OFFICIAL AUDIT

Otago Daily Times, Issue 26793, 9 June 1948, Page 4

OFFICIAL AUDIT

EXCEPTIONS NOTED CONCESSIONS AND PAYMENTS At a special meeting of the City Council last evening it was advised that the Audit Office had certified the balance sheet and accounts to be correct, with two exceptions:— 1. The granting of concessions in respect to charges for electricity supplied to certain new industries was contrary to the Electrical Supply Regulations. The town clerk reported that this action had been taken under advice from the city solicitor that such action was in conformity with the council’s powers under the Waipori Falls Electrical Power Act. 2. The payment to a contracting firm of a sum of. £3114 18s Id in addition to the sum of £IO,OOO authorised by the Local Legislation Act was without the authority of law. The town clerk advised that the .extras referred to comprised items of additional cost to the contractors, due to an increase in wage rates under war-time legislation after the contracts were signed. The payments had been made in good faith in the belief that they were in fact due to the contractors, and in accordance with the certificate of the consulting engineer. The Auditorgeneral would be satisfied if a validating clause was included in the Local Leigsation Bill, and it was recommended that such a course be followed.