LOWE, BINGHAM & MATTHEWS, HONG KONG
the accuracy of the accounts now presented.
However, in
view of the importance of the matter and the desirability
that a similar state of affairs should not be allowed to
recur, we would observe that in our opinion the need to
provide an adequate accounting system and employ efficient
staff if need be to meet an emergency
-
<<
at rates in ex-
cess of normal Government salaries, was underestimated.
There was also an absence of liaison, recently remedied,
with the Treasury, as the result of which the reconcilia-
tion of the Department's accounts with the Treasury nec-
essitated lengthy investigations. It is important that
this state of affairs should not be permitted to recur.
No clearly recorded policy was laid down for
recording the disposal of B.M.A. Stocks, collection of
B.M.A. Debtors or payment of B.M.A. Creditors; the details
of these items were obtained only after extensive research
by our staff.
As a result of these deficiencies and inefficien-
cies in staff and system, the preparation of these accounts
has been unduly arduous and protracted.
OPERATING ACCOUNTS
INTEREST
The Department's purchases were financed by the
Treasury from surplus balances and the suns advanced were
charged to the Suspense Accounts. These sums were offset
by payments to the Treasury as goods were sold. As sales
generally were in excess of costs and a substantial sur-
plus accrued in the Department's accounts by the end of
the period of these accounts, payments to the Treasury
exceeded the advances to the Department and there was a
net credit balance on the Suspense Accounts before trans-
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