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Page 34.
158. Although queries have usually been dealt promptly with by the Treasury, there have been delays by departments (the Supplies, Trade & Industry Department in particular), to whom they have been referred by the Accountant General, in replying to relevant matters. In the early months of the financial period under review there were a number of cases of alleged loss of queries by some departments, and a clerk of one department who was eventually convicted of fraud, was apparently responsible for the destruction of a number of queries which related to irregularities committed by him.
159.
GENERAL.
Local Audit Inspections. In addition to the instances referred to elsewhere in this report, local audit inspections of Government departments disclosed the following irregularities which were appropriately dealt with:-
(a) Harbour Office. A surprise survey of cash revealed that I.0.U's
to the extent of $460 were held in lieu of cash which had been advanced by the Shroff (cashier) to members of the staff. It was also observed that the regulations in regard to the return of unpaid Treasury vouchers had not been complied with.
(b) Hong Kong Volunteer Defence Corps. A surprise survey of cash
revealed a shortage of $940. The amount was repaid.
(c) Police. On a number of occasions, shortly after the resumption of the Civil Administration, when cash was surveyed, 1.0.U's were discovered in respect of Government cash borrowed by officers. The attention of the officers was drawn to General Order 297(3). (d) Supplies, Trade & Industry Department - Rice Section. A local
audit survey of Imprest and other cash disclosed a shortage of $1,344, and, in addition, a large number of 1.0.U's signed by officers of the Department which were held in lieu of cash, and a cheque for $100 signed by a Government officer. After a re-check of the cash the following day, the shortage was found to have been reduced to $4.00. On the suggestion of this Department a circular was issued by the Accountant General forbidding the exchange of Government money for 1.0.U's. At a further cash survey held at this Department on the 21st June, 1948, however, it was observed these instructions were not being adhered to and that the cash balances surveyed again included 1.0.U's from the officers of the Department amounting to $250 and other amounts owing by members of the staff not supported by I.0.U's totalling $120. The matter was brought to the notice of the Accountant General.
160.
The statement of all claims abandoned (including arrears of revenue, except tax revenue due by particular individuals) and of all losses of cash and stores which have been written off within the year, has not yet been seen. The attention of the Colonial Secretary has
been drawn to the matter.
161.
This report was drafted in part by Mr. A. Pollard, Director of Audit, before he left the Colony on retirement on the 9th March, 1947, and was completed after his departure when the final accounts for the eleven months ended the 31st March, 1947, were submitted for audit examination. The following appreciation of the Audit staff was written by Mr. Pollard before his departure:·