A (2) 22
and institutions of the Medical Department, and thus render them susceptible to check, Audit proposed the introduction of, and drew up a specimen form for, Main Inventory ledgers for the following:-
(a) Central Medical Store-Surgical Instruments, etc.
(b) Stewards Store:
(i) Crockery and cutlery.
(ii) Furniture.
(iii) Other hospital equipment and accessories.
(c) Matron's Store-bedding and linen.
116. It is intended that these Main Inventories shall be used in conjunction with departmental inventories, and they should record the receipt of all equipment issued to the department and show the distribution thereof.
117. Action is being taken to prepare these Inventories, and the matter is being kept in view.
118. Medical Department-Main Store Accounts.
Audit examinations of these accounts which were made during the year, disclosed an unduly large number of inaccuracies, and test surveys revealed numerous discrepancies between ledger balances and stocks on hand. These errors appear to have been due largely to the inexperience of the clerks engaged on the work of posting the store ledgers, and to confusion between reserve and main stocks. The latest Audit examination however revealed a more satisfactory state of affairs, and the results of the Board of Survey held at the end of the year confirm this.
119. Railway Department---Sales of Coal.
The authority for the sale of coal to Railway Officials was questioned by Audit. On the matter being investigated it appeared that no formal sanction had been obtained for this practice and as there appeared no justification for it Government ruled that these sales should be discontinued.
120. Harbour Department--Yaumati Shipway Stores.
These were placed in charge of the Controller of Stores as from the 1st July, 1939. In future stores purchased for Harbour Department use will form part of the Central Store Unallocated stocks, but the stores taken over by the Controller, which are Allocated, will until exhausted be issued as required and without financial adjustment.
121. Police Department-Manufacture of Uniforms and Police personnel.
It has been customary for the Police and other departments to issue material from Government stocks to the approved Government Contractor for manufacture into uniforms and other articles of clothing for subordinate personnel. Audit examination of Police Store Conversion Vouchers kept for recording these transactions revealed a most unsatisfactory position in that issues of material over very considerable periods, to a firm which had held the Contract for a number of years, had not been fully accounted for. Further issues of cloth were made in bulk, whereas completed articles were being supplied in driblets over very extended periods. In numbers of instances part only of each order, which had been placed many months previously, had been completed at the date of audit, but no steps had apparently been made, either to insist on the early completion of the orders, or to obtain the return by the Contractor of the unused material. Certain of these orders remained incompletely executed for over two years. During this period many other similar orders were placed and further quantities of material to cover them were issued, with the result that at the date of audit material valued at no less than $2,554.67 had not been accounted for. After raising an Audit Query on this subject, material valued at $613.01 was subsequently recovered from the Contractors and articles accounting for the remaining material, viz., $1,941.66 were manufactured and supplied.
A (2) 22
and institutions of the Medical Department, and thus render them susceptible to check, Audit proposed the introduction of, and drew up a specimen form for, Main Inventory ledgers for the following:-
(a) Central Medical Store-Surgical Instruments, etc.
(b) Stewards Store:
(i) Crockery and cutlery.
(ii) Furniture.
(iii) Other hospital equipment and accessories.
(c) Matron's Store-bedding and linen.
116. It is intended that these Main Inventories shall be used in conjunction with departmental inventories, and they should record the receipt of all equipment issued to the department and show the distribution thereof.
117. Action is being taken to prepare these Inventories, and the matter is being kept in view.
118. Medical Department-Main Store Accounts.
Audit examinations of these accounts which were made during the year, dis- closed an unduly large number of inaccuracies, and test surveys revealed numerous discrepancies between ledger balances and stocks on hand. These errors appear to have been due largely to the inexperience of the clerks engaged on the work of posting the store ledgers, and to confusion between reserve and main stocks. The latest Audit examination however revealed a more satisfactory state of affairs, and the results of the Board of Survey held at the end of the year confirm this.
119. Railway Departinent ---Sales of Coal.
The authority for the sale of coal to Railway Officials was questioned by Audit. On the matter being investigated it appeared that no formal sanction had been obtained for this practice and as there appeared no justification for it Govern- ment ruled that these sales should be discontinued.
120. Harbour Department--Yaumati Shipway Stores.
These were placed in charge of the Controller of Stores as from the 1st July, 1939. In future stores purchased for Harbour Department use will form part of the Central Store Unallocated stocks, but the stores taken over by the Controller, which are Allocated, will until exhausted be issued as required and without financial adjustment.
121. Police Department-Manufacture of Uniforms and Police personnel.
It has been customary for the Police and other departments to issue material from Government stocks to the approved Government Contractor for manufacture into uniforms and other articles of clothing for subordinate personnel. Audit examination of Police Store Conversion Vouchers kept for recording these trans- actions revealed a most unsatisfactory position in that issues of material over very considerable periods, to a firm which had held the Contract for a number of years, had not been fully accounted for. Further issues of cloth were made in bulk, whereas completed articles were being supplied in driblets over very extended periods. In numbers of instances part only of each order, which had been placed many months previously, had been completed at the date of audit, but no steps had apparently been made, either to insist on the early completion of the orders, or to obtain the return by the Contractor of the unused material. Certain of these orders remained incompletely executed for over two years. During this period many other similar orders were placed and further quantities of material to cover them were issued, with the result that at the date of audit material valued at no less than $2,554.67 had not been accounted for. After raising an Audit Query on this subject, material valued at $613.01 was subsequently recovered from the Contractors and articles accounting for the remaining material, viz., $1,941.66 were manufactured and supplied.
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