STRICT AtIDIT

Evening Post, Volume CVI, Issue 30, 4 August 1923, Page 9

STRICT AtIDIT

AND LOCAL BODY ACCOUNTS

THE REASONS STATED

FAILURE TO OBSERVE THE LAW.

Not infrequently members of local bodies complain of the strictness of the Audit Department in relation to municipal and other accounts, and at times the addition of "tag 6" forms the subject of mild sarcasm. From the annual report of' tho Auditor-General (Colonel G. F. 0. Campbell), however, it would seem that there is need for exercising a close scrutiny over the accounts of local authorities. AN INCREASING DEMAND. . "The audit of local authorities' accounts for tho year that has elapsed has not been, attended by any striking features," says the report, "but the demand for audit seryices consequent on the ever-increasing powers and rapid ex- J tension, of operations of local bodies is such as to make more adequate staff provision imperative. During the period under review; the Audit Office has been called upon to take action in consequence of breaches, of the statutes governing the local authorities whose accounts are subject to its examination as follows:—Breaches of trustee law, 2; defalcations, 5; disqualifications, 11; ex-" cess interest payments, 2; illegal borrowing, 2; illegal expenditure and payments, 6; illegal grant, 1; illegal transfers of moneys, 2; loan poll expenses wrongly charged, 2; loan moneys illegally used, 3; recovery of fines, 2; recovery of harbour dues, 2; travelling expenses illegal or excessive, 11; 'unauthorised'excess, 7. "So far there has not been any serious difficulty experienced with regard to the application of the requirements of the Local Bodies' .Finance Act, 1921----22, relating to the determination of the antecedent liability, save in one inetauce, where, however, an agreement was eventually come to. It is anticipated that some time must elapse before local authorities will readily adapt themselves to the altered conditions.

"There is room for reform in relation to the collection of hospital fees in many cases, the yearly writings^off of which involve larger sums than 'would appear to be warranted if ordinary business care and energy were applied to the matter. This remark is made with a full consideration of present financial conditions. . "I desire to take this opportunity of again stressing the necessity for enacting some, uniform provision regarding disqualifications, which will be applicable to members of every local authority. At the present time a person may be disqualified for acts in respect of one local body of which he is a member, while no disqualification would ensue for a similar act in another local body. Similarly, there is a lack. of uniformity in tho provisions for paying travelling expenses to members of the different local authorities which might with advantage be remedied. . ... ...... ■ ! "I also venture to express the, h&pe that satisfactory provision will be made in the new harbours legislation, in t re T gard to-'the .^proportion >of -electoral ex- ' penses which shall be borne by harbour boards, as the position is now rather a vexed one, with .which none of tho parties concerned appears to be content. ■•■ " ' '■ • ■•..-, A HINT TO MEMBERS. "One of the greatest causes of-trouble in connection with the audit of local authorities is that many of the gentlemen who become members fail to mako themselves thoroughly acquainted with the statutory rules and conditions which govern their actions and the actions of the officers under them: It is not too much to say that a reasonable familiarity by members of local authorities with the terms of the Acts which they are called upon' to' administer would prevent at least 50 per cent, of the irregularities both of practice and conduct which noiy occur, and would thus result in considerable advantages both to the members themselves and to Audit. As the matter stands now, the Audit Office is -frequently arraigned, without opportunity of retort, for being harsh or absurd in its methods because it ■ insists on the observance of the law,' which is mandatory in its terms and allows no discretion to the Controller and Auditor-General.". The Auditor-GeneraJ concludes by saying that lie cannot speak too highly of tho zeal displayed by tho staff in tho discharge of duties which in many 1 cases are not of the pleasantest description, and in the carrying out of which the officers do not always receive that assistance, and co-operation which is so I necessary for the detection of irregularities. ' . • j