Departmental Defalcations More Numerous

Northern Advocate, 1 August 1940, Page 2

Departmental Defalcations More Numerous

[Special to “Northern Advocate"] WELLINGTON. This Day.

According to the Controller and Auditor-General (Mr C. G. Collins), in his annual report on the Public Accounts, tabled in the House of Representatives yesterday, defalcations on the part of departmental officers were unfortunately more numerous than those recorded in last year's report.

The largest of these irregularities appears under the heading Post and Telegraph Department, and occurred in a small post office under the control of a non-permanent postmistress." Mr Collins states.

“The circumstances of the theft were by no means unusual and the theft was not the result of any defeel

in the accounting system. Times, Quantities Inflated. “The irregularity shown in the statement as having occurred in the Public Works Department concerned the hiring of privately-owned lorries for purposes of transporting materials to be used on construction work. "As the result of collusion between lorry drivers and the department's representatives, times and quantities were inflated ever a peried of several weeks, a form of fraud which it is particularly difficult to detect." Irregularities in the Treasury Department and the Industries and Commerce. Tourist and Publicity Departments are mentioned by Mr Collins, •mo says it is evident thru r.n major deialcat.on on, been facilitated by vo-.-krios: in departmental systornCiVi'/itaiitiy 'A aiehifig. But the Audit Office is constantly on the watch to guard against the possibility of loss through laxity, or through lack- of appreciation of the bf unfits of internal checks. Four cases of misappropriation of funds by local, body officials during the year were investigated by the office, the report states. The total smri involved was 1' t;S(), the major portion of this being in respect of one defalcation of £637. The work of audit inspectors during the year disclosed two cases in which county councils made unjustified claims on public moneys and received payment in respect of those claims.