AUDIT COMMENTS

Dominion, Volume 28, Issue 112, 5 February 1935, Page 10

AUDIT COMMENTS

Wellington City’s Balance-sheet REPLIES APPROVED Departmental Finances The finance committee of the Wellington City Council was informed last evening by the Mayor, Sir. T. C. A. Hislop, that the council’s balancesheet for the year ended March 31 last had been received from the AuditorGeneral (Mr. G. F. C. Campbell), who bad reported as follows: — “The Audit Office, having examined the balance-sheet and accompanying accounts required by law to be audited, hereby certifies them to be correct subject to the following comments:— “(1) In the opinion of the Audit Office the amount of the outstanding accounts of the electricity department is excessive.

“(2) A book of the electricity department substitute receipts Nos. 5501SGOO was not produced at audit. “(3) The electricity, milk and tramways departments revenues are understated in the respective revenue accounts by the undisclosed deductions of bad and doubtful debts.

“(4) The credit balance of the revenue account of the electricity department is understated by the value of the cable which was purchased and charged to revenue during the year, and which is still held in stock. - “Exception: The bank overdraft of the milk department exceeds the limit allowed by section 3 (2) (c) of the Local Bodies Finance Act, 1921-22.” City Treasurer’s Replies. Replies to the Auditor-General’s comments were made by the city treasurer (Mr. C. Collins) as follow: — “(1) A considerable amount is outstanding in the books of the department in connection with the changeover work in which very many consumers were concerned. The financial stress of the last four years added very considerably to the difficulty of obtaining settlements of these accounts. Many electricity accounts are also owing by consumers due to the difficult times that they are experiencing. The total amount owing should not be considered excessive in the circumstances.

“(2) This was one of the books in the hands of the workshop staff overseer, and was evidently mislaid or lost by one of the men. “(3) The income from the sale of electricity shotvn in the revenue account is the amount obtained and is not,that of the gross accounts rendered to consumers. It has been the consistent practice of the department since its inception to present the accounts in the same manner as shown in the bal-ance-sheets now under review.

“(4) The cable evidently referred to was purchased for maintenance, and is being drawn upon strictly for that purpose.

“The matter of the bank overdraft to the milk account was referred tfi by the Audit Department the previous year. As soon as the Dixon Street property is sold the overdraft will be wiped cut.” Cr. W. Duncan asked if the Audit Department consulted the heads of departments concerned . before it commented or did it send the comments direct to the council..

The Mayor said that the report was received by the town clerk, and was submitted to the city treasurer for replies. The council approved the replies and decided that they be forwarded to the Auditor-General.