B.—l [Pt. ll].

STATEMENT OF IRREGULARITIES IN CONNECTION WITH PUBLIC MONEYS AND STORES —continued.

From the foregoing statement which I am required to present in terms of section 89 (2) (c) of the Public Revenues Act, 1926, it will be seen that a very satisfactory feature of the accounts under review is the diminution in the number of cases of misappropriations by officers of the Public Service. Nine cases of irregularities involving the theft of public moneys and stores by Government officials came under the notice of the Audit Office during the year, and it is satisfactory to know that the losses in these cases were not attributable to any deficiencies in the regulations and instructions governing accounting procedure. The largest sum embezzled in any one case was £390 Bs. Bd., which amount was misappropriated by an officer who controlled an Accounts Section in the Public Trust Office in Wellington. This fraud was perpetrated by the aid of forgery, and an investigation of the case revealed that the accounting methods are satisfactory. The Supreme Court sentenced the offender to reformative detention for a period of two years. It is anticipated that portion of the moneys will be recovered. An officer of the Post and Telegraph Department stationed at the High Street Post-office, Christchurch, appeared before the Magistrate's Court for failure to account for registration levies amounting to £101. He was admitted to probation for two years on condition that he made restitution within fourteen days. In addition to the irregularities in which departmental officers were involved, numerous thefts were committed by persons other than departmental officers. An unsatisfactory feature is the large increase in the number of cases .in which moneys have been obtained from the Employment Promotion Fund by means of false pretences. In the course of the year, 1,961 such cases were reported in connection with which moneys totalling £11,267 ss. 4d. had been paid from the Fund. The Department has effected considerable improvement in the direction of increasing the staff of inspecting officers whose duties are to satisfy themselves by appropriate means of the correctness and of the propriety of the transactions embodied in the accounts.

iii—B 1 [Pt. ll.]

xvii

Nature of Irregularity. involved. | Action taken, and Result. Railways Department—continued. IRREGULARITY BY PERSON NOT A DEPARTMENTAL OFFICER. Forgery of receipt for wages • • • • I 1 Police inquiries unsuccessful. Amount restored, toy pay clerk concerned. Stamp Duties Department. IRREGULARITY BY DEPARTMENTAL OFFICER. Misappropriation of departmental moneys .. 2 4 7 Offender discharged without conviction. Restitution made.