CO129-374 - Public Offices & Others - 1910 — Page 22

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In these circumstances I am to suggest that the Hong Kong

30th Expenditure Accounts up to June 1910 be sent home for examination and that the local audit of expenditure should be applied to the Accounts of July 1910 and subsequent months, arrangements being made to ensure the arrival in Hong Kong of the additional Assist- ant Auditor recommended by the Retrenchment Committee not later than 1st September.

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5.

In connexion with the adoption of the system of local audit of Expenditure in Hong Kong, I am to refer to the Secretary of State's despatch to Sir F.Lugard No:272 of 12th November in the 4th paragraph of which Lord Crewe suggests that, if Mr:Phe-

lips is deprived of the allowance of £100 per annum from Naval

Funds as a direct result of the increased work imposed upon him by the Colonial Government he might be granted a non-pensionable allowance of £50 per annum.

6. With reference to this suggestion, I am to advert to

paragraph 4 of the letter from this Department No:1079 of the 11th 3 September, in which the Comptroller and Auditor General put for-

ward his reasons for considering that Mr:Phelips should not suffer

any loss in his emolumente, and I am to state that the Comptroller

and Auditor General is still of opinion that as the work which

will be imposed upon Mr:Phelips in connexion with the local ex-

amination of the Expenditure Accounts will be fully equal to, if

not greater than that of which he would be relieved in connexion

with the Naval Accounts it would not be equitable to reduce the

remuneration which he now receives, although the rate of pay sug-

of the post. gested would appear suitable for future holders if such a reduc-

tion had been suggested at an earlier period while present ar- rangements were in force, the Comptroller and Auditor General would not have been prepared to consent to the withdrawal from the Local Auditor of the audit of the Dockyard Accounts.

7.