THE CITY COUNCIL'S BALANCE-SHEET.
TO THK EDITOR OF " THE FBESS." j Sir, —As your report of the discussion lon tho City Council's tnbncc-ehect, whilo containing the City Treasurer's written explanation as read by the chairman of tho Finance Committee, fails to convey my objections, I crave your permission to again refer to the matter. Shortly, my objections were: —That tho balance-sheet was not made out as required by law. and that tho Auditor having been inconsistent in hie requirements should bo asked for explanations. I therefore moved that the balance-sheet should be returned to him, with a request that lie-Avould cause it to be made out to meet the requirements of Irw. In supi>ort of my motion. I showed that in a previous balancesheet and correspondence he had classified expenditure on municipal concerts an expenditure under section No. lo!J of tho -M.C. Act, which section authorises the Council to expend in any nay it thinks lit for the benefit <;f tho city, any sum not exceeding one per centum of the amount of its general rate. Last year (1904-5) this fund proved insufficient by .120 18s I'd. 1 therefore, when a proposal was recently before tho Council to increase vho expenditure on municipal concerts objected to tho propoenl, partly on tho ground that tho fund at the. disposal of tho Council was insufficient for the purpose, and partly hocautfe largo sums aro being expended this year to provide music in connection with the Exhibition, which will also bring bands hero from other places which will provide a full supply of music to the city during the year.
I also showed that certain accounts clashed in the as loans aieounts, including the Sydenham Water Works wero charged with payment of moio interest than was required to pay interest on the loans, th;» Water Works Loan, in particular, being charged with £IJ4 TJs 7d moo than was necessary, and that the Auditor had certified that there was no authority in law for charging interest on overdraft in connection with tho Mromloy cemetery, which was shown to have had a similar advance from tire General Account. If interest on advance to that account cannot be charged, it mu<;t be evident that no interest can be charged on an advance to any other account. Therefore, the accounts are not in proper form, and the interest charged against the Water Works Account is quite illegal. As the regulations made under the Municipal Corporations Act prescribe that tho accounts shall be kept under such heads as the Auditor requires, and according to the Auditor's own showing tho accounts havo not been kept as required by the Act, I contend that I took the proper course in moving that tho balance-sheet be referred back to the Auditor to be revised to meet the requirements of law, and -regret that no councillor could see the necessity of the course, suggested, the result being that tho Council has approved of an illegallyconstructed balance-sheet.
As I had no right of reply, I was unable to criticise at the Council tabic tho City Treasurer's statement; to fully do so .now would take up more of your space than you would care to allow, or your readers to peruse. I therefore content myself with pointing out here that tho balance-sheet as presented to the Council showed unlawful use of loan moneys to the extent of £1353 14s 4d, not £390 4s 8d as stated to have been corrected, and as no amendment ivii: made to tho balance-sheet as presented tho Council must have apnrcved of the sheet as showing the misappropriation of the larger .sum. Even the smaller sum cannot l>e adjusted under section 1(52 of the Act as stated by the Treasurer, because the only three loans snowing a surplus are tho Fire Kngkie and Fire Alarms Account, tlio balance of which must be reserved for tho purposes for which they were authorised, the Contingencies Account balance, which if not legally bound to be reserved, should equitably bo divided among the other loans which aro deficient, a.nd the Heathcote Bridge Account, tho balance* of which is only A3 ss. In my opinion there is no authority to charge loan accounts with other sums than those authorised when the were raised, and that all such ox penditure should Ik? included in thGeneral Account, and tho Auditor \\'<- not done his duty in certifying to th< balance-sheet, in its present' form. ever, with the exceptions he has endorsed upon it.—Yours etc., OHAS. ALLISON.
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Press, Volume LXII, Issue 12569, 11 August 1906, Page 3
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749THE CITY COUNCIL'S BALANCE-SHEET. Press, Volume LXII, Issue 12569, 11 August 1906, Page 3
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