CO129-376 - Governor Sir Lugard - 1911 [3-4] — Page 303

OP Y.

6. 21.

Enclosure 1.

C

Sir,

C O

14037

291

Leo

Audit Office,

Hongkong, 18th. March, 1911.

I have the honour to request that you will

forward this letter to His Excellency the Governor for his informa-

-tion.

2.

On the 24th. February, the Hon. Col. Treasurer

rendered his December A/c's for audit, from which date the accounts

have been under examination in the office of this Department. On the 17th. of March the Hon. Col. Treasurer requested me to return to him the Receipt and Payment Abstracts for December, which I

reluctantly did.

3.

Today, 18.3.11, I received a memorandum

initialled by the Hon. Col. Treasurer requesting me to note certain alterations he has made in the Receipt and Payment,

Abstract. This procedure in altering the accounts after their

having been rendered for audit is most irregular, and an explana-

-tion should be given by the Hon. Colonial Treasurer.

4.

I would point out that once the accounts are

sent to this Department no further action by the Hon. Col.

Treasurer can be taken until the examination by the Audit Depart-

-ment is completed. If the Monthly Statement of Accounts had been

rendered to the Director of Colonial Audit by this Department

and the Hon. Col. Treasurer had then altered his accounts the

certified statement rendered to the Director of Colonial Audit

would not have agreed with the Books of Account of the Treasury. Similarly it would have been impossible for the Hon. Col. Treasur- -er to have adopted this procedure when the accounts were audited

by the Comptroller and Auditor General.

5.

The alterations made by the Treasurer are

these in the December Receipt Abstract under Suspense Railway Construction, Reimbursements Due appeared a credit of £139,050.45

this amount has been altered to 85,173.85, and the balance