NATIVE AFFAIRS

New Zealand Herald, Volume LXXI, Issue 21776, 16 April 1934, Page 11

NATIVE AFFAIRS

STORES AND ACCOUNTS AUDIT DIFFICULTIES INSTANCES AND COMMENTS In his evidence before the Native Affairs Commission in Wellington the Controller and Auditor-General, Colonel G. F. C. Campbell, quoted the following three, instances of how the disregard of the usual rules of stores accounting affected Audits work: — 1. During the period 27/11/1931 to 26/4/1933 fencing materials of a very considerable value were purchased bv the Native Department for use on development schemes situated in Tikitiki district. Mr. Goldsmith, farm supervisor. who also held the position of manager of the Waiapu Farmers' Cooperative Company, was responsible for distributing the material as required. Owing to the absence of official records Audit inspectors had great difficulty in obtaining definite information concerning the disposal of this material. After the commencement of Audit investigations in this district, however, the manager of the above company on October 19, 1933, paid by his firm's cheque the sum of £422 19s od into the Public Account as payment for certain scheme materials described in the vouchers. It would appear to Audit that this material had been misappropriated by the company, but owing to the absence of a proper system of stores accounting it is impossible foi Audit to check this payment or to ascertain whether there are other stores similarly unaccounted for; nor is it possible for Audit to ascertain from any records why these stores were unaccounted for during such a long period and whether the balance ever reached the schemes for which they were purchased—see report by Audit Inspector Scott on file A, 43-11. Development Schemes 2. Mr. H. T. Mitchell, supervisor of Maketu and other native land development schemes in the Rotorua district, made use of development scheme stores for the improvement of private properties, including his own. In a statement he made to the police on February 9, 1934, Mr. Mitchell admitted that this had been done and estimated the value of the fencing included in the above work at £696 2s 3d. The Audit Office could find no records of the quantities of materials issued or of the cost, and was compelled to obtain the services of the assistant engineer, Public Works Department, to obtain the fences and make an estimate for the purposes of check —see file A, 43-17. 3. Owing to the unsatisfactory state of the livestock records in the Rotorua district no reconciliation between stock and records could be made by the Audit inspector. I am aware that the Native Department has been endeavouring to reconcile the records with the stock, but has not yet reached finality. The position of one portion of the account, however, relating to ewes only, appears to indicate that out of a total of 27,492 ewes purchased in the Rotorua district no less than 3-530 are unaccounted for and 4his does not include the natural increase. Departmental Efforts "I should like to place it on record," said Colonel Campbell, "that the difficulties which the Audit Office has met with in its endeavour to make n successful audit of the accounts have not been due to any disinclination on the part of the officers at the head office of the Native Department to assist the Audit examiners. I am aware that efforts were made by the department to introduce sounder methods of accountancy in the earlier periods of the development schemes, but these efforts do not' appear to have been verv successful." THE AUCKLAND SITTING ARRIVAL OF MEMBERS The Native Affairs Commission will commence the hearing of evidence in Auckland at the Native Land Court at 11 a.m. on Thursday. Two members of the commission, Mr. John Alexander, of Auckland, and Mr. L. W. Nelson, of Whangarei, arrived in Auckland from Wellington on Saturday morning. It is expected that the chairman of the commission, Mr. Justice Smith, will arrive to-day, and the fourth member, Mr. D. G. Johnston, of Wellington, is expected on Thursday morning.