CO129-489 - Governor Sir Stubbs & Sir Clementi - 1925 [8-12] — Page 334

No. 68.

COFY

Secretary of State to Governor of Hongkong.

1

26th February, 1920.

332

sir.

I have the honour to acknowledge the receipt of

Mr.Severn's despatch No.161 of the 19th May, 1919,

referring for my decision certain questions which

have arisen in connection with the system of account-

ing in the Public Works Department.

2. After consulting the Director of Colonial

Audit on the point at issue I find myself unable to

concur in the view of the Director of Public Works,

which seems to be based upon the erroneous assumption

that the capital cost of the Water Works of the Colony

must necessarily be exhibited in the Treasury accounts.

Having regard to the exigencies of Government account-

ing such a record as he appears to contemplate cannot

be secured, and if, as I am advised should be the case

in connection with such an undertaking as that referred

to, it is desired that a capital account should be

maintained, this record should be compiled separately

from, but be capable of reconciliation with, the

general account of the Colony. It would seem therefore

that the view taken by the Treasurer and the Auditor

is the correct one with the exception that, instead of

carrying the value of the returned stores to the credit

of the "Stores Depreciation" Vote, it would be preferable

to credit all such amounts to a special subhead under

the