13

COL. E. J. COLLINS.

I.—ll

18. The Chairman.] Supposing, for example, a cheque for £10,000 was issued for railway stores on the 30th March, .and was not paid until the 4th April, would that payment appear ac a payment for the year ending 31st March?— Yes, for the year in which it was issued. 19. Mr Allen.] But under the post-audit system it would not have been audited till the next year?— Not till after the 31st March. 20. The Chairman.] Although the audit would not be complete it would appear in the financial operations of that year as having been made?— Yes, under the post-audit system. 21 Does the Audit Department audit the whole of the business of the- Government Departments?—Yes. r 22 Post Office and Railways and everything?— Yes. 23. And the system that obtained some years ago, when some Departments did their own auditing, has been superseded?— Yes. 24. Mr Fraser.] Under the pre-audit system are the tables which accompany the Financial Statement of the Government audited or not?— They are not audited for that purpose It does happen that Table No. 1, the abstract of receipts and expenditure, is audited. That is laid on the table of the House as a parliamentary paper duly audited, but there are no requirements to entail the tables accompanying the Financial Statement being audited. 25. Under the post-audit system the statements accompanying the Financial Statement will not necessarily all be audited accounts ?—They are not now, with that one exception. It would be just the same as at present. The abstract of receipts and expenditure for the year will be sent to the Audit Office for examination and be audited as heretofore 26. Under the pre-audit system ?_Yes. Section 80 reads, " (1 ) The Treasury shall, within ourteen days after the end of each finacnial quarter except the last, and within thirty days after the end of the last financial quarter, in the financial year, prepare and send to the Audit Office an abstract of the revenue and expenditure of the Public Account, as provided by this Act, during ?°^ q n a i ; and shal also witllin thirt y da y s after the end of each financial year send to the Audit Office a similar abstract of the revenue and expenditure of the Public Account during that year (2.) Every such abstract shall be certified by the Audit Office and returned to the Treasury withm fourteen days after the receipt thereof from the Treasury as aforesaid, and the Treasury shall forthwith publish the same, certified as aforesaid, in the Gazette, ana lay the same before ensulngTession theTeoL" ** "****' ** after the co ™~t of the next 27 Do I understand that under post-audit or pre-audit the statements of account would be much the same m respect of audit ?-Mueh the same. This system is very simple tW ♦», k * the .i tems^ oul d appear in the accounts but would not be audited?— Yes, that is so : the voucher would not be audited. 29 I suppose it would be audited before the Financial Statement is produced?—No not necessarily before the Financial Statement is produced pouuceu. mo, not 31' S) Z UId S/ he r a " di te d? - As n SOO \ a 8 , the recei P ted voucher is returned to the Treasury 31 night lion Sir J Q Ward.] Does the fact of a payment being made on the 31st March audited' Softer f- Public Vcounts-dols the fact ofit not beg audited until after the 31st March render the check of the Audit Department upon that account any less effective than if it came in prior to the 31st March ?_lt depends upon whether the voucher was correct in respect of which the cheque was issued on the 31st March. The audttrf the voucher does not take place till after the 31st March under the post-audit system t / a JVWat.™" made on the 31st March under the pre-audit system the Audit De partment would authorize the payment of that cheque, and later, if t was found there was a mistake in that account, that would have to be discovered quite irrespective of pre audrtT-Yes Commtnwaltf ™ M ***"* y ° U read fr ° m ° ne ° f the Australian States ?-Yes, the 35. Was that put in with your evidence? Yes.

Tuesday, 20th September, 1910. James Kemmis Warburton examined (No 4 ) Until ™% * ™™ you held the position of Controller and Auditor--2 And you are now retired ?—Yes, on pension