OUTSTANDING REVENUE

Wanganui Chronicle, Volume 73, Issue 425, 17 November 1930, Page 6

OUTSTANDING REVENUE

AUDITOR-GENERAL’S REQUEST

THE POSITION AT RAETIHI

(From Our Own Correspondent) RAETIHI, Nov. 16.

A special meeting of the Ractihi Borough Council was held on Thursday to finally settle and sign the balance sheet and consider the report of the auditor-general and aurnortse the publishing of the balance sheet. There were present: The Mayor (Mr 11. W. Littlewood), Crs T. S- Fagg, R. Higley, W. Harris, R. H. Rieper, G. Anderson. L. Baird, C. a. *J. McDonald and C. W. Ashwell.

Copies of the balance sheet for the year ending March 31. .1930, had been circulated among the councillors.

The statement of assets and liabilities show'ed assets at £3*1,884 18s l f( d and liabilities £1399 9s 4d. The public debt on March 31 was £72,034 16s 8dKates outstanding at the beginning of the year totalled £3915 8s 5d and at the end of the year £4368 10 s 10d. The rates struck during tnc year were £1704 14s 1d and during the year there were collected £4174 4s Ud and £lO7 2s -d was allowed as discount for prompt payment- The electricity department sundry debtors stood at £1614 9s lOd, including £ 166 ,16s lid for Mar» h consumption. The rent collected for reserves during the year was £Bl 13s 2d and at the end of the year there was £ll7 10s lOd outstand-!ng. The amount outstanding at the beginning of the year was £lO7 2s 6d and the rent for the year was £92 Is 6d. The audit office cnfaced the following on the balance sheet: “The audit, office, having examined the balance sheet, and accompanying accounts required by law to be audited hereby certifies them to be correct subject to the following: Comment: In the opinion of the audit office the, amounts outstanding for rates, electricity fittings and rents are excessive. Exceptions: (1) Expendi!iure in respect of the Makotuku Bridge amounting to £420 5s 3d has been wrongly charged to the £15,565 Streets Impt.., Loan and a refund of the amount from District Fund is required(2) The library records are insui'iicient to enable the revenue derived therefrom to bo verified. (3) The bank overdraft exceeds the limits imposed by Section 3 (2) (cj Local .Bodies Finance Act 1921-22.”

The audit inspector wrote stating he has advised the audit olTico that the Council has nof so lac paia over any money for Investment on account of depreciation and in hits connection calls attention to requirements of Sec. 49 Municipal C Act, 1928 with refer once to the position when from any cause the amount credited to the Depreciation Fund cannot be paid. The auditor-general wrote as follows: “ Your attention is directed to the comment and exceptions enfacod on the accounts of your Council for the year ended March 31. 1930 and I shall be pleased if you will advise mo when the refund referred to in Exception No. I has been made and also what is the position regarding the funding of the Depreciation Reserve of the Electric Light Undertaking.” Letter to Mayor The auditor-general wrote to the' Mayor as follows: Your attention is directed to the comment and exceptions cnfaced on the accounts of your Council for the year ended March 31, 1930. The inspector in reporting on the unsatisfactory position which exists regarding the Council’s failure lo take effective remedies to collect the outstanding levenue, points out, that several of the largest defaulters arc members of the Council and that although it was resolved by the Council to hand over the outstanding accounts to the borough solicitor for collection, in only a few cases has action been taken. The Council’s failure to take adequate steps to collect the borough overdraft Las resulted in the amount of the bank overdraft at March 31, 1930 exceeding the statutory limit imposed by Section 3 Local Bodies Finance Act. 1921-22. and has consequently rendered 1h members of the Council liable to the penalties imposed by Section 59 Local Bodies Loans Act, 1926. I shall therefore, he pleased to receive from you any explanation regarding the breach of statute that the Council may wish to make and I shall be glad also if. at the same time you will let inc know what action the Council intends taking to immediately remedy the present unsatisfactory position- The inspector has also drawn attention to the financial records of the library which arc totally inadequate from an audit point of view and he suggests that in order to place the matter on a satisfactory bash the borough treasurer should bo made responsible for the records and that all subscriptions should lie paid at the borough office. This matter should be brought before the notice of the Coun cil and the audit office advised in dui course of any action taken to improve the present system.” On the motion of the Mayor, seconded by Cr. Harris, the balance sheet was adopted and agreed to as correct. Minister’s Consent The Mayor said that the Council had the various matters under consideration when the audit was being made and he thought that the audnur-gcncral would be satisfied with the steps taken by he Council. With regard to the first, tag he understood that the Council had the consent of the Minister of Internal Af fairs to what, was don© and he asked that the clerk write and explain the position to the auditor-general- At the end of the year when the bridge was finished and paid for the account would be in order. T he clerk explained tlieposition with regard to the library to the inspector. Considerable discussion took place over the third clause ana me clerk was asked to bring forward a statement at the next meeting showing the position. The Mayor said that with regard to the letter of the auditor-general to him ho would point out, that since the preparation of the balance sheet and at the end of last financial year the Council had taken drastic stop,-, to collect all outstanding accounts. He was sure that the auditor-genoral would agree that the Council had done all Hint was pos sible. Everybody had been dealt with in the same manner and no difference had been made between persons. With regard to the library it was hard to understand the position. The library aceouiit was kept by the Council and appeared in the balance sheet and was audited. Ho gave notice of motion to be considered at next meeting that the Council review the policy with regard to the library and that the suggestion of the auditor general ho carried out and that the Council take over the control of the, library. In reply 1o a councillor the, c’erl said the Council applied for a Gov-

eminent subsidy for tnc library and It was paid through the CouncilCr. Baird asked who was responsible for the funds of the library. Was it the library management committee, or was it the Council? The Mayor said the whole situation would be discussed when the motion was brought forward at the next meeting. With regard to the Depreciation Fund Committee the Council would deal with that appointment in a recommendation from the Electricity Committee. ’ Sueing for Bates According to notice of motion Cr. a gg proposed that the policy of this Council for the year 1930-31 and future years shall be to sue for ratis that are not paid six months after the ten per cent- penalty has been auded and that after judgment has been obtained to at once take the necessary legal proceedings for recovery of same. It was stated the idea of the motion was to prevent the Council getting into such a bad position again with regard to rates in arrears. The Council had no desire to bo hard on any one. It was the desire of every councillor to be as lenient as possible with those in arrears. The ability or ratepayers to pay their rates must be taken into conbideration.

After discussion. Cr. Rieper proposed and the Mayor seconded an amendment as follows:

That the policy of this Council for year 1930-31 shall be to sue for 1930-31 rates that are not paid nine month* after the 10 per cent addition has been made and future year’s rates bo sued for six months after the 10 per cent penalty has been added and after judgment has been obtained to at once take the necessary legal steps for recovery- The amendment was carriedThe Mayor said that if those in arrears with their rates kept up to their obligations and paid the instalments as agreed to by the Council the position at the end of this financial year would be very satisfactory. The accounts would be just about square.