No. 59/61.
A (2) 33
Enclosure T.
PUBLIC WORKS (1927) LOAN.
From Auditor
Hong Kong
2nd June, 1931.
To Hon. Treasurer
PUBLIC WORKS LOAN 1927.
Hong Kong.
There are certain points arising from audit of the Public Works Loan Accounts for 1930 upon which I should be glad if I may be given further information.
2. On 31st December 1930 the balance of the Public Works Loan Cash Book is nil and the Pass Book balance is $188,082.53 representing merely outstanding cheques which by January 16th 1931 were all cleared. I take it therefore that it is intended that from January 1st 1931 the Public Works Loan as a separate accounting unit ceases to exist and that in consequence the only item of the Assets and Liabilities Statement on 31st December 1930 which has any bearing on this Loan accounting is $623,066.83 included in the asset "Advances on account of future Loan." May I be informed please of the position and, if my view is correct, how it is proposed to incorporate in the Colony's accounts the ledger balances at present shown in the Loan Books as existing on 1st January 1931.
3. On 22nd December 1930 $59,366.52 of the Public Works Loan was placed on Fixed Deposit and though it is shown on the Annual Loan Statement for 1930 (increased by a further $1,701.50) as a "Sinking Fund Reserve" it does not appear in the books of the Colony. I am not certain of the object of this account but whatever this may be it would seem that it should be shown in the Colonial Balance Sheet.
4. A cheque for $89,833.68 is shown on the Annual Loan Statement as having been refunded to the Colony on 31st December 1930, the Loan cheque bears that date, as also does the Treasury receipt. Yet the transaction is not included in the Colony's Balance Sheet for the year. This also requires explanation.
(Sgd.) P. L. Collisson,
Auditor.