Sessional_Paper_1893 — Page 582

( 18 )

SECOND MEETING.

March 2nd, 1893, at 11.30 in the forenoon.

Present: Mr. E. J. ACKROYD, Chairman.

Mr. J. THURBURN.

Mr. S. G. BIRD.

Mr. F. J. BADELEY, Secretary.

Mr. Hilgrove C. Nicolle, Government Auditor, called.

28217

The Chairman.-What is your name?

Witness.-Hilgrove C. Nicolle.

Q-When were you appointed local auditor?

A.—I was appointed from January 22nd, and I arrived in Hongkong on April 14th, 1890.

-When did you begin examining the Treasurer's accounts and books?

A.--Very soon after I came here. A few days after arriving I went to the Treasury and started my examination.

Q. What books and papers did you require for your examination? Take, for instance, the Crown Rents.

A.-The books I required were counterfoil receipt books, the daily receipt book kept by Mr. Alves, the Rent Roll and this cash book and journal and ledger (all produced) and I traced the items into the cash book and ledger to see that the amounts were duly paid into the Government.

Q.-There is a ledger kept for the Crown Rent?

A.-There is a separate place in the ledger for Crown Rent.

Q-And what totals are entered in that?

A.-The monthly totals.

Q. What system did you follow in checking and examining this Rent Roll ? A.-I took the counterfoils and I checked them with what is known as Alves' daily receipt book. I checked the daily totals from that book into the cash book and I checked a certain number, a considerable number, of the counterfoils with this Rent Roll. I also checked the Rent Roll sent up by the Land Office with the Treasury Rent Roll.

Mr. Thurburn.--You did not go through the counterfoils?

A. No, not all.

The Chairman.—Not every counterfoil ?

A. No, not with the Rent Roll.

Mr. Bird.-If you had checked the counterfoils you would have found all this out before?

A.--Well, we have been through the counterfoils in the Office and, as far as I know, there are only two cases in July where there is a difference and there is one case in February last, and these are the only specific cases where we should have found it out if we had checked the counterfoils with this book.