CO129-577-4 Report to the Director of Colonial Audit- 1938 24-10-1939 - 7-3-1940 — Page 14

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latter advantage is often independent of the article in

question being stocked by the Stores Department it is not

proposed to exclude all articles not so stocked from that

practice. With a view however to avoiding reference in

cases where the Stores Department cannot assist a change

in the rule is under consideration.

Paragraph 129. The use of stock cards, although a great

convenience and one which has not led to embarrassment, has

been discontinued and issues and receipts are now posted

direct to the ledger.

Paragraphs 130 to 134. The practice in question, which

has obtained for many years, has now been altered to comply

with the Auditor's proposals by transferring to revenue all

credits to the Stores Depreciation sub-head of Expenditure

for 1939 in respect of goods originally purchased from lapsed

votes and since returned to store for taking on charge as

unallocated stores. In future no charges will be debited

to this sub-head of expenditure without specific approval

of Government obtained in advance.

Paragraph 141. The matter has been carefully investigated

by the Financial Secretary and by the Registrar of Companies,

Hong Kong, who advise that the grant of both reliefs to a single company is not improper, the refund of capital fees being properly made to private companies notwithstanding

that the further relief under section 352(5) of the

Companies Ordinance applies to private companies only. regret that in the circumstances I am not prepared to accept

the Auditor's suggestion.

I have the honour to be,

I

Sir,

Your most obedient, humble servant,

b

hot. horthants

Governor.