FUNDS MISAPPROPRIATED

Taranaki Daily News, 1 February 1933, Page 9

FUNDS MISAPPROPRIATED

KAPONGA CLERK CONFESSES SEQUEL TO VISIT BY AUDITOR. SHORT BANKINGS TOTAL £9O. COMMITTED FOR SENTENCE.

Harry A. T. Gallagher, formerly town clerk of the Kaponga Town Board, was charged before Mr. W. H. Woodward, .S.M., at the Police Court at Eltham yesterday that on October 28, 1931, being the servant of the Kaponga Town Board, ho stole £5, the property of the board. He was also charged with stealing at various dates various sums amounting to £B5, also, the property 'of the Kaponga Town Board.

After the evidence was taken accused, who was represented by Mr. J. Hessell, pleaded guilty and' was committed for sentence at the Supreme Court at New Plymouth. Bail of £lOO, with two sureties' of £5O each, was allowed. George Edward Alley,. Government auditor, said that on January 17, 1933, he commenced an audit of the Kaponga Town Board’s books. The accused, who was clerk to the board, was asked by witness for the cash. This was handed to him on the counter, and he counted it., About 5 o’clock on the same day accused infonped witness that he was about £9O short in his cash; and he explained several days later that short, bankings had commenced about October 28, 1931. He accepted full responsibility for the shortages. Tire banking was usually done about weekly. On the day following the commencement of the audit the accused informed witness that there was an 1.0. U. (produced) in the till for the shortages. Witness had completed an audit of the books and found a total, shortage of £9O. The last banking was on January 16, ’ 1933. The date of the first shortage' in banking was October 28, 1931, when the amount-bank-ed was £5 less than the receipts shown. Intermittently there were short • bankings right up to January 16, 1933, there being total short bankings of £B5 in addition to the first'£s. At April 2, 1932, the total shortage was £75 19s 4d, and accused said that he had also used £l3 from imprest cash to help make up the banking' at that date. The total shortage was £BB 19s 4d at that date and up to January 16, 1933, it had increased up to £9O. The accused was perfectly frank about the matter. “NO CONCEALMENT.” To Mr. Hessell: Since the audit there had been no attempt at concealment. The •accused might have shown witness the 1.0. U. the same night, but to his best •recollection it was next day. He gave it bilk to. the accused. The shortage might have been £9O at April 2. The books..had been well kept and written up to date and showed the whole of the board’s transactions quite clearly. As far as he could ascertain all the records were complete. Once the shortage of cash was made' up the books were in perfect order for accused’s successor to take over, and they required no adjustment by him. Except for this charge there was no evidence of any neglect. After. the cash was counted and the cash book examined the shortages were apparent. There was no falsification, of the records. If the accused’s word was accepted that the £l3 imprest cash was used as stated the defalcations stopped at March 31, 1932, excepting the sum of £1 0s 4d. The last banking supported the giaatement that he had’ used the imprest cash. Witness had been in close touch with accused since 1929. He was new to the work when he took over, and witness thought he had done very well indeed. When he took over the books were in a fairly bad state of muddle, and the accused cleaned up that muddle and brought everything up to date. The financial position of the board had unproved since the accused had been in charge. The cash position at March 31, 1929, was: Cash in bank, ss; cash in hand, £621; sundry debtors, general, £BO4 16s lOd; electricity, £2298 13s; total, £3724, 14s 10d. Liabilities: Bank overdraft, £2670 6s Bd. Detective A. Meiklejohn said he could not see the purpose of Mr. Hessell going into the details of the Kaponga Town Board’s finances. Mr. Hessell explained that it was in mitigation of penalty. The magistrate allowed a. typewritten statement to be put in on the lines, asked for by Mr. Hessell. CASH POSITION IMPROVED. The cash position of the Town Board at the several periods mentioned was submitted, and witness. stated that this represented an improvement in the cashposition of approximately £lOOO. It was accomplished by realising on sundry debtors and applying the. proceeds to the payment of sundry creditors. This was due chiefly to the energy and ability 'of the accused.' The audit visit was a surprise visit and when witness visited the office everything was entered up to date, receipt book, cash book, ledger and other records. In his experience it was unique to find the records so complete when there was defalcation. At the conclusion of the audit he found the position as confessed by the accused. The last audit was in August, 1931. To Detective Meiklejohn witness said there was nothing to indicate when the 1.0. U. had been made out. . ' Detective Meiklejohn said ' that on January 24 he interviewed the accused and asked him whether he desired to make any statement regarding the shortages. After consultation with Mr. Hessell accused made a statement, which he said was correct and he signed it. .Ac-, cused admitted the :v.ortages that were the subject of the two charges. - Cross-examined witness said he was present at the consultation and there was no obstruction. He received all help from the accused and Mr. Hessell.