A (2) 27
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Wireless Services.
144. As from the 1st January, 1938, certain of the Colony's Wireless Services were handed over to the Cable and Wireless Ltd. As a result of this transfer the services of some personnel were dispensed with and they were awarded gratuities or pensions calculated on the basis of "abolition of office." In addition a quantity of Government Wireless plant and equipment was also taken over by the Company on repayment.
Specimen Stamps.
145. Following the receipt of a Circular despatch from the Secretary of State, 'Specimen' stamps received from Berne which remained in the custody of the Postmaster General on 10th March, 1939 were destroyed by fire by a Board of Survey appointed for that purpose. Enquiries by Audit have failed to elicit any information as to how the early issues of stamps apparently received from Berne were disposed of. As the supply of Specimen stamps was considered to serve no useful purpose, steps have been taken with a view to its being discontinued.
Programme of Work.
146. With the exception of the audit of the final Division Sheets of the Kowloon-Canton Railway for November and December 1937 and those for the whole of the year 1938, also certain Parcel and Air Mail accounts with other Postal Administrations for 1938 which have not reached finality, the approved Programme of Work has been completed. In consequence of the Sino-Japanese hostilities in South China doubt exists as to the eventual rendition of the Railway Final Division Sheets.
147. There has been no material departure from the approved Programme, but examination has in some instances been extended to embrace subsidiary records which have formerly not been subjected to audit.
Local Audit Inspections and Surprise Surveys.
148. Surprise audit inspections and surveys continue to prove their value. One hundred and sixty-five surprise surveys of cash etc. were carried out during the year by the Audit Department, usually with satisfactory results. In addition to the results of local inspections mentioned elsewhere in this Report the following may be noted:
(a) A surprise survey of one Government office revealed a cash surplus of $585.87 over the balance shown in the Cash Book, and other unsatisfactory features were observed, which did not however indicate dishonesty on the part of the officials concerned. From explanations subsequently tendered it appeared that the cash found in the safe was composed of private, Imprest and Revenue Cash, and in addition included sums of money which had been charged out in the accounts as final expenditure some months previously, but which had not actually been handed over to the persons entitled thereto. Appropriate action was taken to prevent a repetition of this state of affairs.
(b) A surprise Audit survey of postal stocks revealed the existence in a Government safe of a quantity of jewellery, watch chains etc. which had apparently lain there for many years. As exhaustive enquiries could not reveal their origin or ownership, they were sold by Public auction and the proceeds were credited to revenue.