CO129-607-1 Enquiry into loss of public money 22-5-1948 - 26-10-1948 — Page 23

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(a) The District Office had no banking account.

(b) Revenue which had accumulated at the Un Long and Taipo offices

was collected and taken to the Head Office in Kowloon usually

not more than once a week.

(c) Money in the Kowloon Head office, irrespective of the amount,

was kept overnight in two cashboxes deposited in a safe, the

original key of which was kept by the District Officer, New

Territories, and the duplicate by Mr. Chung Yiu Kei. Either

officer could open the safe in the absence, and without the

knowledge, of the other.

FINDINGS.

We find that:-

(A)

(B)

(c)

On the amalgamation after the war of the two former

departments into the single District Office, New Territories, no

consideration appears to have been given either by the District

Officer or by the Accountant General to a corresponding reaganisation

of the accounting system of the department. We observe, however,

that an Audit check of the department's accounts on the 27th of Jarmary, 1947, apparently did not occasion any criticism of the

existing accounting system.

The department's account books have not been checked by

the Treasury since the reoccupation of the Colony.

After September 1947 up to the time of the audit

inspection of the 10th May, 1948, no check of the department's

accounts was carried out either by a senior officer of the department

or by Mr. Au-Yeung Man, who had been appointed to take charge of

these accounts.

(D)

Mr.

Au-Yeung Man failed in the discharge of his responsi-

bility that he omitted to report to the District Officer, New Territories or to the District Officer, South, Mr. Chung Tse huen's insubordination in refusing to allow him to inspect his books.

The responsibilities of Mr.

Au-Yeung Man as clerk in charge of accap