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IMPORTS AND EXPORTS.

Investigation into the accounts of the Opiuin Monopoly as affecting the disposal of confiscated opium through action by the Police resulted in numerous observations, and from the replies to the questions raised it was found necessary to submit to Goverment certam recommendations which, having been put into practice, will ensure a more satisfactory system of account- ing for all confiscated goods.

HARBOUR OFFICE.

It was considered necessary to raise a considerable number of observations on the question of the use of Government Launches by Government Officials without payment. His Ex- cellency the Governor has recently directed the Treasurer and Harbour Master in co-operation with this department to frame regulations as to the use of such vessels, which should result in the matter being placed on a more satisfactory basis.

REVENUE DECREASES,

9. The principle decreases as compared with the Estimates

are:-

Liquor Licences

Stamp Duties

Tobacco Duties

China Companies Fees

$ 22,371,68

181,602.16

80.822.80

53,080,89

Medical Examination of Emigrants

35,484.00

Public School Fees

14.056.24

Sunday Cargo Working Permits..

82,725.00

Survey of Steamships

29.684.00

Railway-Passenger Service, Home Line

15,496.61

Goods Service, Home Line

Conservancy Contracts

13,694.87 17,960.00

ARREARS OF REVENUE.

10. A statement showing the arrears of Revenue at the termination of the financial year 1928 is enclosed showing a total sum of $320,185.52 outstanding on the 31st of December, 1928, since which date, and on the 31st of July 1929, the position is as follows:-

Collected since 1.1.1929 Written off

Outstanding on 31.7.1929

TOTAL

$129,518.98 29,700.84 160,965.70

$320,185.52

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Reviewing the statement, it will be observed that with the exception of outstanding revenue in respect of Leased Lands, and Premia on New Leases the Treasury control over the col- lection of revenue is satisfactorily maintained,

With reference to the outstanding Revenue under the heads Premia and Leased Lands, I would explain that these arrears are the result of unforeseen difficulties which have arisen in connection with the completion of the Praya East and Kowloon Tong Building Schemes. The Government have taken necessary action for recovery of the amount due.

EXPENDITURE 1928.

11. The Expenditure Accounts of the Colony have been examined in accordance with the general procedure. Three hundred and ninety-nine (399) Queries were raised in the course of the examination of the general expenditure accounts included in which are two hundred and forty-two (242) Queries on the Store Accounts, of which three hundred and ninety-seven (397) have been satisfactorily settled.

The number of expenditure queries raised shows an increase of 172 as compared with the number raised during the previous financial year, and in explanation it is submitted that audit activities were extended in the examination of Store Accounts generally, with special reference to the Police and Medical Departments Accounts which resulted in a total of 103 and 76 observations respectively. I am, however, glad to report a con- siderable improvement in the Store Accounts of these depart- ments during the first half of the current year.

The total expenditure for the financial year 1928 amounted to $21,230,242.24 being an apparent decrease of $952,802.76 on the total estimated expenditure and an increase of $385,177.55 as compared with the total actual expenditure for the previous financial year.

SUPPLEMENTARY VOTES.

12. During the financial year it was found necessary to obtain supplementary votes amounting to $1,504,477.00. Fur- ther sums amounting to $21,438.00 were voted in 1929 to sup- plement the 1928 Estimates. The total amount provisionally voted being $1,525,915.00. In comparing these totals with the Appropriation Account a difference of $4 will be observed which formed the subject matter of Audit Query No. 397/28E. This discrepancy is due to a clerical error in the preparation of the Account, and I am informed by the Treasury that the error, together with the Printer's errors on pages 27, 45 and 47 of the Appropriation Account (Audit Query 398/29 and 399/30E) have been duly reported to the Secretary of State.

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