MUNICIPAL TRADING.

Dominion, Volume 7, Issue 1882, 16 October 1913, Page 7

MUNICIPAL TRADING.

LFCTURE TO ACCOUNTANTS.

A lecture of interest was givon by Mr. John S. Barton, F.R.A., to members of the Wellington branch of the Now Zealand .Society of Accountants last evening. Tho subject was "Municipal Accounts and Finanoe." Mr. C. L. Hawson presided. The speaker doalt with municipal trading and the municipalisation of public utilities; Ho stated that, with the increasing tendency .of municipal bodies to enter into trading ventures, tho very important matter of accurately figuring out the result attained was of great importance. He pointed out that although local bodies wore called lipon by Act of Parliament to submit their accounts in tho form'of cash statements, this '< method did not indicate tho complete result of such municipal trading. Ho referred in particular to the experience of the Nelson, borough gasworks. In this caso ratepayers were astounded when accounts drawn on the proper principles of accountancy were submitted to them showing a substantial profit, whereas by'the cash statement prepared in accordance, with law an ovordraft had been disclosed. The explanation was that a considerable amount had been expended in capital expenditure which, although reducing the bank balanco, had not detrimentally affected the profits of tho undertaking. The speaker commondod the system of accounts by tho Wellington City Corporation in connection with its electrio lighting and tramway schemes, and strongly expressed tho opinion that all local bodies embarking in trading should model their accounts in a manner that would give the ratepayers the complete financiaj results of tho venture, and stated that these accounts should bo audited independently of tho Government Audit Office.

At the conclusion of the address there was an interesting discussion, and tho lecturer answered a number, of questions. Mr. Barton was accorded a unanimous vote of thanks, on the motion of Mr. Saxton.