CO129-357 - Governor Sir Lugard - 1909 [7-9] — Page 257

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Minute by the Colonial Treasurer.

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C.O 9715 282 Race 3 SEP

When the payment of the balance of the Hary

Contribution for the year 1907 was made in March, 1908, the

amount was based on a total of Revenue which included the sum

of $28,448.34 being 'Interest' on Government Balances during

the year.

At the time of payment it did not occur to the

Treasury that the proper method of dealing with 'Interest'

amounts, whether Revenue or Expenditure, would be to treat them

at the end of the year as virtually one account and that there-

-fore only the balance of such account should be put down to

Revenue er Expenditure according to the nature of such

balance.

An adjustment on this line was, however, sub-

sequently made with the result that the Revenue item 'Interest'

disappeared and the Expenditure "Interest on Advances for

Railway Construction" was reduced by the above-mentioned

amount.

It appears to me that any other method of

accounting would be anomalous since it would show a large

expenditure on 'Interest' and at the same time a smaller amount

at credit of Interest under Revenue on which latter sum the

Military Authorities would levy their contribution.

(Sa) C Mel Masser,

a.w. It

31st. July,

1909.