to a special account and the authorisation of

revenue expenditure without appropriation.

6

3. It did not appear to us that the

Governor's objections to carrying out the scheme

through revenue and expenditure are at all con-

vincing; but, if the Secretary of State considers

that a departure from the normal accounting

procedure is necessary, we consider that the

scheme should be conducted under a special law

which would legalise the diversion of the revenue

from Land Sales from general revenue to the fund

and would also appropriate the expenditure on the

scheme for such special works as might be approved

by resolution of the Legislative Council and by

the Secretary of State.

4. This procedure would put the special

fund on a proper and legal footing and the detailed

expenditure would be regulated by means of an

Appendix to the Estimates as suggested by the

Governor.

29-12

A. 1. starding

Director of Colonial Audit.

33

I kept this to look at the arrangements

under which the Ceylon niversity und is

eld. I find that a sum was voted by the

Council to be invested as the nucleus of

a building and endowment fund, and that it

is apparently intended that the fund will

be expended under the provisions of the Ord-

inance which will be passed to establish

the niversity. This is parallel with tr

Harding s suggsetion above.

"rite to overnor on the lines of marked

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