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 39

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LOWE, BINGHAM & MATTHEWS, HONG KONG

3 -

DISTRIBUTION CENTRE,

(Army Rations)

Cr. $18,319.36

Since it was believed that this item had arisen

in respect of the sale of Army Rations, and as it was con-

firmed that no Civil Administration stocks were involved,

the balance was dealt with in the 1949/50 Accounts as a

realisation of B.M.A. stocks.

In the Consolidated Balance Sheet (Schedule No.

I) prepared for the Department as a whole, the three last

mentioned sections have consequently been omitted; the

transactions which were recorded through their respective

Treasury Suspense Accounts were relatively small.

ACCOUNTING SYSTEM OF THE DEPARTMENT

The records generally were in an unsatisfactory

and incomplete state. It was explained that this was due

to the difficulties arising from the receipt of the large

quantities of stores without documents and an inability

to employ sufficient and suitable staff.

In accordance with General Orders of Government

the Director of Audit endeavoured to conduct a partial

audit of the books but this was later abandoned.

The Director of Audit has informed us that he

reported in accordance with General Order No. 393 and he

ultimately found it necessary to consolidate his criticisms

in his report under date 15th July, 1948, to the Director

General of Colonial Audit, which report has already been

published and considered by the Secretary of State, and

should be read in conjunction with our observations on the

appended accounts. In these circumstances we have not

felt that we were required to call attention to short-

comings already referred to by the Director of Audit, but

have confined ourselves mainly to observations affecting