CO129-377 - Governor Sir Lugard - 1911 [5] — Page 361

Just II A copy of this deep

Juicetor Col. Andet

Iresume you will and as in the

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the Let's uport.

It also had with this

Perhaps you despatch at the same time

M. Collins

With reference to Sir F.Lugard's comments on

paragraph 17 of the Auditor's report, which dealt with

the method of accounting in the Account for 1909 for

the sum of $ 25,000 realised by the sale of the hulk

"Hygeia", there is little to add to the remarks con-

tained in the report of the Comptroller and Auditor

General for that year, in para: 3 of which the opinion

was expressed that the explanation given by the Govern- of the course which had been followed

ment was not satisfactory. In this despatch the Gover- nor states that he is notfaware of any regulation or principle of accounting which would support a different classification to that which was adopted. The reply to this is that a credit to an Expenditure head in

respect of Stores etc. sold is open to objection, on

principle, because it has the effect of increasing the

provision placed at the disposal of a Dept: for the ser- vices of a particular year without necessitating specific authority being obtained for the additional provision.

Such receipts and refunds only as arise in connection.

T

土

A

agree

No 215 d

BC

23.11.1

351

with the adjustment of errors should, broadly speaking, be recorded in the Accounts as Expenditure credits or as Revenue debits, as the case may be, and this view will be found to furnish the guiding principle underlying the opinions expressed from time to time on such questions as these by the Audit Department. The necessity of showing

as Revenue the amounts realised by the sale of stores, etc: has always been insisted upon by the Audit Dept:, and in my opinion this course should have been followed in this particular instance.

As the error of classification was not corrected in 1909 and no adjustment in a later account is possible, no useful action can now be taken in the matter.

In the next para: of the despatch allusion is made to a change of accounting methods in respect of certain other items, which are regarded as being governed by the same rule as that erroneously applied to the case already dealt with. I attach a copy of a letter to the Auditor

on this subject dated 23rd November last.

Para: 35 of Report.

The Governor states that steps

are being taken to open a Suspense Account for P.W.Dept: Stores and from later correspondence we have been given

}

to understand that this question is still under considera- tion at the Colonial Office. We should see the papers as soon as a decision has been reached.

Para: 37 of Report. The Auditor has been informed that a charge of this nature should not have been made unless supported by specific instances.

Sheil

Jand 2/6/12

i paper has been held over until the ranions fociti mentines done in his Auditor's report has been deall with. Dan vorry for his delay.

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