CO129-619-4 Department of Supplies- Trade and Industry- organization and finance 19-3-1949 - 31-3-1949 — Page 56

Pago 17.

6:

it was observed that a Suspenso Account had been opened to record expenditure incurred in the distribution of UNRRA relief clothing, which was apparently undertaken by the Supplies, Trade & Industries Department.

It appears

from subsequent correspondence that the Accountant General authorised this Suspense account in the first instance but subsequently directed that the expenditure should be met from Head 19, Medical Department, B. Relief Section, sub-head 6 "Relief of Destitute Persons" (1947-48 Estimtes). Up to the 31st of December, 1947, this expenditure had not, however, been cleared from the Suspense Account and the matter is being kept in view.

68.

(iii) Korean Consi mments

It has recently come under the notice of this Department that a Suspense account called Korean Consignments, which was apparently approved by the Accountant General, was opened in August 1947 to which certain expenditure has been charged, apparently on the authority of the Director, in connection with the import of ginseng from Korea. No details of any arrangements made have been advised to this Department but it appears from preliminary enquiries, that the expenditure results from a proposal that the Hong Kong Government should finance trade between liong Kong and Korca, which was subsequently abandoned. I have asked the Director to supply full information of the arrangements made and to inform me of the authority under which this expenditure was incurred and charged to Suspense.

(iv) Distribution Centre Army Rations

The

69.

During the period of the Military Administration, this Section was set up to handle the distribution on repayment, or the free distribution to Goverment officials and employcus of essential services entitled to frec rations, of army rations provided by the Royal Army Service Corps. Section closed down on the 15th May, 1946, after the handover to Civil Government, but a Suspense account was opened in the Accountant General's accounts to which receipts in respect of rations issued on repayment were credited.

70.

An attempt was made to nudit accounts of this Section for the period of the British Military Administration and up to the 15th May, 1946, but this examination had to be abandoned owing to the unsatisfactory and incomplete state of the accounts. The Financial Secretary and Accountant General were notified to this effect. Accountant General called for the Director's comments on the state of the

In July, 1946, the accounts but it is not known what action, if any, was taken in the matter. 71.

No expenditure has been charged to the Suspense account and m revenue has been credited since Janaury, 1947. receipts should accrue to revenue in accordance with the terms of the

It appears that the agreement for the handover from the British Military Administration to Civil Government and the matter has been taken up with the Accountant General.

(v) Accounting Section Suspense Account

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In Documber, 1946, a Suspense Account was opened, apparently with the approval of the Accountant General, to which certain payments, e.g. payments made by the Crown Agents, could be charged en bloc in the first instance, subsequent transfers being mado from this Account to the Suspense Account for the appropriate Section or activity. The Accounting Section Suspense Account corresponded to the Head Office Account kept in the departmental ledgers; the accounts of all Sections being centralized in the so-called "Head Office accounts" kept by the Accounts Section. The Accountant General subsequently instructed that this account