Local Bodies Accounts.

Manawatu Herald, 3 October 1896, Page 2

Local Bodies Accounts.

We bave been surprised at Ho coinnrenfc having been made on tbo remarks of the Chief Justice at Waoganui a few days ago, when he expressed himself co strongly on the dudes of members of local bodies. The remarks were made at the conclusion of the trial for fraudulent conversion of County monies and were reported as follows : — " He commented adversely on the careless manner in which public bodies allowed their officers to cash cheques instead of paying them into the account of the Road Board or Council. By their lax and improper practice they encouraged people to commit offences, and they should be in the dock with the prisoner." Tha sounds particularly hard, and we beg to submit, unjust, to members of local bodies, who give their time for the public advancement, free gratis. It is nothing strange for the majority of members to know very little about the financial position of . their Boari, beyond the amount of credit or overdraft at the bank. The chairman probably knows more, but units* bo gets a reasonable wmvmim it )9 gtf tp

be expected he can, or will, give the tiode to thoroughly understand the iteniß of the accounts sufficiently to be able to detect any careful maladministration of the funds by either the clerk or. treasurer. The Boards appoiot officers whose fidelity is guaranteed at a sum determined by the local body prior to appointment, and it is thus more the duty of the guarantors than any member of the lo<Jal body to see that be acts straight. In addition to this the Government sends an 1 auditor twice a year to examine and certify to the correctness of the accounts, so that, except in few instances, the amount of any defalcation is not likely to be as utiuch as the sum guaranteed, and even if it were, it is next to impossible for any one not a professional accountant, to detect it. It certainly does not add to the pleasures of being a member of a local body to learn that the Chief Justice looks upon members, whose clerk has aoted dishonestly, as being as bad aa the clerk. The Act provides that certain things shall be done by a clerk* amongst which, that his receipts shall be banked at such times as the Council may direct. In some cases the local body's office may be situated where there is no branch of a bank, or where it is only opened once a week, which makes the position of the clerk, and by the Chief Justice's reasoning, the members, more em--1 barras nag, a3 if the clerk should in all cases bank the cheques he receives, he would not be in a position to give change, and he would thus make the business of rate collecting more inconvenient both to himself and the ratepayers. When men have plenty of money everything j. can be ordered as it should be, but many small settlers call at the looal body's office with a cheque just received from their employer, or from proceeds of a sale, and pay their rates with it and get change. This is the way that some cheques \ paid for rates get astray, but it secures other rates being collected. The statement made by the Ohinf Justice appears to U3 to ba both harsh and unfair and exhibits a laok of knowledge of the conduct of local bodies. Our experience of members of these bbdies proves that they are most anxious to Bee that the ac- | counts are kept right, and do what they can to obtain that result, bnt they are not capable, from laok of necessary training and time, to satisfactorily check any accountant who has made up his mind to go wrong. We also do not think the Act ever expected them to have this responsibility placed upon them, as it so carefully provides for tbe Board to " take sufficient security " and for an audit of tbe accounts twice a year by an Auditor appointed by the Governor.