A (2) 5

Reviewing the statement, it will be observed that with the exception of outstanding revenue in respect of Leased Lands, and Premia on New Leases the Treasury control over the collection of revenue is satisfactorily maintained.

With reference to the outstanding Revenue under the heads Premia and Leased Lands, I would explain that these arrears are the result of unforeseen difficulties which have arisen in connection with the completion of the Praya East and Kowloon Tong Building Schemes. The Government have taken necessary action for recovery of the amount due.

EXPENDITURE 1928.

11. The Expenditure Accounts of the Colony have been examined in accordance with the general procedure. Three hundred and ninety-nine (399) Queries were raised in the course of the examination of the general expenditure accounts included in which are two hundred and forty-two (242) Queries on the Store Accounts, of which three hundred and ninety-seven (397) have been satisfactorily settled.

The number of expenditure queries raised shows an increase of 172 as compared with the number raised during the previous financial year, and in explanation it is submitted that audit activities were extended in the examination of Store Accounts generally, with special reference to the Police and Medical Departments Accounts which resulted in a total of 103 and 76 observations respectively. I am, however, glad to report a considerable improvement in the Store Accounts of these departments during the first half of the current year.

The total expenditure for the financial year 1928 amounted to $21,230,242.24 being an apparent decrease of $952,802.76 on the total estimated expenditure and an increase of $385,177.55 as compared with the total actual expenditure for the previous financial year.

SUPPLEMENTARY VOTES.

12. During the financial year it was found necessary to obtain supplementary votes amounting to $1,504,477.00. Further sums amounting to $21,488.00 were voted in 1929 to supplement the 1928 Estimates. The total amount provisionally voted being $1,525,915.00. In comparing these totals with the Appropriation Account a difference of $4 will be observed which formed the subject matter of Audit Query No. 397/28E. This discrepancy is due to a clerical error in the preparation of the Account, and I am informed by the Treasury that the error, together with the Printer's errors on pages 27, 45 and 47 of the Appropriation Account (Audit Query 398/29 and 399/30E) have been duly reported to the Secretary of State.

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