AUDIT OFFICE TO GIVE RULING

Southland Times, Issue 23676, 26 November 1938, Page 20

AUDIT OFFICE TO GIVE RULING

Name On Account Substituted RIVERTON COUNCIL DISCUSSION The passing for payment of an account from a Mr Nicholson was the subject of a brisk discussion at a special meeting of the Riverton Borough Council called for the purpose. It was stated that the account, which was for pipes supplied, had been put in the name of Nicholson because Mr H. E. Philp, a partner in the firm that actually supplied the pipes, was a member of the council and his firm was thus not entitled to accept an order for more than £25 without the sanction of the Audit Department. Cr Philp explained that he had supplied the pipes to oblige the council and that the substitution of the name Nicholson for Philp and Dickson was only a technical breach. The council decided to place the facts before the Audit Department for a ruling. The Mayor, Dr N. G. Trotter, presided at the meeting and there were also present Councillors J. A. B. Walker, A. F. Webb, E. S. Fossey, E. B. Patrick, J. Crawford and H. E. Philp. The Mayor said that the special meeting had been called at the request of some of the councillors and he would ask them to put before the meeting the business.

Cr Webb said that he had been away on holiday and had been absent from the last meeting of the council. At that meeting accounts had been placed before the council. Among them had been one from a Mr Nicholson, which with others had been passed for payment. Cr Webb said that as oyerseer of the unemployed he had, with the approval of the council, authorized all the expenditure necessary to carry on the work. On no occasion had he authorized anything to be purchased from Nicholson, and he did not even know if Nicholson was in business in Rivertori. On his return the account had been drawn to his attention by councillors and he was asked to explain what it was, but he knew nothing about it. Any materials purchased had been obtained through Philp and Dickson. He did not authorize the account and it was to investigate it that this special meeting had been called. The Mayor: How do you question this account? What is wrong with it? Cr Webb: Who is Nicholson? Who authorized the materials to be purchased from Nicholson? lam in charge of this work, but I never authorized a penny’s worth to be purchased from Nicholson.

INQUIRIES MADE Cr Walker said that he had been troubled a lot since the passing of the account. It was not because anything had been done wrongly, but because of the way the account had been put to the meeting. He had made inquiries and he had intended before the minutes were confirmed at the next meeting of the council to question the account, but other councillors had forestalled him and called a special meeting. The Mayor: You are in the same box as Cr Webb. Who is Nicholson? Cr Patrick said that the account had been passed for payment in the usual way because they thought that Cr Webb knew about it, but it appeared that he did not. Cr Webb had never authorized the purchase of pipes from Nicholson and that raised the question of how the pipes were purchased. Cr Webb said that he authorized the foreman to get the pipes from Philp and Dickson and on no occasion had he gone anywhere else to get them. As one of the councillors who called the meeting Cr Fossey said he would like to explain that they were concerned with the matter since the same point, had been raised with the. Southland Hospital Board. It was’a legal point, he thought. The Mayor: You mean we may have to pay something out of our own pockets? “Cr Webb is quite right in a sense,” said Cr Philp. “He did not authorize the pipes from Nicholson. You are well aware that we had to camouflage the account because we are aware that an account could not be sent to the council above a certain amount. I did not like the idea much and I questioned the foreman, who was authorized to ask for the pipes. I said I did not like supplying the pipes. I told you, gentlemen, that there was no monetary gain to us. On a truck of pipes we get only 5 per cent profit and if only one pipe is broken we are out of pocket. Breakages nearly always occur. I did not want the order for the pipes. I let you have them for the council’s convenience. Some time ago there was a motion before the council to procure a truck of pipes and when I told you the price would be £6O the deal was called off. Therefore I did it to oblige the council. Actually when Cr Webb sent over to me it was asking me to break a borough by-law. So to get over this the account was put in another name. When the auditor sees the name of Nicholson on an account, he is not going to ask questions about it. If I think there is'any likelihood of trouble over it I’ll send the money back and get McSkimming to charge it up to the council. It does not matter to whom it is charged. It is only a technical breach of a by-law. “ABOVE BOARD” “My hand was practically forced to give the pipes to the borough,” said Cr Philp. “In our business we have to get a stock of pipes to see us over a month or so and a truck does that because we are not always doing drains. If the borough had got a truck it would have used only a few and there would have been a lot left on hand. You will see by accounts I have shown that we get only five per cent off six-inch pipes. There is nothing in it for us and if we did not pay by the end of the month we would not get any profit at all. I certainly received £45 for the pipes, but anything done has been done above board. It was a technical breach in putting in Nicholson’s name instead of Philp and Dickson’s.” Cr Webb: It may be a technical breach, but I think it is more. I think the town clerk should have told the council about it at the last meeting. Cr Philp: The accounts lie on the table for every councillor to see if he wants to. The town clerk does not have to look into the accounts. As long as the accounts are in order that is all that concerns him. TOWN CLERK’S STATEMENT The town clerk (Mr G. O. Cassels) on being given permission to speak, said that it was unusual for the clerk to make any comment, but he had to say that he did not accept any responsibility. He knew nothing about the pipes till the account came to the office. Accounts were placed on a sheet and put before the Finance Committee, They were put before the council and no one had questioned them. The accounts were before the council at the last meeting and he prepared io read them as usual when a councillor said: “Never mind reading them,” and they were passed for payment. Cr Patrick said he considered the matter was purely one for the Audit

Department and suggested that' the business be reported to that departfhent for a ruling. Cr Walker said that that was the best plan. The by-law stated a limit of £25 and if the sanction of the Audit Department could be obtained this could be extended to £5O.

The Mayor: That has hit the nail on the head. As for a charge against Cr Philp and the town clerk I have never heard anything like it in my experience. I think that Cr Patrick’s suggestion is the right one. It is just a technical breach and Cr Philp made nothing out of it. It is a pity this ever occurred. However, it is the Audit Department’s business, not ours.” It was decided that the facts before the council be forwarded to the Audit Department for a ruling.