(6)
the second half-year. These are added together and the total brought out. Any abatements that have to be made by changes of tenancy, &c., have to be put in and from the result of these calculations is brought out the balance. That is put down in each case and after that the pages have to be added up and down.
The Chairman (indicating the book alluded to).--Is this book only for 1891? A.---Yes.
Q.--I notice the arrears are pretty stiff.
A. Anything not paid by December 31st becomes an arrear.
Mr. Bird.--They are nearly all in arrear?
A. Yes, it is very seldom otherwise unless they pay in a lump sum.
The Chairman.--When a man comes to pay is the amount entered in this book? A.--No, it would first be entered in the day book.
Q.--If you let the Rent Roll get in arrear it would of course be a very difficult matter to write it up?
A.--I don't know that he wrote it up every day.
As I have said it took one man three weeks doing absolutely nothing else but balancing this book. What I mean to say is that as Alves was very hard worked he could not give more than an occasional hour or so to it, and he used to do it at his leisure. The money was not supposed to pass through his hands so it was only regarded as clerical work.
Mr. Thurburn.--There is no such thing as an absolute check?
A. It is perfectly possible.
Q.--But it was not carried out?
A.--No, it was not carried out for 1892. It ought to have been carried out for 1891.
The Chairman.--You can hardly call them arrears on January 1st when the amounts were only due on December 25th. For 1891 nothing becomes due until June 25th.
A. Yes, June 25th and December 25th.
Mr. Bird.--When the man you have just specially employed took the work in hand how much was it behind?
A. The year 1891, Alves had so little time, but he had been told to get it up once or twice and had been doing it gradually. He was told to do it while I was in England and in consequence of that, I believe, he began to get it up.
Mr. Bird.--He was 18 months behind hand?
A. He was about 12 months behind in the 1891 book.
The Chairman.--How far was he behind when you took your position?
A.--I do not know. I cannot say anything about the 1890 book. I did not look at any book previous to the date of my taking my position. I suppose I ought to have done, but I did not. The 1890 book does not appear to have been balanced.
Mr. Bird.--If it was not balanced in 1890 how did they carry out the balance for 1891?
The Chairman.--That is only the balance for the year.
Mr. Bird.--You have to make up the last column before you can begin a new book. How did they begin 1891 if they never balanced the column for 1890?
A.--The book was in his possession. He might have made his trial balance but he did not absolutely finish his books.
(7)
The Chairman.--He may have put in his first column the last six months' rent (To Hon. N. G. Mitchell Innes) Did you, when you took possession, examine the books to see what the system was respecting the receipt of money, and to ascertain whether there was any efficient check?
A. Yes, as I got accustomed to the work I have been gradually trying to improve it. When I first took the position I knew nothing of Treasury work and for a time it was in the hands of subordinates.
Q.--Did you see what system was in force for the receipt of money?
A. Yes, I got what assistance I could from subordinates.
Q.--Was there any check respecting the daily receipt of money? Was there any check on the shroff, for instance, or on Alves?
A.--The Auditor does all that.
Q.--In your Department you had no daily check?
A. No, the checking of receipts is supposed to be the business of the Auditor.
Mr. Bird.--He does that once occasionally?
A.--He comes every month and checks almost everything that passes through the Office.
Mr. Thurburn.--It is not a half-yearly or yearly check?
A.--No, I understand that he has to check at any time.
The Chairman.--Who was the Auditor when you were first there?
A.--Mr. Nicolle. He came in 1890 I believe.
--As far as your own Department was concerned you had no check on the shroff or cashier?
A. The system itself was supposed to be a check.
Q.--Let us see what it was. Was there anybody who could tell at the end of the day whether the monies received had been properly accounted for?
A.--No, the receipt passed out of the Department, unless it was entered in the counterfoils. The counterfoils were left out for the inspection of the Auditor and the Auditor could at any time by looking at the counterfoil find whether the amount had gone into the books.
Mr. Thurburn.--In fact it was his duty to check the money received with every receipt?
A.--That was what I always understood.
I never quite knew what the Home Authorities wanted the Auditor to do. I understood that my business was to have a preliminary check on the expenditure.
The Chairman.--Did you not think that you were at all bound to look after the receipts?
A.--It is impossible for the Treasury to audit the receipts; we have no officers for the purpose.
Q.--Did you not think it was your duty to have some check on your own officers?
A. thought that the check of the Audit Office was sufficient.
Q.--Can you tell us how these defalcations have occurred if Alves was supposed never to have received any money?
A.--What I believe to be the case is that a large number of people who, I suppose, were friends of Alves came to him and paid their money to him in person, that when once he was able to handle the money, and as the shroff did not know English--that is to say he only knew figures--he was enabled to get the shroff to put his chop on the receipt. The shroff would do pretty well as he was told. The shroff would return the receipt...
670