NO SERIOUS "TAGS"

Evening Post, Volume CXIX, Issue 30, 5 February 1935, Page 10

NO SERIOUS "TAGS"

CITY BALANCE-SHEET *

COMMENTS BY AUDIT OFFICE

TREASURER'S REPLY

.The formal settlement of the bal-ance-sheet for the year ending March 31 ; last was dealt with by the City Council last night. The balance-sheet was not returned by the Controller and Auditor-General (Colonel G. F. C. Campbell) devoid of "tags," but they were not of a very alarming nature. The balance-sheet, said the Mayor (Mr. T. C. A. Hislop) had been returned with the following certificate and comments:-— 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 electricity department substitute receipts Nos. 5501-5600 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. The following exception was taken: "The bank overdraft of the milk department exceeds the limit allowed by the Local Bodies Finance Act, 1921-22." CITY TREASURER'S REPORT. The Mayor read the following report by the City Treasurer (Mr. C. Collins):— .- . (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 as 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 shown in the revenue account is the amount obtained and is not that of the gross accounts reride*ed 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 use and is being drawn "upon strictly for that purpose. ' "The matter-of the bank overdraft, to milk account was referred to by the Audit Department the previous year," said the City Treasurer in his reply to the exception. "As soon as the Dixon Street property is sold the overdraft will be wiped out." The formal resolution settling the balance-sheet was passed, and the replies are to be forwarded to the Audi-tor-General. '■■-. • , In reply to Councillor P. M. Butler, the Mayor said .that as far as the receipt book mentioned was concerned, it had been already written up through the ordinary account .books. It was simply a book which had been mislaid. There was no question of defalcation.