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Memorandum explaining the method in which the cost of Public Works involving the consumption of Materials and Stores should be estimated and accounted for.
1. All expenditure on Stores and Materials for Public Works should be estimated as part of the cost of the works, but all such Stores and Materials should be drawn from a general stock, for the maintenance of which separate provision should be made.
2. A Vote for "Public Works Materials and Stores" should be instituted, and a standard stock of Materials and Stores (as expressed by their value), decided upon. This standard should be fixed at an amount sufficient to meet all probable requirements from time to time, whether pertaining to recurrent or extraordinary works, and all purchases, whether of ordinary or special character, should be treated in one general Store Account, and be charged to the Head "Public Works Materials and Stores".
3. If the standard stock is, in the future, to be greater than the existing reserve (valued out), a special Vote should be taken to bring it up to its agreed limit, but if the existing stock is adequate, the Vote for "Public Works Materials and Stores" need only be represented in the annual Estimates in future by a token sum, say £50.
In order to clear the existing "Suspense Stores Account" which is represented by a Dr. Balance in the Cash Ledger it will be necessary to take a definite Vote, once and for all representing the value of the "Materials and Stores" on hand. On the adoption of the new system, the balance of the "Suspense Stores Account" should be charged to this Vote.
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