CO129-519-4 Adjustment of exchange account- payment of military contribution on profit on exchange 10-9-1929 - 10-6-1931 — Page 28

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As a result of observations made by the

Director of Colonial Audit on the question of accounting for

the remaining portion of the total nett dollar "profit" for

the years 1920-1926, i.e. that due to the lower exchange

value of the dollar, the Treasury exchange transactions for

the years 1920-1926 were reviewed item by item and the exact

figure was calculated by the Audit Department and accepted

by the Treasury as $2,307,700.60. The Treasury Accounts

were accordingly re-adjusted and this sum was carried in the

1926 account to Revenue, the resultant 20% Military

Contribution assessments thereon, namely $461,540.13, being

placed provisionally in a Suspense Account Military

Contribution. It escaped observation at the time that the

Auditor's calculation, based on assessing each item at the

actual rate of exchange current when realization took place,

would not agree with the Adjustment of Exchange Account in

the Treasury Ledger, in which each year's total transactions

were aggregated and converted into dollars at the final

(December) rate of exchange. The resulting discrepancy which

amounted to $367,715.66 over the period was eventually written back to the 1928 Revenue and Expenditure Account from

the "Adjustment of Exchange Account", which is now in strict

accordance with the principles laid down in Mr. Amery's

despatch of November 26th, 1925. The amount of $461,540.15

carried to Military Contribution Suspense Account accordingly

remains in, and constitutes the bulk of, the "Suspense

Account Military Contribution", which now stands at

$504,104.70, having received further accretions of $50,916.85

(1927) and $11,647.72 (1928) in respect of normal routine

realizations carried out by the Crown Agents purely on their

own initiative and without instructions from Hong Kong.

what happened

to mid.conf.

?

for 47267/25

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