THE FINANCIAL YEAR.

Hauraki Plains Gazette, Volume XXXVIII, Issue 5132, 30 May 1927, Page 2

THE FINANCIAL YEAR.

MATAMATA SUGGESTS CHANGE. OHINEMURI NOT FAVOURABLE.'’ At the last meeting of the Ohinemuri County Council the question of an amendment to the Counties Act to provide for. ending the financial yeai on June 30 instead of March 31 was brought forward by the Matamata County Council in a circular, which stated :— “The present date is unsatisfactory for several reasons. It is open to objection from the fact that the annual accounts closed on that day do not really reflect the year’s operations. Frequently, owing to weather conditions, road construction works are not under way until December, and are continued until April or May. Also, where the Government eontr.L butes towards, woiks the authority for expenditure is often not available foi an earlier commencement. As a result all works are in full swing during February and March, and very few commenced during one financial year, are finished until the succeeding financial year. It therefore follows that any statements or accounts covering the financial year are not a record of the season’s operations; in fact, it is usually possible to include works up to February 28 only, as works for the month of Marell are not paid for until April. “It may generally be assumed that by June the previous year’s programme is completed, and construction, and probably maintenance work, is suspended. A survey of. the past period, and arrangements, financial and otherwise, for the next year, can be conveniently made, especially in view of the fact that the staff has then more opportunity for giving considered attention to such matters. “It is, therefore-, considered that the season’s working and financial year should be co-terminous. “I think it is a fact that dairy companies close their financial year in May or June for considerations similar to those a.bove stated, and the tendency, where the financial year is not defined by statute, appears to be in favour of some date later th.an March 31. “The law governing counties ini this connection is apparently derived from the custom obtaining in England, and is probably convenient in European countries, but there appears to be no reason why the custom shoultl be followed in New Zealand, where the suitable season for. road construction and similar work is at a different time of the year. “Considering the question from this point of view, it would appear that September 30' should be the close of the financial year in this country, but this would probably have the effect of unduly postponing preparations for the approaching summer, which should by this date be well advanced, if not completed. On the whole, it therefore appears that June 30, in the middle of what may be termed the slack season, is the better date. “I shall be obliged if you will convey to me your, council’s views on the subject, as this council proposes to frame a remit thereon for consideration at the next Counties’ Conference- and desires some indication of the support likely to be afforded to its proposal. In particular, I would like to be informed on the following points : Is jour council satisfied with the existing provision contained in the Counties Act relating to the financial year, or is it of opinion that an alteration should be made ? If a change is considered desirable, would your council favour. June 30. or what other day would it consider more suitable? Will your council support a remit to the Counties’ Conference on the lines above indicated ?” In reply to the chairman (Mr H. M. Corbett) the clerk said that in his opinion the present position was very much better. The Government departments all closed at the same-time of the year, and any measure proposed to alter the date would probably be opposed by the Government. The change- might be suitable; to some local bodies, but he thought it could not apply to counties. So far as he was concerned he was not prepared to recommend any alteration.

Cr. F. C. Hubbard said he thought the suggested alteration had certain advantages frpm an immediate point of view, but he considered that it was far more satisfactory to conform to tlie Government departments. Cr. W. F. Johnstone moved that the Matamata County Council be advised that the Ohinemuri County Council saw no reason for making any alteration in the date of the closing of the

financial year. Seconded by Cr. R. R. Morrison and carried.