AUDITORS' TAGS.

Timaru Herald, Volume XIIC, Issue 13975, 9 August 1909, Page 7

AUDITORS' TAGS.

A VIGOROUS PROTEST. Local bodies in Soutl* Canterbury have been subjected to annoyance for some time past through tags being attached to their balance sheets by the Government auditor. The Mackenzie County Council has wearied of this treatment, and the treasurer to that body (Mr R. L. Banks) has forwarded the following letter -(unanimously approved of by the Council) to the Auditor General:—"l have the honour to acknowledge the receipt of the half-yearly balance sheet of the Mackenzie County to 31st March. 1909. "With reaafd to tag Xo. o

thereon I should liko to say a. few words in reply. The tag reads as follows: —"Grants to South Canterburv Jubilee Celebration £lO, and to M.C. A. and P. Society £o ss, and. amount of £3 14s entertaining Premier, are without authority of law and are therefore disallowed." Now these payments were all made, and clearly show on the balance sheet, under the authority of "The Public Revenues Act. 1908." Section Tlo .(I)

of that Act reads as follows:— ; 'It shall be lawful for the Audit- Office to allow in the accounts of any County Council any moneys spent on. purposes other than those mentioned in any Acts for the time being in force authorising the expenditure of the funds of such Council

. . ." . . if the Audit Office is satistied that such expenditure was made bona -fide in the service and: the in-

terests of the inhabitants cf the district administered by such Council . . . . and such expenditure has not exceeded one per centum on the in-, come of the Council . .'. ."

It appears to me that iu the items objected to you might fairly and reasonably have exercised 3-our discretionary right of allowance. The members 01 the -Mackenzie County .Council are elected by the ratepayers of the county, and are entrusted by flieni with tlie expenditure of the County iunds, and presumably they should be tho best judges of what is _amUwhat is not in tho interests of .inhabitants. The fact of tboir- being re-elected from time to time' goes to show that the ratepayers are satisfied with their actions. In .niy 'opinion, you iu your capacity as Auditor General, residing in W-eiliug-ton-and not being in any way cogm.s.an&of tlie requirements of the district, -cannot be in as good a position t to say tEai~the-iitems enumerated are 'not in the interests of the inhabitants as the local liody voting t\\g money. . .1 should be glad in any case for my future guidance if you would quote the nature of any items of expenditure which you would be prepared to classify as eoming under cover of section 115. With"regard to the concluding words of your exception "the amounts arc therefore disallowed "' I should be glad what meaning that is intended- to- convey. Does it mean that your office will take action under section 1J.4 of '"The Public Revenues Act, ,1908'"'- to " Surcharge the amount ■jointly'and severally upon all the members of the local authority," as therein provided, or that no action will be tjken, but that you merely record an alleged illegal expenditure _ and _ let it jrcst.'at" that. ? llie 'appears tomyiuind to be an altogether unsatisfactory one. If the expenditure is illegal then by all means let a legal recovery be made -as provided by section 114; if not, I respectfully hold that the irritating tags should be discontinued." \ To this letter tho Auditor-General has not so far sent any reply.