122. Arrangements have now been made whereby all outstanding Conversion Vouchers will be reconciled quarterly and any material not used by the Tailors will be returned unless it is proposed to make immediate use of it. If such action is taken the position should show considerable improvement, but the piecemeal supply of manufactured articles and the dilatory manner in which orders placed with the Contractor are executed, cannot be regarded as satisfactory.
123. In order to facilitate check and to improve the system of accounting for transactions relating to the manufacture of clothing, etc. a revised form for use as a Conversion Voucher was drawn up by Audit which would provide for the insertion of all necessary particulars.
124. Air Raid Precautions Department--Publications
The stores records of this department were in the first instance very indifferently kept. As a result of Audit representations proper Stores Ledgers were brought into use, and apparent discrepancies between the old ledger balances and the stocks on hand, of a value of $436.50, were written off with the approval of Government. In this connection it may be recorded that the shortages were probably due to the failure to record free issues to students and to other Government Departments. A permanent storekeeper has since been appointed to this department, and the store accounts have recently been kept in a more satisfactory manner.
125. Annual Boards of Survey on Stores (C.R. 344, and G.O. 21 and Stores Regulations 68/72).
In accordance with Colonial Regulation No. 344 the usual Annual Boards of Survey, appointed by Government, inspected and reported on all stocks of Government Stores. The reports of these Boards were on the whole satisfactory. With reference to paragraph 121 of the Audit Report on the 1938 accounts, the stores of the smaller departments and all Government Medical Institutions were subjected to check by Boards shortly after the close of the financial year. Unallocated stocks were checked in test only as permitted by local Regulation.
126. Tools and Plant and Office-equipment-Departmental Survey of, (Stores Regulations 145 (4) and 161).
In compliance with Local Allocated Stores Regulations a departmental survey was made by most Government departments at the close of the year, of all Tools and Plant and Office furniture and equipment, etc., held on Inventory charge.
127. Cases of failure to do so were brought to notice by Audit and the necessary action was taken.
128. Reconciliation of Unallocated Store Balances with the Accountant-General's Accounts.
Statements showing how reconciliation has been effected between the balances of the Unallocated Stores Accounts in the books of the Accountant-General, and those shown by the departmental store accounts, have been received and checked by Audit. The accounts concerned are:
(a) Central Stores.
(b) Railway Stores.
The Statements are submitted as Enclosures 18 and 19 to this report. Stock Sheets of these stores as at 31st December, 1939 have also been examined by Audit.
K. KOWLOON-Canton RAILWAY.
129. A copy of the Manager's report on the working of the British Section of the Kowloon-Canton Railway for the year 1939, which was submitted to the Auditor on the 23rd April, 1940, is forwarded as Enclosure No. 21 to this report.