104. The October Division Sheets have only recently been received from Canton and have therefore not yet been submitted for audit, while those for November and December have not yet been received. The delay in rendering these statements can be attributed to the difficulties which have to be contended with by the Cantonese Authorities.
105. Surveys of the Cash Balances etc. at the Railway Head Office, Railway Stations, and Stores, were made during the year and call for no comment.
106. It was brought to notice by Audit that in some cases money owing to the Railway had been treated as revenue as soon as it had been earned, but in other cases it had not been treated as revenue until collected. It has now been agreed that all revenue will be credited in the Railway ledgers when earned, thus enabling a complete reconciliation to be made with cash payments and amounts outstanding.
107. The net profit on the Operating Account of the Railway for the year was $436,935.30 while that for the previous year amounted to $454,733.00. This shows a reduction of $17,798.00 as compared with 1936, but is due to the fact that $80,883.12, being the extent of the damage caused to the Railway by the Typhoon of September 1937, was charged to the Operating Account of the year 1937.
O.—MISCELLANEOUS.
108. New Form of Colonial Accounts.
The new system of Colonial Government Accounting as described in Colonial Circular despatch of 25th November, 1937, has not yet been adopted by the Hong Kong Government. It is understood that the matter is under correspondence with the Secretary of State.
109. Staff.
Mr. P. L. Collisson, O.B.E., Auditor proceeded on leave on 20th March, 1937, and retired on pension as from 26th November, 1937.
Mr. T. Dalin, acted as Auditor from 20th March, 1937 to 26th April, 1938.
28th July, 1938.
A. POLLARD,
Auditor.