t
would make it possible:-
کی
82
(1) To maintain Standard Stock for say 9 months supply based on the experience of the last ten years or for such lesser period as would give a more up to date average.
(2) To lessen the necessity for providing to any very great extent for unforeseen works, in that it becomes possible to reduce the time between the date of the order and the delivery of the stores. We recommend this proposal therefore as the solution of
the question and the fixing of Standard Stock at 875,000.
It now remains to snow what is to be done with the $303,000 worth of stock at which the Store Account now stands. Mr. Wood has explained that this collection is the accumulation of years and that in many cases the prices are merely fictitious having been priced a good many years ago by the Naval Yard Authorities without regard to any book values. We have visited the Stores at Wanchai and the Gas Works.
It is proposed to sell $30,000 worth of Stores and in this we concur, and we do not agree with the recommendation that any should be kept because the types we inspected are obsolete and presuma -bly have been scrapped in past years for some good reason. The materials have deteriorated considerably and even if put into works would require renewal at an early date.
As regards the balance we recommend that:-
(a) New Stores should be duly written down on a fixed basis of
depreciation say 5% for every year they have been in the Colony. This is the practice in India with Stores returned
from construction.
(b) A Head should be opened in the P. W. Estimates and Account
as Loss on Stores. This account should be debited with such
depreciations, and credited with any sales of stores not on
charge.
(c) Transfers should be made at once to the newly created
Standard Stock as advised above to the extent of the sanc-
-tioned quantity, or the Standard Stock may be temporarily
increased to cover the amount of such stuff as is transfer-
No comments yet.
Private notes are available after approval.