COPY.
Reference Sheet from Director of Colonial Audit to the
Auditor. Hongkong.
(B.) 182
No: 7/1920.
30th January, 1923.
Your reply to Reference Sheet No. 5/1920.
with reference to your reply to Reference Sheet from
this office, No.5/1920, of the 11th of August, 1922, it ia
observed that the detailed statement of transactions fur-
nished by the Treasurer does nothing more than to corroborate
the facts as originally stated in Reference Sheet No.3/1920
from this Office.
In that Reference Sheet (No.3/1920) two points were
raised: -
(a) That in December 1920 a credit of #379.950.75
was made to the subhead "Other Services" of the xpendi–
ture Head "Kiscellaneous Services"; that the net credit
appearing in the 1920 Appropriation Account under that
subhead was $199,946.79; that the expenditure on that
subhead during the year 1920 was therefore apparently
$180,004.96; that the provision in the approved Estimates
for 1920 ($5,000) and the provisional vote ($80,000)
against that subhead were insufficient authority for the
excess expenditure incurred beyond the approved amount
of $85,000 and that therefore an explanation was
required as to the authority under which the excess
expenditure ($95,004.96) had been incurred under the
subhead "Other Services" of the Head "Miscellaneous
Services",
(b) That in paragraph 3 of the despatch from the Governor of Hongkong to the Secretary of State (No.385
of the 13th of October, 1921) it was stated that the sum of $379,950.75 was still recorded under "Deposits not available"; that the 1920 Account appeared to show
that