Appendix “A”
Appendix A (2).
REPORT TO THE DIRECTOR OF COLONIAL AUDIT ON THE AUDIT OF THE ACCOUNTS OF HONG KONG FOR THE YEAR 1938.
1. The accounts of the Colony of Hong Kong for the year ended 31st December, 1938, have been examined by the local Audit Department.
A. MANNER IN WHICH THE ACCOUNTS HAVE BEEN KEPT AND RENDERED.
2. Subject to the observations contained in this report the accounts were submitted for audit promptly and were satisfactorily kept and rendered. The accounts of the Colony were closed on 31st January, 1939, which early closing cannot but be regarded as highly satisfactory, and a reflection of efficiency in the Accountant-General's Department.
3. In considering this report it should be borne in mind that only a small percentage of the financial matters covered by audit required to be commented on. Any criticisms made must not therefore be construed as conveying a general reflection on the administration of public expenditure which, in the opinion of the Auditor, continues to maintain a high standard.
4. The annual statements prepared by the Accountant-General were promptly rendered. The draft Appropriation Account, (detailed Statement of Expenditure) was submitted for audit on 1st May, 1939.
5. Reconciliation Statements of Unallocated Stores accounts, analyses of deposit accounts etc., which are prepared by other Departments, were usually received later than the Treasury statements.
Simplification of accounts.
6. From time to time during the year suggestions were made by Audit with a view to simplifying the accounting procedure employed in various Government Departments, which in numbers of instances seemed unnecessarily laborious and cumbersome. It may be of interest to observe that according to paragraph 80 of the Audit Report for the year 1930 my predecessor held much the same view.
7. The proposals, which affected the revenue accounts of a number of Government Departments, and more particularly those of the Police Department, as well as Stores accounts (referred to in paragraph 114 of this report) were generally agreed to and adopted.
Misallocations and errors of classification discovered too late for adjustment.
8. Twenty-one misallocations affecting sub-heads of revenue, misallocations of expenditure were disclosed by Audit. Six of the former were discovered too late for adjustment and are shown in Appendix "A" to this report.