AUDIT OFFICE "TAGS"

Timaru Herald, Volume XIIC, Issue 14074, 4 December 1909, Page 3

AUDIT OFFICE "TAGS"

SIR J. G. WARD EXPLAINS. Regarding "tags" to balance-sheets, referred to by Air. Hanaiij the i'rnne Minister said: ".Nothing has recently boon done, and the Audit Office scan is not strong enough to do anything in the matter beyond taking tne exceptions. These exceptions are, however, beginning to operate effectively by the consideration which they receive from the lenders of the money required by the local authorities. Most of the faults found with the accounts are respecting things done as to which, though they are not in accordance with law, the Audit Ofhco can only take exception. But'in such cases the exceptions serve as instructions respecting the law. For moneys unlawfully expended or applied, or liabilities unlawfully incurred by a local authority, unless such local authority has acted in good faith and on legal advice,' the Audit Office is by section 114 of the Public Revenues Act, 1908, required to surcharge with the amount the members responsible, and to 'take all steps necessary to recover the same in any court of competent jurisdiction as a debt due to such local authority, and the same shall be recoverable accordingly;' but the proceedings in the past have not been satisfactory. To surcharge and take the necessary proceedings in all cases apparentlyopen to them would include many cases where the law is misunderstood. It would, moreover, require an appropriation for one or two additional audit inspectors and for the contingent expenses; for the audit inspectors at present employed have their time fully occupied in the performance of their duties of inspection. .The local authorities, indeed, often complain that their accounts are not examined as soon as ready for examination."