CO129-489 - Governor Sir Stubbs & Sir Clementi - 1925 [8-12] — Page 336

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Director of Colonial Audit to the Auditor, Fili.

No.216/1357.

Sir.

8th November, 1918.

2

With reference to your letter, No.1006/191/18, of

the 10th August I have the honour to inform you that

I have recently had under my consideration the question

of the accounting procedure which should be followed

in connection with the adjustmen of over-credits to

revenue and over-debits to expenditure.

2. The existing rulings on this question are to

the effect that adjustments of the nature referred to

should be effected in the account of the current year

by deducting the amounts involved from the respective

totals of the sub-heads affected, regardless of the

dates when the original transactions occurred, but

that, in cases where the particular sub-head against

which the over-credit or over-debit was originally

recorded has ceased to exist or where the total amount

recorded in the current account against the sub-head

affected is insufficient to bear the adjustment,

amounts, or so much of them as may be necessary, should

be carried to the "Miscellaneous" head of revenue or

expenditure, as the case may be.

the

3. I am, however, of opinion that the procedure

above indicated is open to the important objection that

it fails to take due cognisance of the fact that the

accounts of the previous years have been automatically

and definitely closed, so far as they relate to revenue

and