CO129-489 - Governor Sir Stubbs & Sir Clementi - 1925 [8-12] — Page 337

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and expenditure, and that therefore the information which has been recorded in them is incapable of being corrected by means of adjustments which, in effect, do nothing more than modify the facts relating to the transactions in the current year. Having regard to this objection, and also

for the reason that it is calculated to interefere with

the complete measure of financial control which is pro- vided for in the Colonial Regulations, I have come to the conclusion that I am no longer justified in supporting the maintenance of the procedure based on the existing rulings, and that, on the contrary, it is advisable

that, as occasion arises, I should indicate the procedure

which, in my opinion, it would be more correct to follow,

4. Briefly stated, therefore, my view is that

deductions from revenue and expenditure such as are

referred to in Colonial Regulation 343 should be limited

to any inaccuracies which have occurred in the account

of the current year and that any similar adjustments that

may be necessary owing to inaccuracies which have occurred

in the accounts of previous years should be effected by

crediting or debiting the amounts to revenue or expenditure,

as the case may be, under the head for "Miscellaneous",

5 From the foregoing you will gather that I concur

in your view that the repayments of revenue referred to in

your letter should properly have been charged to expendi-

ture, but, in view of the existing rulings on the point,

I am prepared to acquiesce in the course which has been

adopted in this particular case, I would however wish it

to be understood that the procedure which I have indicated

should be adopted in future.

I have, etc.,

(Signed) A.E.STEPHENSON.