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The position with regard to this asset is therefore the same as reported in previous years.
23. This procedure has been debated at length and one aspect of it, the Departmental Bank Accounts, was the subject of a conference in London in November last between the Director of Colonial Audit, the Treasurer and the Auditor, at which the local difficulties, some of them even said to be psychological, of making payments during the year in which they were due were discussed.
24. Without labouring the point further the fact remains that Government accounting is one of Cash Receipts and Pay- ments and that so long as the regulations provide for account- ing under this system so long will the charging in a year's accounts of sums not actually disbursed be irregular.
25. Should the regulations be locally impracticable then it is submitted that the Secretary of State's authority should be obtained for any departure therefrom.
26. The suggestion was made at the Conference that the Treasurer and Auditor should on their return from leave go further into this question in so far as the Departmental Bank Accounts are concerned and this is being done but there will still remain the question of the charges made but not disbursed within the year by the Head Office of the Treasury itself,
27. The Certificate of the Comptroller and Auditor General has been received for all Assets held by the Crown Agents on 31st December 1933.
LIABILITIES.
SUITORS FUND. $587,617,30.
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28. In addition to this amount a sum of $22,977.01 is, for convenience of accounting, included in the item Miscellaneous Deposits.
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EXCHANGE ADJUSTMENT. $136,808.00.
29. This item is incorrect in so far that provision has been made in excess of requirement. This extremely complicated section of the accounts has for years been the subject of lengthy discussions and correspondence and as reported to you in 1931 (paragraph 23) it was thought that finality and agree- ment had been reached.
30. However, during the year under review a departure was made from the method agreed upon and the figure held as a liability represents more than what was formerly decided as
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being necessary. The view has all along been held by this de- partment that the liability should represent the dollar differ- ence, arising from fluctuations, of the Sterling Investments and Holdings of the value of the Stocks as shown in the Assets (£112,833.17.9) at the December rate and their value at the original dollar rate of purchase.
31. A copy of Query 195/E is attached (Enclosure 0.) in which the Treasurer, while stating that he does not wish to re-open the discussion, gives the information that all stocks are now being realised and will be disposed of during 1934. This will obviate the necessity for any future provision in this Suspense Account so far as Investments are concerned and the much-debated question, which after all is to a great extent an academic one, will solve itself. The excess liability at the 31st December 1933 will disappear, though by being passed through the Exchange Account it will ultimately affect the balance transferred to revenue or expenditure.
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SUSPENSE ACCOUNT. $967,147.31.
32. The main item in the figures leading to this liability is a Balance of $975,413.78 on account of Military Con- tribution. The position with regard to this liability was ex- plained in paragraphs 45/6 and Enclosure Q. of the Annual Report for 1930 and, except that the amount increases annually, remains as then reported. An Ordinance dealing with the whole question of Military Contribution is under preparation and the ultimate disposal of this large amount will presumably be considered in due course.
33. Discussion took place in 1932 between the Colonial Office, the War Office and this Government on the subject of Military Contribution leading to considerable additions to the deductions allowed from the revenue assessable for contribu- tion. These came into operation first when calculating the contribution in respect of 1932.
34. As certain figures relating to capital expenditure of past years as far back as 1917 came into the calculation it has therefore been necessary to retrace the audit somewhat. A few minor discrepancies were revealed but the figures relating to certain capital expenditure (on Wireless Telegraphy), sup. ported as they are by the certificate of the Director of Public Works and agreed to by the Treasurer, may be accepted as a correct basis for future calculation.
TRADE LOAN RESERVE. $1,070,609.68.
35. A summary of the transactions of the Trade Loan Account from the commencement is given in paragraph 20 of the Treasurer's report and it is pointed out that this reserve
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