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379. The relationship between the Accounts Departmentfinondon and the Accounts Department in East Africa is that of most London Depart- ments and their corresponding Departments overseas. The Corporation's Chief Accountant in East Africa is not responsible to his opposite number in London, but, through the Controller of Finance, to the East African Manage- ment and through it to the Board in London.
Audit
380. When the Corporation took over, no Internal Audit Department was in existence in East Africa. This was because the Internal Audit Division of the Ministry of Food had been carrying out these duties for the Managing Agency to February 29, 1948, and no independent Audit Department had been set up.
381. For this department too, recruiting was difficult and it was not finally set up until September, 1948. Its main function was to audit the Contractors' accounts and generally to supervise their expenditure. While responsible in general to the Controller of Finance in East Africa, the Chief Internal Auditor has direct access to the Board, to which copies of all his reports
are sent.
382. The Minister of Food appointed Messrs. Cooper Brothers & Co., Chartered Accountants, as Auditors to the Corporation for the period from March 1, 1948 to March 31, 1949, in accordance with the provisions of Section 16 (3) of the Overseas Resources Development Act, 1948.
Financial Control
383. It is the Corporation's policy to exercise financial control by a Budget approved by the Board and the implementation of which is the responsibility of the East African Central Management. Complete budgetary control depends on an accounts organisation capable of producing detailed returns of actual expenditure. It therefore had to wait until the accounts situation had been rectified. Nevertheless, for the purpose of making financial esti- mates of the Corporation's future requirements, Budget offices were opened in London and East Africa, whose responsibilities included the production of financial plans and the ad hoc critical examination of major items of expendi- ture or proposed expenditure.
384. The Budget Office in London was set up in April, 1948, and that in East Africa in May, 1948.
385. While East Africa has been able at all times to obtain financial direction and advice from the Board and the London Office, it was obviously necessary to have available in East Africa at the Central Management level, an officer capable of dealing with the numerous and frequent financial ques- tions which could not, and indeed should not, be referred to London. The post of Controller of Finance was therefore created. The Controller is a member of the Central Management in East Africa.
386. Early in 1949, a Budget was produced for the financial year ending March 31, 1950, and was approved by the Board. It was put into operation on April 1, 1949.
Queensland-British Food Corporation
387. The Balance Sheet as at March 31, 1949, and Accounts of the Queensland-British Food Corporation, are contained in the report of its activities which appears in Appendix I.
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