Sessional_Paper_1938 — Page 188

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14. My decision to exclude unrealized appreciation and depreciation of invest- ments from the Revenue and Expenditure Account has been reached after considera- tion of the questions to which reference was made in paragraph 6 of the circular des- patch from Sir Philip Cunliffe-Lister (now Viscount Swinton) of 7th March, 1935, and, while satisfied as to the desirability of continuing an annual valuation of investments in order that the exact financial position of the Colony may be ascertained, I have recognized that objection may be felt to including in the annual budget an item which does not represent an actual cash transaction and which is not susceptible of legislative control.

Profit or loss realized on sales of investments will continue to be included in the Revenue and Expenditure Account, and the procedure set forth in paragraph 3 of my circular (2) despatch of 27th August last, will continue to be applied to the transfers to or from the Crown Agents of the interest and the appreciation or depreciation of Stock Transfer Stamp Duty Funds, and to any similar transactions where the profit or loss on investments is actually received or paid out in cash.

15. The purpose of the TABULAR SUMMARY OF SPECIAL FUNDS, ETC. (Statement A) is to segregate the transactions and balances of funds in the hands of the Treasurer which, while appearing in the Annual Abstract Account and the Statement of Assets and Liabilities, are not part of the public funds at the disposal of the Legislature.

Where a deposit is made in the form of an investment, or it is the duty of the Treasurer to invest the moneys deposited and credit to the special fund the interest received, any appreciation or depreciation of the investments will be shown in this summary and not in the General Revenue Balance Account. The assets of which the balance of cash fund account consists will be set out as investments and sums due to or from the Treasurer. The difference between the totals of these latter sums will show the amount of cash in the Treasurer's hands which does not form part of the Colony's available surplus, and will be carried to Statement B.

A model form of Statement A is appended. Unspent loan moneys, and balances of advances from the Colonial Development Fund or of other grants or loans from His Majesty's Exchequer funds, should be included in this statement, but, in the absence of special arrangements, General Reserve Funds should appear in Statement B.

16. THE STATEMENT OF BALANCES (EXCLUDING SPECIAL FUNDS, ETC.) (Statement B) will include all the items in the Assets and Liabilities Statement except the balances and investments of the special funds, etc., included in Statement A, and the balance of these funds in the hands of the Treasurer appearing in that statement will be deducted from the Colony's general cash balances and investments. This statement is designed to show clearly to what extent the Colony's surplus balances and temporary deposits are required for financing its current financial administration and to what extent cash is immediately available to supplement revenue. A model form is appended.

17. THE STATEMENT OF OUTSTANDING LOANS (Statement C) will record the position of all loans repayable to the Colony, except the temporary advances and imprests which continue to be provided out of surplus balances, whether the loan has been made out of voted moneys in accordance with paragraphs 4-6 above, or out of Colonial Develop- ment Fund or other Exchequer loans or grants, or out of the proceeds of loan issues.

Particulars will be given of the source and date of the loan, the ordinance or other authority under which it was made, the rate of interest and terms of repayment. the amount repaid or sinking fund accumulated, and the amount outstanding at the end of the financial year. In the case of a number of small loans made from a common source, e.g., loans to cultivators out of a Hurricane Loan, aggregate figures of the amounts lent, repaid, and outstanding will suffice.

18. This statement is the counterpart of the statement of the Colony's public debt at present rendered, and I take this opportunity to request you to arrange for the in- clusion in the latter statement of all outstanding debts due to His Majesty's Exchequer in repayment of Colonial Development Fund and other loans, if this is not already the practice in the territory under your administration.