131. These and other credits have been utilized during the year for the purpose of writing down the value of stores, and in reply to Query No.115/E (copy enclosed) the "write off" referred to above is stated to be due to the necessity to reduce the book value of certain stocks of steel which had deteriorated owing to climatic conditions. This "write off," together with similar transactions during the year, have not apparently received Government sanction.
132. It is observed that the total credits to the expenditure sub-head "Stores Depreciation" amounted to $5,634.19 which exactly equalled the total debits, while the detailed statement of expenditure records no expenditure on the sub-head, although $100 was the amount of the estimate. The reason for the "saving" is stated as "not required."
133. The re-submission of the Audit Query referred to above presses the question of this irregular accounting procedure which in the opinion of audit defeats Legislative Control and stultifies the Estimates. The query also requested information as to whether the whole of the credits for stores returned were in respect of lapsed votes, and further pointed out that depreciation of stores necessitating the writing down of book values must receive Government approval.
134. From the information at present available it would appear that the expenditure sub-head "Stores Depreciation" has been operated on throughout the year more in the nature of a suspense account. This supposition is somewhat confirmed in the reply to Audit Query No.159/R (copy enclosed) and a reply to the submissions referred to in paragraph 133 is awaited to enable Audit to submit further representations to Government.
Kowloon-Canton Railway (Unallocated Stores).
135. The maximum standard stock fixed for the Railway Stores viz. $175,000 has not been exceeded. At the 31st December, 1938, the value of the stock amounted to $147,952.06. A statement showing how reconciliation has been effected between the balance recorded in the Accountant-General's books and the departmental records, is forwarded (Enclosure 20). This Statement, also the Stock Sheets, have been examined by Audit.
K. GENERAL.
Exchange Fund accounts.
136. The above accounts for the year 1938 have been examined by the Auditor with satisfactory results. The Balance Sheet showing the position as at the end of the year has it is understood been submitted to the Secretary of State.
137. The existence of the assets of the Exchange Fund has been verified with the certificate furnished by the Comptroller and Auditor-General.
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131. These and other credits have been utilized during the year for the purpose of writing down the value of stores, and in reply to Query No. 115/E (copy enclosed) the "write off" referred to above is stated to be due to the necessity to reduce the book value of certain stocks of steel which had deteriorated owing to climatic conditions. This "write off," together with similar transactions during the year, have not apparently received Government sanction.
132. It is observed that the total credits to the expenditure sub-head "Stores Depreciation" amounted to $5,634.19 which exactly equalled the total debits, while the detailed statement of expenditure records no expenditure on the sub-head, although $100 was the amount of the estimate. The reason for the "saving" is stated as "not required."
133. The re-submission of the Audit Query referred to above presses the question of this irregular accounting procedure which in the opinion of audit defeats Legislative Control and stultifies the Estimates. The query also requested information as to whether the whole of the credits for stores returned were in respect of lapsed votes, and further pointed out that depreciation of stores necessitating the writing down of book values must receive Government approval.
134. From the information at present available it would appear that the expenditure sub-head "Stores Depreciation" has been operated on throughout the year more in the nature of a suspense account. This supposition is somewhat confirmed in the reply to Audit Query No. 159/R (copy enclosed) and a reply to the submissions referred to in paragraph 133 is awaited to enable Audit to submit further representations to Government.
Kowloon-Canton Railway (Unallocated Stores).
135. The maximum standard stock fixed for the Railway Stores viz. $175,000 has not been exceeded. At the 31st December, 1938, the value of the stock amounted to $147,952.06. A statement showing how reconciliation has been effected between the balance recorded in the Accountant-General's books and the departmental records, is forwarded (Enclosure 20). This Statement, also the Stock Sheets, have been examined by Audit.
K. GENERAL.
Exchange Fund accounts.
136.
The above accounts for the year 1938 have been examined by the Auditor with satisfactory results. The Balance Sheet showing the position as at the end of the year has it is understood been submitted to the Secretary of State.
137. The existence of the assets of the Exchange Fund has been verified with the certificate furnished by the Comptroller and Auditor-General.
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