# B. SUFFICIENCY OF EXISTING CHECKS AGAINST FRAUD.
15. Subject to the comments made in this report the existing regulations and accounting instructions, if adhered to, would appear to afford adequate security against fraud.
16. Cash Balances, etc. Annual Survey of.
In accordance with Colonial Regulation No. 300, Boards of Survey appointed by Government at the close of the year examined the cash and stamps in the hands of the Accountant-General and at the more important Government Offices in the Colony. Cash Balances shown as having been deposited with local banks were checked with certified bank statements. The reports of these Boards were satisfactory.
17. Internal Checks.
The check exercised in the Accountant-General's Office, with the exception of that on Entertainment Tax Returns, continued to be satisfactory, and vouchers included in the cash accounts usually bore signs of scrutiny and check.
18. The internal check in other departments appeared generally to be adequate but exceptions came to notice, some of which are indicated in this report. In all such instances appropriate action was taken to ensure more effective departmental supervision.
19. Cheque Registers.
In accordance with instructions contained in Colonial Audit Department Reference Sheet No. 221 of 24th May, 1939, Cheque Registers were introduced in all revenue collecting departments where such a record was not already in use. Detailed instructions regarding the keeping of these registers were issued by means of a Treasury Circular.
20. Securities furnished by Public Officers.
The Security Bonds lodged with the Accountant-General by public officers, in respect of the pecuniary responsibility attached to their offices, furnished in accordance with General Orders No. 70 and 364, and Colonial Regulation No. 301, were, as usual, inspected by Audit in collaboration with a legal officer.
21. In all cases where it was stated that cash had been deposited as security, the relative deposit was verified in the books of the Accountant-General.
22. A few instances were brought to notice in which it seemed that the holders of certain posts should be required to provide security, and suitable action was taken to obtain securities where further enquiries showed this to be necessary.
23. With regard to the provision of security by storekeeping officers, which question was raised by Audit and referred to in paragraph 22 of the 1938 Audit Report, this is now covered by General Order No. 70 (revised on 12.6.39). The amended order requires security to be furnished by officers who handle either cash or stores.
24. Frauds.
One case only of fraud came to notice during the year, and this did not result in any financial loss to Government. In this instance a Clerk, employed in the Fire Brigade Department, misappropriated sums amounting to $251.14. He was charged with embezzlement, sentenced to a term of imprisonment and dismissed from the service.