ENCLOSURE 3.
07
Memorandum by the Financial Secretary on the Report to the Director General, Colonial Audit, on the Financial and Accounting Methods of the Supplies, Trade and Industry Department.
Members of the Council are no doubt aware of the reasons which compelled the setting up of tis Department and of its early
history. Its functions are set forth with reasonable accuracy in
the first two paragraphs of the Report.
2.
In the conditions which existed after the re-occupation
of the Colony, it was clearly impracticable to follow the detailed
system of accounting laid down by Colonial Regulations, which was
designed for entirely different circumstances. It was obvious that
commercial operations of this kind, and on the scale involved,
would require considerable modification of these Regulations in the direction of orthodox commercial practice, if efficiency was to be maintained and public funds adequately safeguarded. Accordingly,
at a time when a complete breakdown in operation was threatened by
staffing difficulties, authority was given by the Governor to the
Director to carry on his trading activities on a commercial basis,
and to recruit his staff as best he might on commercial rates of
pay. It will be observed that the Director of Audit in his
paragraph 10 has queried the fact that certain members of the
staff were employed on a part-time basis, while others gave
their services in an honorary capacity without remuneration.
This was the only means of avoiding a breakdown and it was
extremely fortunate that there were persons with the necessary
commercial experience who were public spirited enough to offer
their services.
3.
The operation of the Department on a commercial basis
necessitated the opening of Sump ense Accounts to which payments and
receipts could be debited and credited. The following Suspense
Accounts were opened at various times as follows:-
Catering
Dry Goods
May 1946
12
(Marketing Section).