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95. On this basis he argued that, in the case of heads of departments who receive or expend public moneys, he is not required to exercise the strict supervision or to take the precautions prescribed by Colonial Regulation 218 (v), or to make the surprise inspec- tions required by Colonial Regulation 219.
96. While there may be some ambiguity in certain of the Regulations, we find our- selves unable to agree with the Treasurer's contentions.
Heads of Departments who receive and expend public moneys are required to render to the Treasurer accounts of all transactions, and in that sense, are accountants.
In their transactions they act in a subordinate, secondary or subsidiary capacity, inasmuch as their transactions are carried out under the instructions of the Treasurer as Chief Accounting Officer of the Government.
Where they receive public moneys and do not pay them to the Treasurer direct, they pay them into the account of the Government; and send the bank's paying-in slips to the Treasurer as evidence of payment and in due course render Collector's Accounts.
Where they expend public moneys for any purpose they account for their expendi- ture to the Treasurer, and submit to him the vouchers which become vouchers to the Treasurer's Accounts.
All receipts and disbursements are recorded in the departmental books but are sub- sequently shown in the Treasurer's Accounts, for the departmental accounts do not form part of the Colony's account.
Colonial Regulation 278 expressly lays down that all disbursements of public money will be made by the Treasurer either personally or by officers acting, by instruction, as his sub-accountants; and if heads of departments are not sub-accountants, the numerous disbursements which they make appear to be contrary to this Regulation.
If heads of departments are not sub-accountants, it appears to be contrary to Co- lonial Regulation 279 for them to have bank accounts and to sign cheques. If they are not sub-accountants, there appears to be no warrant for their having at their disposal, for disbursement by them on the public service, any moneys other than such as may be received by way of imprest (Colonial Regulation 319).
We are of the opinion that heads of departments who receive and expend public moneys are sub-accountants, and this view appears to have been in the mind of the draughtsman of General Orders 251 (2) and 252 when he used the phraseology "every Head of a Department or other sub-accountant”.
97. Mr. Messer has not, so far as we can judge, systematically exercised strict supervision over the heads of departments, and we find no evidence of surprise inspections or of any maintained effort to see that the proper system of account was established and was being satisfactorily operated in all departments, and that efficient checks against fraud were being maintained.
In some half dozen cases the Cashier or other officer deputed by the Treasurer has visited departments for the express purpose of checking the cash and examining the books (Police Magistracy, Hong Kong, 1923. Police Magistracy, Kowloon, 1925; Government Civil Hospital and Kowloon Hospital, 1927, Secretariat for Chinese Affairs, 1927, Prison Department, 1927); in other cases the Cashier has visited certain departments in order to investigate specific matters which have arisen.
Mr. Messer's attitude with regard to the matter is that while it was not his duty to exercise strict supervision and make surprise inspections he has nevertheless done what he could.
98. Interpreting the term "sub-accountant" in the sense in which he has, Mr. Messer has not considered applicable to heads of departments the provisions of Colonial Regulations 338 and 339 requiring sub-accountants to send their cash books, or tran- scripts or summaries thereof, to the Treasury monthly for checking.
He maintains that the responsibility for checking the accounts of every department lies on the Audit Department, and not on the Treasury; but he states that the Treasurer should give assistance though this is "voluntary assistance".
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