No. 843

Any further correspondence on this subject, the above number should be quoted, and the communication should be addressed to The Comptroller and Auditor General.”

EXCHEQUER AND AUDIT DEPARTMENT,

Sir,

I am directed by the Comptroller and Auditor General to transmit to you, for the inspection of the Secretary of State, two Reports which have been received from the Local Auditor at Hong Kong.

1. On certain defalcations in the Money Order Branch of the Post Office

2. Suggesting an increase of Staff to carry on the local audit work.

The first Report affords ample evidence of past neglect and of the want of proper supervision of the receipt of the Revenue, and tends to corroborate the statement contained in the letter from Sir W. Marsh of 13th January last, that in 1879 the Revenue accounts "were not audited at all, in Hong Kong, and that no precautions seemed to have been taken against embezzlement by the Employees

The Hon. R. N Meade C.B.

SOMERSET HOUSE, LONDON, W.C. 16 July 1890

Rec 13799 REG 17 JUL 90

663

W 860

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