CO129-626-9 Wholesale vegetable marketing scheme 1-2-1951 - 30-11-1951 — Page 63

3490/3.

REPORT of the DIRECTOR GENERAL OF COLONIAL AUDIT on

the COLONIAL DEVELOPMENT AND WELFARE STATEMENTS OF

HONG KONG for the year ended 31ST. MARCH 1949.

SCHEME D. 994.

The Director of Audit states that this Scheme

forms part of the Government Wholesale Vegetable and

Marketing Organisation, the accounts of which are

audited by a local firm of accountants, and he reports

as follows:-

" (i) The auditors of the accounts of the

Scheme report that they are unable to supply a certificate to the effect that the payments of $18,963.20, $18,963.20 and $856.00 made during the year from Colonial Development and Welfare Funds, have been made for services properly chargeable to the Colonial Development and Welfare Grants and Loan, and not to the revenues of the Vegetable Marketing Scheme, since they were only requested to conduct a normal commercial audit and no budgetary system of accounts was maintained.

(ii) In their report on the accounts of the Government Wholesale Vegetable Market for the year ended the 31st March 1949, the auditors make the following comment:-

The Colonial Development and Welfare Fund.

This grant was received subsequent to the 31st March 1949, but was based on the estimated operational cost of the New Territories Depots scheme up to that date. It is conditional on the profits of the Vegetable Marketing Organisation being ploughed back into the Organisation and not diverted to General Government Revenues. It is understood part of this sum is to be regarded as a free grant and part as an interest-free loan repayable in 1954, but we have been informed that the final details have not been settled and, pending clarification of the position, the full amount is shown as a liability on the Balance Sheet.

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2. The Director of Audit adds that he has

represented to the Accountant General that detailed

estimates.