LOCAL BODY AUDITS

Manawatu Standard, Volume LIII, Issue 115, 12 April 1933, Page 10

LOCAL BODY AUDITS

MOVE FOR, REDUCTION IN

FEES

At its last meeting the Manawatu County Council received an account from the Audit Department in connection with the annual audit of flic council’s accounts, and, after consideration had been given the sum charged, it was decided to apply to the department for a reduction in the fee, pointing out that the all-round national reductions made warranted a reduction in the fees charged by the department. A reply was received at yesterday’s meeting of the council from the Minister of Internal Affairs (Hon. J. A. Young) to the effect that the council’s request for a reduction had been considered, but the Government regretted it could not agree to the request. The Government had already curtailed the administration expenses of the Audit Office, and if it were to still further reduce the charges to local bodies the effect would he to hand over to the local bodies the savings made in the department to assist in' balancing the national Budget. The Minister further pointed out that the scale of fees charged by the department compared more than favourably with the fees charged by the New Zealand Society of Accountants for auditing local Ixidies’ ac.counts, the respective figures being £7 per day exclusive of travelling expenses by the society and £3 3s per day by the department inclusive oi travelling expenses. The chairman (Cr. W. E. Barlier) commented that whilst the society may have a fixed price most bodies tin speaker was connected with fixed their own audit fee and had no trouble in getting the work done. Cr. J. Boyce thought the council should reply pointing out that tin council had a budget to balance as well as the Government.

Cr. W. E. Pearce considered tin idea of the department was that it did not matter about the council ; budget so long as the Govermncn. Budget was not interfered with. The chairman the repij as a very selfish one—he was surprised at the attitude adopted by the department. Cr. J. H. Perrett urged that tli. department he replied to on the line: of Cr. Boyce's remarks. Tin speaker contended that any comparison with the New Zealand Society oi Accountants “did not hold water” to' the reasons stated by the chairman viz., most local bodies fixed their owi audit fee and had no difficulty in ob taining the services of a reliable audi tor to do the work.

“Even if they gave us a little cm sideration we would not mind,” r< marked the chairman.

It was decided to reply to the de partment on the lines suggested am to also forward a remit to the Coni: ties Associations’ Conference pointing out the desirability which existed fo a reduction in the fees charged by thAudit Department.