A (2) 9.
47. Copies of minutes which have been exchanged locally on this year's contribution are attached to the relevant enclosure.
CONTRACTS FOR PUBLIC WORKS.
48. It was necessary during the year to draw the attention of the Government to certain unsatisfactory features revealed in the audit of payments made for work done under Contract.
As practically the whole of the construction and maintenance of Public Works is performed by contractors, the matter is of some importance and laxity in keeping to the terms of a contract has a definite effect on the Colony's finances.
49. These contracts provide that the work should be performed in a certain time, that penalties should be enforced if that time is exceeded, that a certain proportion of the amount due should be withheld for a definite period, and that security, previously deposited, should be retained pending the final passing of the work.
50. A number of instances were brought to light in audit in which these terms were not adhered to, and in two of those queried, fines of $5,000 and $2,850 were imposed.
An extreme instance was one in which there was a delay of 58 weeks on a 6 months contract for approximately $16,000. Here, a two weeks' penalty of $200 was imposed.
In another case, the accounting history of a seven weeks contract, itself not correctly adhered to, extended over sixty weeks from the commencement of the work.
Copies of minutes passed with regard to these two contracts are attached (Enclosure R).
51. The opinion of the Crown Solicitor was obtained that any important deviation from the terms of a contract should form the basis of a supplementary clause to be drawn up and agreed to by both parties, and a form of report has now been adopted by which the various terms of each contract will be watched by the Executive Engineer. A substantial improvement in the accounting should result.
TRADE LOAN ACCOUNT.
52. This account has been examined in detail, and the securities for outstanding loans inspected.
The following statements are forwarded:—
1. Balance Sheet.
2. Working Account.
3. Statement explaining incorporation of Trade Loan items in the Colony's Statement of Assets and Liabilities.
A (2) 9.
47. Copies of minutes which have been exchanged locally on this year's contribution are attached to the relevant en- closure.
CONTRACTS FOR PUBLIC WORKS.
48. It was necessary during the year to draw the attention of the Government to certain unsatisfactory features revealed in the audit of payments made for work done under Contract.
As practically the whole of the construction and maintenance of Public Works is performed by contractors the matter is of some importance and laxity in keeping to the terms of a contract has a definite effect on the Colony's finances.
49. These contracts provide that the work should be per- formed in a certain time, that penalties should be enforced if that time is exceeded, that a certain proportion of the amount due should be withheld for a definite period and that security. previously deposited, should be retained pending the final passing of the work.
50. A number of instances were brought to light in audit in which these terms were not adhered to, and in two of those queried fines of $5,000 and $2,850 were imposed.
An extreme instance was one in which there was a delay of 58 weeks on a 6 months contract for approximately $16,000. Here a two weeks penalty of $200 was imposed.
In another case the accounting history of a seven weeks contract, itself not correctly adhered to, extended over sixty weeks from the commencement of the work.
Copies of minutes passed with regard to these two contracts are attached (Enclosure R).
51. The opinion of the Crown Solicitor was obtained that any important deviation from the terms of a contract should form the basis of a supplementary clause to be drawn up and agreed to by both parties and a form of report has now been adopted by which the various terms of each contract will be watched by the Executive Engineer. A substantial improve- ment in the accounting should result.
TRADE LOAN ACCOUNT.
52. This account has been examined in detail and the securities for outstanding loans inspected.
The following statements are forwarded:—
1.
Balance Sheet.
2. Working Account.
8. Statement explaining incorporation of Trade Loan items in the Colony's Statement of Assets and Liabilities.
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