Sessional_Paper_1893 — Page 548

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SIR,

(Mr. N. G. Mitchell-Innes to Colonial Secretary.)

TREASURY, 22nd April, 1893.

With reference to the Report of the Treasury Commission I have the honour to enclose a statement to be laid before His Excellency the Governor. I shall be obliged by your informing him that I should esteem it a favour if he would kindly forward it to the Secretary of State when sending home the Report.

I have the honour to be,

Sir,

Your obedient servant,

The Honourable G. T. M. O'BRIEN, C.M.G.,

Colonial Secretary,

N. G. MITCHELL-INNES,

Treasurer.

He..

&C.

&C.

Statement of the Treasurer (N. G. Mitchell-Innes) with reference to the Report of the Treasury Commission.

22nd April, 1893.

On taking over the Treasury at the beginning of 1891, I found the Depart- ment in a state of perplexity as to its duties. In former years the Treasury had collected revenue and disbursed expenditure, looking to the Audit Office for the detection of errors on both sides. In charge of the various collections were trusted clerks of from 24 to 35 years' service to whom any change in the recognised practice was, naturally, distasteful, and to whom therefore it was in vain for the new Treasurer to look for assistance in introducing new methods.

2. Much difficulty was experienced by me in my endeavours to ascertain to what extent it was intended that the existing system should be modified.

3. In advocating the introduction of a home Audit the Secretary of State had drawn attention to the fact that the Colony would thereby be relieved of all audit work and would have the advantage of having in its midst a trained Auditor devoting his entire time to the checking of receipts.

4. At the same time the new Financial Instructions appeared to lay it down as an axiom that the Treasurer was to place no reliance on the Auditor, but to maintain his own checks and examination as though no such officer existed.

5. In my letter No. 12 of 22nd March, 1892, I clearly pointed out the difficulty in which I found myself. I stated that without an increased Staff it was impossible for me to maintain an efficient check on revenue, and I explained that the practice existing in the Treasury was to check expenditure and conduct occasional surprise visits to other departments, but to look to the Local Auditor to check revenue.

6. This explanation was, I believe, sent to the Secretary of State, as I was, while on leave, questioned on the subject. The reply I then gave was that, in view of the work actually being performed by the Local Auditor, I considered the practice I had described as existing as sufficient for practical purposes. As I have heard nothing further on the subject, I have understood that my views were agreed

iu.

7. I am still prepared to maintain that they were correct, the recent defalca tions having been rendered practicable only by the examination of counterfoils by the Auditor having been a "test" instead of a perfect one, and their continuance having been permitted by the failure of successive Treasurers to promptly submit the Crown Rent Rolls for audit.