Appendix A (2).
REPORT TO THE DIRECTOR OF COLONIAL AUDIT ON THE AUDIT OF THE ACCOUNTS
OF HONG KONG 1933.
Subject to the comments contained in this report the accounts generally have been satisfactorily kept and rendered and the existing regulations appear to provide reasonable accounting protection against irregularities and fraud.
2. The relation between the excess of Assets over Liabilities for the years 1932 and 1933 is established as follows:
Excess 31st December 1932 $12,847,062.24
Revenue 1933 32,099,277.84
$44,946,340.08
Expenditure 1933 31,122,714.75
Excess of Assets 31st December 1933 $13,823,625.33
3. Comparison of the revenue and expenditure for the year with the approved Estimates and with previous years is dealt with fully in the Treasurer's Report (Enclosure M.) and in the detail statements (Enclosures C. and D.).
4. Briefly, the fall of $2,000,000 in revenue from the estimated amount is attributed to general trade depression, while the fall in expenditure is due partly to actual savings and partly to dollar fluctuations, the Estimates having been framed on a 1s. 2d. basis though the average rate throughout the year was 1s. 4d., thus effecting a saving of over 13 per cent. on sterling commitments which are a considerable proportion of the Colony's expenditure.
6
AUTHORITY FOR EXPENDITURE 1933.
5. The Estimates for the year received the approval of the Secretary of State in his Despatch No. 10 of 10th January 1933 and were passed by the Legislative Council in Ordinance No. 29 of 1932.
6. During the year Supplementary Estimates for a further expenditure of $631,658 were approved by the Secretary of State in his telegram No. 304 of 18th July 1933 and were passed by Resolution of Council on 31st August 1933.
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