PUBLIC ACCOUNTS

Evening Post, Volume CII, Issue 28, 2 August 1921, Page 4

PUBLIC ACCOUNTS

DEFALCATION CONSIDERED

•A SUGGESTED REMEDY,

At the recent Public Service Association Conference it was resolved: "That the association urge upon the Government the advisability of setting up a, commission' of experts, not necessarily members of the Public Service, for the purpose of examining the present system of public accounts, and of reporting to the Government Whether, in their opinion, the system includes adequate safeguards against fraudulent manipulation of public moneys."

. In presenting fcho resolution to the Assistant-Public Service Commissioner (according to the Public Service Journal), Mr. W. M. Wright stated that tlus matter was recently brought under the notice of the Acting-Prime Minister. "We are not satisfied that the safeguards against fraudulent manipulation of public moneys are sufficient, and far the credit of the service we consider that the Government should set up some sort of commission to look into the matter and report. We' are very much concerned indeed about what has happened lately, and we think there must be some fault on the part of the system in practice now to enable these defalcations to occur. There is a lack of supervision or weakness in the methods."

Assistant-Commissioneir (Mr. Verschaffelt): "Very few of these defalcations have occurred in what might be termed ■the regular Government Departments, where the Treasury system is in force." Mr. Wright: "The general public do not know that."

Assistant-Commissioner: "You coukt lot them know thai most of the cases have not occurred in what may be regarded as Tegular departments—departments under tile control of the Treasury as regards their funds."

Mr. Wi-ight: "If the system is lax, it does not matter in what department, the system should be altered."

Assistant-Commissioner: "I do not think any system will ever eliminate the human element."

Mr. Wright: "I£ any department 13 lai in its supervision, such an inquiry as this might have a good effect. No matter how perfect a system may be, if supervision is lai it leaves a greater loophole for fraud; and we do think that, for the credit of the Public Service, some inquiry should be made a-s ■to whether, these "defalcations are owing to the imperfections of the system or whether a proper system is in force. It leaves then only the human element to deal with. We trust that wo are going to have your support, and that of the Commissioner, in this matter."

Another resolution presented was: "That in order to assist in the simplification of accounting in the Public Service, the Government be requested to set up a committee of competent officials .selected from the Public Sarviee to prepare a handbook on Public Service accounting far the guidance of officers in the service, and to invite suggestions in regard to improvements in the system of accounting from and through such committee."

- Mr. Wright said: "We erpeot thereby to improve the system of accountancy. We know some time ago a committee was set up to go into the question of accounts. They reported, and certain alterations were made. Shortly after that system was introduced a fraud was committed which, to my mind, was owing partly to the method which was adapted as '«, result of the setting up of that committee. Only that particular case—l'do not say every case can be ascribed partly to the now system. We think it would be a good thing if, after experience of the system now in forbe, a committee of experts was set up to compile a handbook of instructions. Officers are continually being changed in their duties; new men come in who probably have not been properly instructed by their predecessors, and in some cases they are without proper guidance. We think it would be a great improvement if this were done. I take it it would only be a question of cost; and there would be no doubt about the advantages of it. We hope we are going to have the Commissioner's assistance in having it earned out."

Assistant-Commissioner: "If what you really meaji is the drafting of instruction "books, that has been advocated by the Commissioner for some considerable time."

Mr. Wright: "Possibly -we are encroaching 1 on the Commissioner's territoiy in advocating these things, but if the Conimissionor has it in mind, we are quite satisfied J' Assistant-Commissioner : ' 'As regards instruction books, that suggestion wu made to each department some time ago, and it "would have been carried out in many departments but for the fact that the war came on and hindered it being put in hand. In the earlier reports of the Commissioner's it was regarded as very essential that there should bo instruction books properly drawn up, hot oraly oai' accounting, but on other matters for the guidance of all officers. The preparation of instruction books in an intelligent form, how; ever, is rather a- big undertaking." Mr. Wright: "In view of the recent frauds it seems to me there should be some sort of inquiry into the matter."