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With the accounting operations conducted in this manner the need for close super- vision is apparent, but we are satisfied that the multifarious duties which Mr. Melbourne was called on to perform rendered it impossible for him to devote the necessary attention to the accounts.
The Registrar, Mr. Nisbet, having delegated the duty to Mr. Melbourne appears to have left matters entirely to the latter. He does not appear to have called the attention of the Government to the necessity for a proper accounting staff.
120. The haphazard manner in which the trust estates and estates in the hands of the Official Administrator were administered appears to be attributable entirely to Mr. Nisbet's failure to appreciate the necessity for the active performance of the many onerous duties which are required to be discharged by the Official Trustee and the Official Administrator.
Part V.
RECOMMENDATIONS.
Section I.
THE COLONIAL TREASURY REVENUE BRANCH.
121. (a) We consider that the practice of writing receipts in pencil opens the door to fraud by erasure and alteration, and that all receipts should be written in ink.
(b) We consider that the shroffs should be provided with books wherein they should enter in ink brief but adequate particulars of all sums paid to them, and that they should be instructed to verify, by comparison with such books, all receipts presented to them for chopping. Such books should be regarded as books of record, and the shroffs should be instructed to deliver them to the Cashier when completed. The Cashier should from time to time check the entries in these books by comparison with the entries in the Collection Books, and should make occasional checks of their accuracy when scrutinizing the paying- in slips and the Daily Balances Reconciliation Statement.
(c) Strict instructions should be given that Collection Book Clerks and members of the Treasury Staff other than the Shroffs, must not in any circumstances receive directly or indirectly any payments due by members of the public and must not assist the shroff's in the receipt of such payments; and they should be clearly informed that any breach of these instructions will render them liable to severe disciplinary measures.
(d) Inasmuch as the Revenue Files are, in the absence of Ledger Accounts, the documents wherein the progress of the collection of revenue is recorded, we suggest that the keeping of these Files should not be entrusted to the Collection Book Clerk but rather to the Book-keeping Branch.
(e) We regard the Loose-leaf system of Revenue Files as highly dangerous and re- commend its immediate abandonment.
(f) We do not consider that the Revenue Files in their present form, whether loose- leaf or otherwise, are a satisfactory method of recording the revenue to be collected or the progress of collections, and we recommend that Ledger Accounts should be opened and kept by the Book-keeping Branch in respect of all heads of revenue; and that in respect of heads of revenue which are periodically recurrent, such as Crown Rents, Rates and Water Accounts, separate Ledger Accounts should be opened for each half year or quar- ter, as the case may be.
(g) We consider that the cash in the hands of all the shroffs should be checked by the Cashier at the close of business each day, and that after such check the cash should be retained under the personal control of the Cashier.
The amount of the cash should be compared with the balances shown by the Collec- tor's Books, and this cash balance should be shown on the certificate required by Colonial Regulation No. 336.
(b) We are not satisfied as to the adequacy of the security of $1,000.00 each furnish- ed by the six junior shroff's and we recommend that the amount be raised to $2,000.00.
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