THEFTS INCREASE

Hokitika Guardian, 27 September 1932, Page 2

THEFTS INCREASE

AMONG LOCAL BODY OFFICIALS.

AUDIT DEPARTMENT’S PART.

(Per Press Association — Copyright.)

WELLINGTON,. September 26.

The increasing number of defalcations by the officials of local bodies was -the subject Of a relink passed fat tlie rec§nt conference of .the New Zealand Counties Association. The remit mentioned that there was an' apparent failure, on the part of . Audit) Depaftme&ttlftfficials to detect various niis-appi-apriations in the early stagps, local bodies incurring a subsequent loss through an inability to recover from the insurance companies within twelve months..

In a reply received by-the Asociation, the Audit and Controller-Gen-eral says“ The Audit Office is; of the opinion that the period generally covered by the fidelity policy is insufficient in view of the fact that in many instances the accounts are unready for complete audit until some considerable time after the period lias expired. It is suggested that the cover be extended to defalcations discovered within two years or eighteen months from the time of commission. The lettel also mentions that delays in Übe audit frequently. occur through the dilatoriness of some clerks. \ The letter states that the remit was moved by the Maniototo County Council) ■ and draws atention to the fact that the Audit Inspector had advised the chairman on two occasions that the accounts were not, kept- up-to-date. It was frequently ascertained that the Chairman had. failed to inform the Council of the Clerk’s failure to keep the accounts up-to-date.