CO129-605-1 Annual Accounts- 1946-7 9-9-1948 - 14-3-1949 — Page 34

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(c) The balances of the Assets and Liabilities existing at the

25th of December, 1941, which it was decided to incorporate in the accounts for 1946/47, were brought to account as receipts and payments for the month of March, 1947, and not as opening balances on the 1st May, 1946. (See paragraph 76 of this report).

5. With reference to paragraph 8 of the report of the Director of Colonial Audit on the accounts of Hong Kong for the period ended 30th April, 1946, the balances on the Investment Account and the Fund Account for the Hong Kong Exchange Fund, which are reflected in the Hong Kong London Accounts Office Balance Sheet at 30th April, 1946, were not incorporated in the Accountant General's accounts on 1st May, 1946, as separate accounts are maintained by the Accountant to the Hong Kong Exchange Fund in Hong Kong. (See paragraph 154 of this report).

AUDIT OF THE BRITISH MILITARY ADMINISTRATION ACCOUNTS.

6. The accounts relating to the period September, 1945, to 30th April, 1946, were audited locally by members of the Colonial Audit Department who had been seconded for service with the British Military Administration. A report on the audit of these accounts, together with certified statements, has been supplied to Government and a copy sent to the Director General of Colonial Audit for his information.

THE MANNER IN WHICH THE ACCOUNTS HAVE BEEN KEPT AND RENDERED

7. The Annual Abstract Account for the year 1946/47 and the Statement of Assets and Liabilities as at the 31st March, 1947, were signed by the Accountant General on the 10th February, 1948, and were received for audit on the 27th February, 1948. The last of the Annual Statements for the year 1946/47 was received for audit on the 28th June, 1948.

8. Taking into consideration all adverse factors the accounts of the Colony have been as well kept and rendered as could reasonably be expected. Considerable delay occurred in the closing of the accounts of the British Military Administration owing to many compli- cations that arose which called for decisions on important financial questions. After considerable periods of waiting, settlement of most of the major problems has been effected, but a number of matters still have not yet reached finality. This, in turn, for a time, prevented the Accountant General from closing his accounts monthly and preparing and publishing, in the Official Gazette, the monthly statements of the accounts of the Colony as required by Colonial Regulation 374. The publication of monthly financial statements was, however, resumed at the end of October, 1947, when those relating to the month of December, 1946, and other financial statements, were published in the Official Gazette.

9. The approved test check of the accounts of the Water works Section of the Public Works Department revealed numerous errors which resulted in both undercollections and overcharges in the Consumers Accounts. These errors were brought to the notice of the Accountant General and the Accountant of the Water Works Section with a view to their being adjusted in subsequent accounts rendered. The reasons given for these discrepancies were that the clerical staff was inexperienced and that more than 70% of the accounts had to be averaged owing to the shortage of meters. The latest audit examinations of this department, however, indicate a continuous improvement in the position.