CO129-629-4 Commerce and Industry Department- supplies branch. Includes a statement of accounts for May 1946-March 1950-... 1-11-1951 - 31-1-1952 — Page 23

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LOWE. BINGHAM & MATTHEWS, HONG KONG

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against profits of Food Section

Rice.

Monthly transfers have been passed since

September, 1950, debiting "Rice Storage Suspense Ac-

count" and crediting "Food Suspense Account" with what

would have been normal monthly storage charges made by

commercial owners. This inter-branch transfer of funds

as a notional storage charge is not reflected in the

Trading and Profit and Loss Account of Food Section -

Rice. We are informed that this notional monthly trans-

fer will, in due course, liquidate the balance on "Rice

Storage Suspense Account."

The above methods of financing the original

capital outlay and subsequent maintenance and operating

costs, together with the monthly transfer of funds be-

tween Suspense Accounts were, we understand, approved by

the Secretary of State for the Colonies in his savingram

403 of 21st April, 1950.

SURPLUS - $21.670.467.44

In our Modified Report dated 18th January,

1951, on the Statement of Accounts prepared by us for

the period 1st May, 1946, to 31st March, 1950, of the

Department of Supplies and Distribution (now named De-

partment of Commerce and Industry), we stated, "it is

more than probable that amendments will arise as and

when further information becomes available."

As the Surplus at 31st March, 1950, was trans-

ferred to Treasury pending approval of appropriation by the Secretary of State for the Colonies, (approval since

granted) it has been necessary to show adjustments in

respect of prior years in a separate section of the

Surplus Account in order to avoid distortion of this

year's operating figures.