CO129-377 - Governor Sir Lugard - 1911 [5] — Page 365

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"the expenditure credits (including recoveries of overpayments)

will be deducted from the expenditure" and has been the

practice in this Colony since the adoption of the Financial

Instructions in 1901, under No. 152 of those Instructions. The

amount realized by the sale sufficiently indicates that the

"Hygeia" was not in any sense unserviceable. I am not aware of

any regulation or of any principle of accounting which would

support a different classification.

The method of accounting which I have

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10.

caused to be adopted in respect or the other items mentioned by

the Local Auditor is based on the same Regulation and was

suggested by the decision regarding the treatment of refunds of

revenue conveyed in your Despatch No. 116 of 29th. April last.

1910

To quote mutatis mutandis the words in the letter from the

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Exchequer and Audit Department No. 1094 of 16th. September, 1909

enclosed in the above quoted Despatch "the ordinary method of

accounting for receipts of this nature is to deduct them from

the previously recorded payments and thus to show, as Revenue

or Expenditure, only the net amount received or expended".

Paragraph 23. The contravention of the Colonial

Regulations quoted is inevitable since the actual amount of

revenue upon which Military Contribution is calculated is not

SAKER, DRAMA BELU

known