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A (2) 6
—
now far exceeds the outstanding capital ($574,500.50) shown in the Assets. A statement is enclosed (L.) showing the position of the account at 31st December 1933.
GOVERNMENT HOUSE AND CITY DEVELOPMENT FUND. $1,227,666.28.
36. This item represents revenue received from the sale of certain lands, less $29,833.72 already expended on pre- liminary works, which will be used to finance a general scheme of City Development, etc.
37. The proposal to treat this scheme as a separate unit apart from the general revenue and expenditure of the Colony was submitted to the Secretary of State who approved this departure from normal accounting procedure provided that it was further regularised by local enactment. An Ordinance put- ting this into effect is now under consideration.
MISALLOCATIONS.
38. With one trivial exception of negligible amount all errors of misallocation were reported and adjusted before the accounts for the year were closed.
ARREARS OF REVENUE.
39. The position as regards arrears of Revenue is, as usual, satisfactory. Of the $716,384 outstanding on 31st December 1933, $666,972 had been collected by the end of April, $22,680 was written off, and action is being taken on the remaining $26,732.
CHINA COMPANY FEES.
40. The annual local inspection of the Registrar of Com- panies at Shanghai was made during the year and the accounts were audited to 30th September 1933.
41. As a result of this inspection a small amendment to the Companies Ordinance 1932, was enacted (Ordinance No. 29 of 1933) providing for a simplification in the method of pay- ment of these fees.
The observations raised during the examination of the ac- counts were satisfactorily settled.
42. The revenue from this source during the year was $141,342.00, a decrease of $23,657 from last year.
PUBLIC WORKS LOAN.
43. In June, 1933, an Ordinance was passed (No. 15 of 1983) authorising redemption of the Public Works 1927 6% Loan and alternatively allowing bondholders to exchange their
A (2) 7
bonds for a new issue of conversion bonds at 4%. The great majority of the bondholders elected for conversion and the position shortly after the end of the year (23rd January 1984)
was:-
Converted Redeemed
Unaccounted for
Total
$4,838,000
41,000
48,000
$4,927,000
44. Thus only $41,000 had up to this date been required to meet the redemption. No recourse was necessary to the Sinking Fund and actual redemptions were met from the Deposit Fund referred to in paragraph 62 and enclosures of the Annual Report for 1930.
45. There is still remaining in this Deposit Account at 31st December 1933, a balance of $46,154.03 which together with certain rents accruing will more than cover any future redemp- tions.
No information is at present available of any decision having been reached with regard to the ultimate disposal of the Sinking Fund (Vide Section 10 (5) of the Ordinance).
SHING MUN VALLEY WATER SCHEME.
46. The accounting for this work is carried on under the Imprest System. After a preliminary imprest of $10,000 the amount was in March 1933 fixed at $50,000 from which sum the bulk of the local payments are made.
47. A certain amount of difficulty was experienced at first in bringing the accounting into line with the Government system but a form of accounts was drawn up by this depart- ment towards the end of the year and, with the concurrence of the Treasurer, adopted by the Resident Engineer and appears to be working smoothly.
48. Similarly, after a not too satisfactory start, the store accounting has been placed on a sound footing. An intensive audit survey of stores was carried out in December 1933 and various discrepancies adjusted.
KOWLOON-CANTON RAILWAY.
49. A copy of the Annual Report of the Manager of the Railway is forwarded (Enclosure N.) and full comparisons of the revenue and expenditure with the Estimates and with the revenue and expenditure of previous years are contained therein.
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