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of the appropriate Funds. The view was expressed to the Accountant General that cash balances held on current accounts at a bank should not be classified under Investments in the Statement of Assets and Liabilities. The Acting Accountant General .agreed with this view and stated that all balances held on current account would be shown under Cash Balances in the accounts for the year ending the 31st March, 1948.
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116. Regarding the items shown under "Miscellaneous Funds Sundry Fixed Deposit - 21,689,000", "Hong Kong Government 3% Loan 1940 - $5,559,000", these amounts are held on account of surplus funds, and are incorrectly shown in the Statement of Assets and Liabilities at 31st March, 1947, as Investments held on behalf of "Miscellaneous Funds" , The matter was brought to the notice of the Accountant General, and the view was also expressed that the Fixed Deposit should not, in any event, be classified under Investments but should be shown as part of the cash assets, though distinct from, Cash in Bank on current account. The Acting Accountant General agreed that the Fixed Deposit of $1,689,000 and the Investment of $5,559,000 in Hong Kong Goverment Loan, 1940, were not held on behalf of any specific fund but on account of the Colony's surplus balances and also that the Fixed Deposit should be shown as part of the cash assets. The Acting Accountant General stated that he did not propose to amend the Statement of Assets and Liabilities at 31st March, 1947, as the Statement had already been printed and published.
117. Except where otherwise stated in the succeeding paragraphs, sterling investments have been verified with the Crown Agents for the Colonies' Certificates of stock held on the 31st of March, 1947, and stocks have been revalued in accordance with the prescribed procedure to show the market value on this date. Cash balances held on the Bank Current Accounts and Fixed Deposits have been verified with certificates or Deposit Security Receipts of the Banks concerned, and the balances have been reconciled with the relevant Cash Book balances.
118.
In the case of the coins at the Hong Kong and Shanghai Banking Corporation to the value of $479.60 at the 31st March, 1947, held on behalf of Nickel Coinage Security Fund (See paragraph 115(c) of this report), the asset has been verified with a certificate from the Crown Agents for the Colonies. The nature of this holding of coin and the reasons why it is recorded as an Investment on behalf of the Nickel Coinage Security Fund, are not entirely clear and the matter is at present being investigated.
119. Investments in Hong Kong Government Loans on behalf of "S.C.A. Funds" (Funds held by the Secretary for Chinese Affairs) totalling $70,000.00 have been verified with Bonds held by the Accountant General or Securities Certificates from the Hong Kong and Shanghai Banking Corporation for Bonds held by the Bank. In the case of the "Chinese Public Dispensaries Fund, (6,000)", the investment is held in Hong Kong Government 4% Conversion Loan, 1933, and not 1934 Loan as shown in the printed Statement of Assets and Liabilities at the 31st of March, 1947. Investments on behalf of the "District Watchman Fund ($58,000)" are held in the llong Kong Government 4% Conversion Loan, 1933, (838,000) and 3% Dollar Loan, 1940 ($20,000). In the printed Statement of Assets and Liabilities at the 31st March, 1947, the investment on behalf of the "District Watchmen Fund" is shown as "Hong Kong Government Loans, 1934 and 1940. In the case of the "Passage Money Fund (86,000)", the investment is held in Hong Kong Government 4% Conversion Loan, 1933, and not the 1940 Loan as shown in the printed Statement of Assets and Liabilities at the 31st March, 1947.
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