DEFENCE AUDIT

Dominion, Volume 11, Issue 270, 3 August 1918, Page 3

DEFENCE AUDIT

OHXIOX OF CCOIMISSIOXKS.

Favourable opinions are expressed by the Defence .Kxpeiuhtnvo ConiiiiissioneH on the audit ot DeK'ittu iictountt-. Tlii'.v uniko the following remarks on it:— "Tliu audit is strict, but is not resented by the Defence Department. In point of fact, in answer to cleat speciiio ijucstions we learned that the Minister 01 .Defence has uovei; objected to tlm Auditor challenging; items, but lias on dcvcrnl occasions thanked him for directiiii," his attention to lnattew of expenditure. The Auditor-Geiiiral says: 'To soino officers uu audit query is like a red rag to a bull; and it has actually been set up that professional men should not be subjected to such indignity as to be aoketf for an explanation as to their dealing with matters of expenditure.' "The audit found that generally accounts ave paid without delay, and that all discounts possible are thus obtained. "We are fortunate that two important witnesses, the Auditor-Ueneral and tlio Secretary to the Treasury, in addition to being distinguished and experienced pul> lie servants, are also colonels in the military forces, and we have quoted libnrnlly from tlieh , valuable evidence. Both were able to give the most satisfactory aesuranis that no case of fraud in Defence expenditure had coino under their notice. "Accounts paid in tho districts are audited in due course on arrival in Wellington; but experts agree that it would be better to have a representative of the Government Auditor in each district to pre-audit and prst-audit accounts, thus improving tlio present system of signing vouchers by the officer commanding a district, or the Assistant QuartermasterGeneral, which tends to become perfunctory, and is therefore of little value. ' Audit at present has nothing to do with seeing that public moneys aro economically expended. All it has to see to is that they are expended in accordance with -tatutory authority, and that proper receipts are obtained. Preaudit would innrove this. "The cost of audit of the Defence Department's transactions for last year was JCGB7O (maximum), and the expenditure lias been in all JC39,1<!7,8C0. The cost, therefore, ha" been about Is. per cent."