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Copy.
Sir,
Enclosure 1B.
Audit Department,
Hongkong, 15th May, 1920,
251
I have the honour to submit in accordance with your instructions a report on the various cash accounts administered by the Captain Superintendent of Police on the 30th November, 1919. The statement of accounts has been drawn up by a Treasury clerk acting upon the instruction of the Colonial Treasurer and although it serves the purpose of showing the total apparent deficit of the Police accounts, it does not show from which eccounts the money was misappropriated. Refore making any comments on the accounts I wish to draw your attention to the fact that although the statement has been drawn up by a Treasury officiel it has neither been checked wor verified as to its correctness, or signed by the Colonial Treasurer as the Chief Accounting Officer of the Colony which, in my opinion, is contrary to the regulations laid down in chapter V of the Colonial Regulations.
I regret that I am unable to accept the amount shown as $17,851.05 on the contra eide of the statement under the heading "Indian Police Family Remittances". I have gone through this account several times with the Accountant of the Police Department, and we are agreed that the amount to be shown
on the contra side of the statement should be 14,856,55 which would reduce the purported deficit by £2,994.50. This sum is
approximately the amount of the Indian Remittances for November
which, I understand, was included in the statement by the
Treasury official, but which procedure appears to me to be
incorrect.
3. On the contre side of the statement under the head-
ing "Monev due to the Treasury", 8865.04, I have to inform you that it would appear more correct to include an additional sum
The Auditor,
Hongkong.