LOCAL BODIES

Southland Times, Issue 21822, 27 September 1932, Page 6

LOCAL BODIES

MISUSE OF FUNDS * CRITICISM OF AUDITING WORK DEPARTMENT’S REPLY (Per United Press Association.) Wellington, September 26. The increasing number of defalcations by officials of local bodies was the subject of a remit passed at the recent conference of the New Zealand Counties’ Association. The remit mentioned the apparent failure of the Audit Department officers to detect various misappropriations in their early stages, local bodies incurring subsequent loss through their inability to recover from insurance companies within twelve months. In a reply received by the association, the Auditor Controller General says the Audit Office is of opinion that the period generally covered by a fidelity policy is insufficient in view of the fact that in mr.ny instances the accounts were not ready for a complete audit until some considerable time after the period expired. It is suggested that the cover be extended to defalcations discovered within two years or eighteen months from the time of commission. ’Dre letter also mentions that delays in audit frequently occur through the dilatoriness of some clerks. The letter states that the remit was moved by the Maniototo County Council and draws attention to the fact that the audit inspector had advised the chairman on two occasions that the accounts were not kept up to date. Subsequently it was ascertained that he failed to inform the council of the clerk’s failure to keep accounts up to date. ____