SPENDING CHECK

Hokitika Guardian, 20 December 1933, Page 8

SPENDING CHECK

N.Z. PARLIAMENT’S CONTROL

NO EVIDENCE , OF WEAKENING

WELLINGTON, December 17.

A denial of the Auditor-General’s claim that Parliamentary control of expenditure is weakening is made by the Treasury in a statement submitted to the Tublic Committee in reply j to his charges. . The Auditor-General, in his report, mentioned two specific 'cases where legislation had recently been enacted, giving powers of expenditure to Ministers of the Crown. These cases were* examined by the Treasury, which claimed that one did not involve expenditure but merely an equitable adjustment between accounts, while the other was only a matter of internal management of a debt. “Balance-sheets, are required by Statute and steady progress is t>eing made in eliminating duplication ana co-ordinating these accounts with cash arvounts,” said the Treasury statement. “The balance-sheets are subject to audit. All expenditure, however, must be authorised by Parliament in one form or another, and passes through the cash accounts, subject to check at every step by audit. Far from weakening Parliamentary control of expenditure, the balance-sheets and accompanying profit and loss accounts must strengthen it, for the real position of each activity i s thereby disclosed and t’he House is able to judge the administration vote. “MORE INTELLIGENT PICTURE.”

“Expenditure in itself, even in com-" parison with the previous year, gives lib indication as to the financial posi-j tion of any department. Every voucher passes through the Audit Office, and, is checked against its correct appropria*! tion, but Parliamentary control of ex- j pendibure does not require a mass of detail, that can be better dealt with in ' balance-sheets and revenue accounts, I to be duplicated in the abstract of cash accounts, where a move intelligent pic- 1 Lire of the financial position as a '"hole can be presented by summarising the expenditure. j “The Treasury agreed that, in prio-j ciple, uniformity and continuity in the form of the Public Accounts was desirable, but the principle should not be

carried to such lengths as to prevent desirable reforms. As a matter of fact, in recent yeans, a great deal-had been done in the matter of suitably grouping revenue and expenditure and generally rendering the accounts simpler and more easily understood by the public. The .abolition of a great many permanent appropriations wars a reform that was strongly advocated by the AuditorGeneral himself. REDUCTIONS IN PENSIONS. “The Auditor-General’s complaint

that old age, widows’, miners’, and South African War pensions had been reduced sooner than the, legislation allowed was described by the Treasury as a technicality. The matter had been referred to the Prime Minister, who had decided that legislation was not necessary and consequently no further action had been taken.

. Referring to the statement of irregularities occurring in the High Commissioner’s Office, the Treasury said it would appear, 'from, the entry that defalcations were made by members of the High Commissioner’s staff. This wag not 'altogether correct for one of the two men concerned, was an audit officer who was on the staff'of the Controller and Auditor-General. The fraud s were only possible owing to the false certificates signed by this officer.