CO129-377 - Governor Sir Lugard - 1911 [5] — Page 362

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In any further correspondence on this subject, the above number should be quoted,

and

the communication should be addressed to

"Director of Colonial Audit.”

Sir,

COLONIAL AUDIT DEPARTMENT,

41, CHARING Cross,

LONDON, S.W.

352

23rd vesker 1911

(Enclosure)

I have the honour to acknowledge the receipt of your letter, No: 38/87, of the 17th ultimo enclosing a copy of correspondence on the subject of the method of accounting for certain items of revenue.

2. In your letter to the Colonial Secretary, Mo: 87, of the 10th October I observe that you have suggested that the procedure whereby certain re-imbursements-in-aid and other receipts were dealt with as credits to Expenditure Heads should be adopted with regard to fees received by the Medical and Education Departments. I would however remind you that, in commenting upon this procedure, in para: 17 of your Annual Report on the accounts of the Colony for 1910, you placed on record the opinion that from an accounting point of view the course which had been adopted was irregular and that it was not in accordance with the Colonial Regulations. With this opinion I entirely concur and I consider that, as Auditor, you should have refrained from making the suggestion above referred.to.

3. In considering questions dealing with the correct method of accounting it is an Auditor's duty to be guided strictly by the principles which are laid down in the approved Instructions and Regulations, and the fact that adherence to those principles may be considered to adversely affect certain of the financial arrangements of the Colony is primarily a matter for the consideration. of the Government; and any change that may be deemed to be desirable should preferably take the form of an amendment of such arrangements rather than the

The Auditor,

W. & 9, Ltd.---500–3-30, HONG KONG.