COPY.

Sir,

C.O. 294

33847

Audit Office,

Hongkong, August 12th, 1907.

With reference to Lord Elgin's letter of July 8th, in which sanction is not given for the appointment of an additional Assistant Auditor and 2 clerks, I have the honour to report for the information of His Excellency the Governor that I am unable to cope with the Railway Audit which at the present time stands thus:

a. Examination of 3 months Railway Monthly Cash Accounts with supporting Vouchers, etc., is in arrears.

b. Stores. Examination of Crown Agents Invoices, and Receipt Vouchers in support of local purchase with Store Journal and Ledger entries is 7 months in arrears.

c. Stores. Examination of Issue Notes with Stores Debit Schedules and Ledger entries is 15 months in arrears.

d. Inspections. No inspections to examine the Accounts and Stores of the Sub-Division has as yet been undertaken.

I take this opportunity of assuring His Excellency that the arrears of Audit are in no way due to any lack of zeal or energy on the part of myself or my staff but solely to an insufficient staff.

As an experiment, I am, however, after very careful consideration prompted to make the following suggestions which I trust will meet with the approval of His Excellency:

That the Assistant Auditor, Mr. R. F. Brayn, should be told off to devote his whole time in carrying out the Railway Audit, and also that of the New Territory Crown Rent. In order to carry this...

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