Page 16.
28:
the reasons given in paragraphs 4 and 69 to 71 of this report, it was impossible to complete the "Proof of the Balance Sheet" without providing extensive rootnotes, and it has been necessary also to prepare a Reconciliation Statement to show how the details in the "Proof of the Balance Sheet" agree with the total receipts and payments in the Annual Abstract Account. Both the "Proof of the Balance Sheet" and the "Reconciliation Statement" for enclosures (not printed) to this report.
LIABILITIES.
DEPOSITS - $25,750,657.03.
77.
His Majesty's Government, Included in the figure of $13,332,592.81 for Deposits classified under "H.M. Government" in the Statement of Assets and Liabilities at the 31st of March, 1947, is an account for "Colonial Office" to which was credited the sum of $12,000,000, being the equivalent of an amount of £750,000 received from His Majesty's Government as a grant-in-aid as follows:-
(a) To meet expenditure estimated
by the Crown Agents up to 30th April, 1946
$2,400,000
(£150,000)
(b) To meet expenditure estimated
by the Crown Agents up to 31st May, 1946
$6,400,000
(£400,000)
(c) Grant in aid for 1946/47
$3,200,000
(£200,000)
$12,000,000
(€750,000)
The grant is referred to in Footnote (1) to the Statement of Assets and Liabilities (Appendix 1 of the Financial Report), but it appears that this amount has been incorrectly classified to Deposits instead of to Revenue in the accounts for the period 1946/47. The matter was brought to the notice of the Acting Accountant General who agreed with this view and confirmed that the total revenue figure of $82,141,556.04. for the period 1946/47, and the balance shown in the General Revenue Balance Account in the Statement of Assets and Liabilities at the 31st of March, 1947, were accordingly understated by $12,000,000. The Deposit account has since been closed in the 1947/48 accounts by a transfer of the $12,000,000 to Revenue.
78. Revenue Reward Fund.- $10,000. During the financial period under review, proceeds from the sale of con fiscated goods amounting to $244,272.43 have been credited to this account from which an amount of $237,550.74 has been transferred to Revenue (Revenue Head 10, Miscellaneous Receipts, Subhead "Other Miscellaneous Receipts"), and payments of rewards amounting to $26,757.11 have been charged to the account. In this connectim it came to the notice of this Department that, in 1941, the proceeds of sales of confiscated stores were paid into a special deposit account "Revenue Reward Fund" for the payment of rewards on a very modest scale with a high limit of $200 unless special approval was obtained for more. The Deposit account was reopened during the period of the British Military Administration for the same purposes with an advance of $2,000. appears, however, that the approval of the Secretary of State has not been obtained for this method of accounting for these receipts and payments and it has been recently brought to the notice of Government that, in the absence of this authority, all receipts from the sale of confiscated goods should be brought to account as revenue, and all payments of rewards should be charged to an approved Head and Subhead of Expenditure, and that the necessary provision should be made in the
It