A (2) 24
Central Stores-(Unallocated) Maximum balance of stocks.
124. The balance of this account as at the end of 1938 was $743,020.01 which was $43,020.01 in excess of the limit approved by the Secretary of State in his despatch of 25th January, 1938. This was reported to the Colonial Office accompanied by a request for the limit to be raised to $750,000 which received the approval of the Secretary of State in his despatch of 27th April 1939.
Reconciliation Statement.
125. A Statement showing how reconciliation has been affected between the balance of this account in the books of the Accountant-General, and that shown in the Central Stores Department records, is submitted as Enclosure 14.
This statement, and also the Stock Sheets have been examined by Audit.
Board of Survey on.
126. In accordance with Unallocated Stores Regulation No. 95 (c) the stock on hand as at the end of the year was checked in test by the Annual Board of Survey, approximately 175 items only being verified. The Board reported that the balances of the items checked were compared with subsidiary records (cards) only, and that a comparison with ledger balances was not possible as the posting from cards to ledgers had not then been completed.
The findings of the Board cannot therefore be regarded as conclusive.
General.
127. In June 1938 the Unallocated Stores, which had formerly been under the control of the Public Works Department, were transferred to a new Department entitled "Stores Department," under the direction of a Controller of Stores.
128. The question as to the desirability of continuing the existing practice whereby departments submitted requisitions on the Stores Department for all their stores requirements, whether the items were stocked or not, in lieu of purchasing the latter direct from Government Contractors or other local firms, has been taken up by Audit.
129. The general use of "Stock Cards," as a form of subsidiary record, in which are posted details of issues, has also been criticized.
While it is appreciated that it may be advantageous to employ subsidiary records for the purpose of recording issues of items in common use, and periodically to post the main ledgers from these records, it is considered uneconomical to extend the practice to all items. The system from an audit standpoint has certainly grave disadvantages.
130. With regard to the "write off" of $2,153.45 referred to in the Central Stores (Unallocated) Statement (Enclosure 14) as "Losses and Depreciation of Stores" and of which mention also is made in paragraph 112 (b) of this Report, when surplus stores are returned and taken on Unallocated Store charge, and the vote to which such stores were originally debited has lapsed, it has been the practice to credit the value assigned to the stores to the sub-head of Expenditure, “P.W.R.7(6) Stores Depreciation" (vide Store Regulations Nos. 102 & 103).
A (2) 24
Central Stores-(Unallocated) Maximum balance of stocks.
124. The balance of this account as at the end of 1938 was $743,020.01 which was $43,020.01 in excess of the limit approved by the Secretary of State in his despatch of 25th January, 1938. This was reported to the Colonial office accompanied by a request for the limit to be raised to $750,000 which received the approval of the Secretary of State in his despatch of 27th April 1939.
Reconciliation Statement.
125. A Statement showing how reconciliation has been affected between the balance of this account in the books of the Accountant-General, and that shown in the Central Stores Department records, is submitted as Enclosure 14.
This statement, and also the Stock Sheets have been examined by Audit.
Board of Survey on.
126. In accordance with Unallocated Stores Regulation No. 95 (c) the stock on hand as at the end of the year was checked in test by the Annual Board of Survey, approximately 175 items only being verified. The Board reported that the balances of the items checked were compared with subsidiary records (cards) only, and that a comparison with ledger balances was not possible as the posting from cards to ledgers had not then been completed.
The findings of the Board cannot therefore be regarded as conclusive.
General.
127. In June 1938 the Unallocated Stores, which had formerly been under the control of the Public Works Department, were transferred to a new Department entitled "Stores Department," under the direction of a Controller of Stores.
128. The question as to the desirability of continuing the existing practice whereby departments submitted requisitions on the Stores Department for all their stores requirements, whether the items were stocked or not, in lieu of purchasing the latter direct from Government Contractors or other local firms, has been taken up by Audit.
129. The general use of "Stock Cards," as a form of subsidiary record, in which are posted details of issues, has also been criticized.
While it is appre- ciated that it may be advantageous to employ subsidiary records for the purpose of recording issues of items in common use, and periodically to post the main ledgers from these records, it is considered uneconomical to extend the practice to all items. The system from an audit standpoint has certainly grave disadvantages.
130. With regard to the "write off" of $2,153.45 referred to in the Central Stores (Unallocated) Statement (Enclosure 14) as "Losses and Depreciation of Stores" and of which mention also is made in paragraph 112 (b) of this Report, when surplus stores are returned and taken on Unallocated Store charge, and the vote to which such stores were originally debited has lapsed, it has been the practice to credit the value assigned to the stores to the sub-head of Expenditure, “P.W.R. 7 (6) Stores Depreciation" (vide Store Regulations Nos. 102 & 103).
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