31

H.—l9

APPENDIX F. QII ARTERM A STER-GENERAL'S BRANCH. NOTES FOR THE INFORMATION AND GUIDANCE OF A.Q.M.G.s AT HEADQUARTERS AND DISTRICT HEADQUARTERS, AND ALL OFFICERS AND N.C.O.s OF THE NEW ZEALAND STAFF CORPS AND PERMANENT STAFF. 1. Appropriation. The estimates annually passed by Parliament include Class X, generally known as the Defence vote. This amount is placed at, the disposal of the Defence Department, supplies being drawn upon the Treasury as required. 2. Administration. Under the proposals by the Inspector-General, Overseas Forces, the general administration is to be under the band of the Quartermaster-General at Headquarters, with decentralization into the four districts under the A.Q.M.G.s of each, as per schedule of duties attached. The intention is to relieve the Commander and General Staff from administrative duties. It follows, however, that the General Staff and the Q.M.G. or A.Q.M.G. must be often in close conference as to expenditure. The Commander of a district and General Staff cannot be altogether absolved from a general share of responsibility in the administration, although they are relieved from actual responsibility of carrying out of details once they have settled the policy. Commanders of Territorial units are still responsible for the administration of their unit as regards all equipment on issue, expenditure, accounts, and for maintenance grants, &c. 3. Accounting. Under any system it is absolutely essential that the expenditure on any item can be given at any time required. Items such as railway charges, transport, hire of horses, motors, tournaments, &c, must be charged to the service incurring the cost. It Would be inconceivable in a business firm that the chief could net at once be informed of the cost of any store, article of commerce, or service in his business, to enable him to effect economy or detect leakages, and it is quite apparent if this is not done true economy cannot be obtained. This does not mean it will be necessary to add to the details shown on the estimates for the year ; on the contrary, it will reduce them to totals and will enable returns of all expenditure to be prepared expeditiously. By this means the accounting of the Department will be such that the position of any item may be readily ascertained with a minimum of clerical labour, and leakages or excessive expenditure detected in time to make adjustments. 4. Vouchers. The above involves a thorough knowledge of vouchers. As Treasury Regulations direct that all payments be made by properly certified voucher, this must be strictly adhered to. All bills or subvouchers attached to a voucher must be initialled by the official who actually incurred the expenditure. Should money bo paid out of pocket a receipt must be obtained. (For sums of ss. and under for travelling no receipt is necessary.) Authority must be quoted in margin of voucher, such as " Financial Regulations," " General Regulations," " Circular," " Approved requisition," &c. In cases of absolutely unforeseen expenditure, no authority being available, a full explanatory memorandum must be attached to the voucher with a view to assisting its passage through audit. Vouchers must be thoroughly inspected by the certifying officer, and each item must be checked by District, Accountants before local payment, or forwarding to Headquarters for payment; in fact, they must be pre-audited by those officers, and in cases of local, purchase of stores to be certified by A.Q.M.G. or District Storekeeper that such stores have been taken on charge by the unit, &c, for which they Were purchased. Where at all possible, travelling and allowance vouchers to include a month's travelling (not put in for every small amount). Also, small petty amounts might well be included on one voucher, showing authority against each, a cheque drawn for the total and paid in cash, receipts being obtained and attached to account for total of voucher. All small items might be so disposed of monthly. The aim in each district must be to keep the number of vouchers at a very minimum. 5. Authority. The whole control of the expenditure of the Defence vote rests on the ability to quote authority. No officer should certify a voucher until the authority is shown on the margin. It is almost a daily occurrence to have an officer or N.C.O. of the New Zealand Staff Corps and Permanent Staff, as well as Territorial units, resenting the turning-down of payments where no authority can be quoted. In many cases purchases or commitments have been actually made without reference to any one just before some exercise or camp, the bills and voucher sent in some time afterwards, giving as a reason that the articles were necessary. Often these articles are not even on the equipment list. Headquarters least of all has any desire to refuse necessary expenditure, but it must be recognized throughout the service that if every O.C. Unit, Area or Sub-area Officer, Adjutant, N.C.0., &c, Were to act as above, administration to the best advantage becomes impossible. To obviate this it will be necessary to revise the equipment lists for the New Zealand Military Forces; but even then requisition must first be made before any officer or unit resorts to purchase on its own account.