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The accounts have been regularly rendered and have been satisfactorily kept.
50. Mileage charges in respect of the 3 Engines purchased from an Advance made by this Government have been collected monthly by a deduction from the payment by this Government of the balance due to the Canton-Kowloon Railway on Joint and Through Traffic receipts.
51. The final division sheets of Through and Joint Sectional Traffic Receipts between the two Administrations have been audited to the 31st December 1933 and have been accepted by the two Administrations.
52. Ten surveys on the accounts of the Railway Stations and Stores were carried out throughout the year, and call for no special comment.
LOSSES OF MONEY AND STORES.
53. The embezzlement by a Shroff employed in the Police Department to which reference was made in paragraph 58 of last year's report was followed by arrest and conviction. The Secretary of State approved the writing off of a portion of the loss and ordered a further portion to be recovered from certain officers held to be responsible. There still remains $800, at present charged to an Advance Account, upon which the Secre- tary of State's decision has yet to be obtained.
54. The theft of a large quantity of explosives belonging to private firms but which were for reasons of public safety kept at the Government Gunpowder Depot has already been reported to you (Letter No. 32/29 of 26th March 1934).
Though the theft occurred during the year under review the financial effect will not be shown until the year 1934.
55. Periodical surveys of these privately owned stores have now been brought into the Audit Programme.
56. A third theft, on this occasion of Post Office cash and stamps, occurred during the year and after local enquiry and report the Secretary of State authorised the amount stolen $1,589.09 to be written off.
STORE ACCOUNTS.
57. As anticipated (Vide paragraph 59 of 1931 Report) the mere volume of the new Store Regulations approved by Government is proving a stumbling block for their complete adoption by the departments. Submitted in three sections, for
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(1) Allocated Stores, (2) Unallocated Stores, (3) Railway Stores, the last section has been definitely shelved and after consultation with the Treasurer and Auditor it was agreed that the Railway Store Rules should remain practically as they
were.
The two remaining sections have been printed and already forwarded to you.
58. The Government Analyst, whose store is comparatively small, reported that if the regulations were to be adopted in full it would be necessary to ask for a storekeeper to be ap- pointed. So far as this department is concerned there is no reason why the current system should be elaborated.
59. The Medical Departinent has also reported to the Government on the difficulty of adopting the new regulations and the matter is under consideration.
GENERAL.
60. Surprise surveys of cash and stores were made on various occasions throughout the year but call for no special
comment.
61. Three hundred and twenty-seven queries of a routine nature were raised during the year and have been satisfactorily settled.
62. There has been no material departure from the autho- rised Programme of Work for the year.
9th August, 1934.
P. L. COLLISSON, Auditor.
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