H.—l4

6

Instances have come under notice where this practice has not been fully given effect to. The result of the failure to observe this regulation is that changes and promotions occasion temporary inconvenience and loss of efficiency to the Department concerned. From the point of view of junior officers the practice is distinctly advantageous, as it facilitates the application of the principle of " promotion from within." It is sometimes suggested that progression is dependent on the occasional infusion of new blood and new ideas from outside the Service, on the assumption that cadets who graduate through a stereotyped official channel tend to have a restricted outlook. This should not be so when one considers the many educational facilities now afforded, as well as the opportunities that exist to gain experience as the result of the varied nature of State enterprise under present-day conditions. Controlling officers are urged to keep up to date with modern methods, and to realize that on the improved efficiency of juniors depends the ultimate efficiency of the Service. The greatest usefulness to a Department results from the training of a junior not only in his immediate duties, but also in enabling him to obtain a wider perspective of the organization of the Department as a whole by instructing him in the relation of his own functions to that of the Department generally. Co-ordination of Departments. The principle underlying the Public Service Act is that in the matter of personnel departmental barriers have little significance. Each Department is regarded merely as an integral part of a whole Service, and officers are transferable from one Department to another as opportunity for advancement offers, or to enable an officer whose qualifications may be more suited to one Department than to another to be placed where he can be utilized to most advantage. The application of this principle makes for closer co-ordination between Departments, as the information gained by competent officers who have had experience in other Departments should result in a better understanding of the relationship of one Department to another. The ideal should be the subordination of the Department's aims as a distinct unit to the general welfare of the State administration as a whole. It is pleasing to record that in many Departments officers already have this higher conception of their functions, and several interesting examples have come under notice. Departmental Accounts. The control of departmental accounts, though, primarily one of concern for Treasury and Audit, is nevertheless linked up with, staff control from the point of view of efficiency. Close co-ordination in this matter has been established with Treasury, Audit, and this office, and much good is resulting therefrom. Treasury inspection of departmental accounts has been more active than has been the case for some time. Greater co-ordination between Audit and. departmental Inspectors has been established with the approval of the Controller and Auditor-General. The possible further extension of this principle so as to secure a maximum of efficiency in the scrutiny of financial transactions is receiving careful attention. A new provision lias been made in the current grading-list that Audit officers will be required to qualify as professional accountants to secure promotion to the senior grades. District Treasury Offices and local Audit Examiners are now established in the four main centres in order to facilitate prompt settlement of local accounts. Various loan activities previously conducted under several Departments are now absorbed in the State Advances Department. A slight legislative amendment is yet required to completely adjust repatriation loan work. The compilation by Departments of annual accounts and balance-sheets for publication is being steadily improved. The inauguration of this reform, has stressed the necessity for officers holding the positions of accountants being qualified by examination. The reflection of departmental activities from the point of view of finance is revealed only by properly constructed accounts, and proper organization must go hand-in-hand with expansion of activities. There is always a danger of accounts —Government or otherwise —being framed so as to conceal rather than reveal cost of administration, and this aspect must be carefully guarded against.