guidance notes for accountants and auditors of all subvented organizations.
The Deputy Financial Secretary gave evidence on the subject at a public hearing of the Public Accounts Committee held in November 1984. He explained that the main cause of the slow progress over the past 16 years was the size and the extent of the subject. He stated that, nevertheless, quite a lot had been done, and considering the amount of funds involved, expenditure on subventions was reasonably well controlled. He also stated that he would reconvene the working party on the administration of subventions and that the matter would be given priority.
136.
In concluding their deliberations on the subject the Public Accounts Committee endorsed my remarks that the exceptionally slow progress on a matter of such importance was not one that would help to enhance the Government's reputation for speedy administration. The Committee stated that they were not persuaded by the explanations given for the lack of action on this matter although they noted the defence offered by the Deputy Financial Secretary that there was no evidence of a loss to revenue as a result. The Committee recommended that the working party should be reconvened at an early date to consider and to make recommendations on the outstanding areas, and to draw up a timetable for the completion of the various tasks.