(b) The existence of the Cash Balances, Sinking Fund and other Investments held by the Crown Agents has been agreed with the certified statements rendered by the Comptroller and Auditor-General.
(c) Fixed Deposits.
The receipts obtained from local Banks for sums appearing under this head have been seen by Audit.
78. Advances Miscellaneous
($78,218.02).
The balance under this head, at the end of the previous year, was $53,443.81. The 1939 figures therefore show an increase of $23,774.21, of which $10,180.95 is on account of work being undertaken for another Colonial administration. The remainder are of a routine nature which do not require to be commented on.
79. No advances have been outstanding for an unduly long period. A detailed statement of advances is attached as Enclosure No. 9.
80. Reserve Stocks of Essential Commodities. ($1,571,097.05).
This represents the cost price of rice stocks purchased to meet possible emergencies. At the request of Audit, Government appointed a Board of Officers to survey these stocks, but the members reported that it was impracticable to do so. They did however examine the Warrant Book of the Godown Company in whose warehouses the rice was stored, and found the balances shown therein to agree with the stock book maintained by the Government Food Controller. On pursuing the matter further the Auditor was advised that the Company could be held pecuniarily responsible for the correctness of the stocks as shown in their Warrant Book. In these circumstances a certificate of the Company testifying the correctness of the rice held by them on Government account was obtained and accepted.
81. In order to preserve secrecy the prior approval of the Legislature for the funds necessary to purchase these stocks was not sought, the transactions being financed by means of bank advances. The matter was nevertheless brought to the notice of the Legislature at a meeting of the Council held on the 12th October, 1939. It was further regularized by Ordinance No. 38 of 1939, which provided for the maintenance of reserve stocks of commodities essential for the vital needs of the community during war or other public emergency and matters incidental thereto.
82. Revaluation of Investments.
In accordance with Colonial Regulation 275 Investments were revalued on the basis of the current middle market price at the end of the year, with the following results:
Investments held on account of Net Amount of Depreciation How disposed of District Watchmen Nil Chinese Public Dispensaries Fund Nil Education Scholarship Fund -$750 Charged to Fund Nickel Coinage Account. Sinking Fund -£838-17-6 Met from Nickel Coinage Security Fund (Hong Kong 4% Conversion Loan) Sinking Fund -£1072-7-0