Manawatu Road Board.

Manawatu Standard, Volume X, Issue 63, 13 August 1885, Page 4

Manawatu Road Board.

YESTERDAY. (Continuation of Report.) The Chairman remarked m reference to a statement made by the Secretary at . the last meeting viz, " that he was not sure about the patioulars of his engagement as to termination," that he (the Chairman) believed that their late Secretary was almont justified m stating ho could not remember these paticulars ; as the rosoladqn engaging him was passed a« far back as February 1878, whon applicAiioos were received from Messrs C. Roe, T. S. Hoe, B. Warbnrton, and H. T. Alcor». Against Mr lloe'a name the word accepted appeared, an<l this was the only minute affecting the appointment that could be found. (At this juncture the safe of the Road Board arrived, and the members spent some time m receiving, and examining the coutents). It was resolved on resuming the business, to destroy a certain prontisory note for £325,' Bigned by the Board as security to the Bank for overdraft. The inventory of books, etc., found m the safe was then read by the Chairman ; . also tho .following reports from the 0 Audit pffice :-^- --\ Provincial District Andit Office, Welling- . . ton, 14th February, 1884. ; Report of the .Provincial District Auditor on^the accounts of the Manawatu Road Board; : The Provincial District Auditor has the honor to submit the following report on the accounts of the Mauawatu Road Board for the year .. ended 31st March, 1881, 1882; and 1883, and to direct the attention of the BuarJ to the various communications made by this Department to the Treasurer during the past two years. When repeated endeavours were made to induce that officer to supply necessary particulars, and to make requisite alterations and correc- . tions to enable the. Auditor to certify to the amounts as correct. The requirenients of law v and of ..this Department have not been atUnued to by the Treasurer ; the Balance Sheets for.tko above mentioned periods cannot therefore be passed as correct. It is to be regretted that the accounts and vouchers have not been supplied m such a manner as would have enabled a, complete audit of them to be made. ; • The ( following list of inaccuracies; 011)18810(18, &c, appear iv the accounts - aud vouchers of the reapective years. YKAE ENDED 31ST MAAOH, 1881 Incomplete TO'uctiisrV :— Guerron, £20 ; Bulst, £24; Buchanan, £70. Fuller particulars of the charge required to eni able the vouehei§ to be checked and passed. Scanlan, £39 19a Od,J receipt .unstamped. Nannestad, £1 5s 2d, no receipt supplied. i Deposits on Contracts;— This account, is altogether unintelligible, ten payments representing £70 are without any vouchers m support of the chargeß made, and several disbursements do not appear to have corresponding amounts brought on charge previously. A inuoli larger amount appears to have been annually paid away than has been accounted for on tho receipt side of the books. The sums received and -pUid on this account during the past four years are stated m the Balance Sheets to bo as follows :— Year ended 1880, received paid £182 ; year ended 1881, received £30, paid £126 ;' year ended 1882, received £48, paid £37 ; year ended 1883, receir•d i' 34, paid £39 ; total .received £268, total paid ;6384> No eJtplauatibn of flic difference has been supplied.. Salaries , ana 1 ' maintenance :— ;Tliree vouchers payable r'to T. S. Hob f«r £17 18s ? 0d, £3ff 5s- 0J v and £18 5a 6d are '■wantin^-^rtjs'^ot'-uiideistood'hOw'the-Treasurer's salary is. computed here, or at what rate^per annum he is paid, the requisite particulars uot appearing' ou . the docuraeuts submitted to the Aud i tor. Travelling Expenses :— Vouchers for £28 7« only are supplied. This sum duly appear* m the Balance Sheet. It is hot understood how the account m detail furnished the Anditor, £59 7s is arrived at. ' JBTB ENDED 318T MARCH, 1882. . I' Queries and observations" on tlirse iiucountß were forwaiJed to the Treasurer on the. 29th August, 1882, with a request that explanations should be Supplied where required, and that necessary alterations »nd corrections should be mad* m the vouchers as indicated m 'the "Queries and Observations" enclosed herewith). The latter documents were returned by the Treasnver with paatial explanations, but little has been idono to meet the requirements of the 'Auditor regarding the various matters alluded to. items still* requite attention jn this years accounts : •— T. S., Hoe's salary £70 per "annum. It is f ouod on txaminatiou of tho twelve monthly vouchers for .payment on this aooount tbat £83 16s 5d wa» paid for *6hi ydar'fl saUry- is follows :— -March 15 to April 13, one month's salary, £6 Ob 6d ; April 13 to May 18, one month's salary, 3s7d; May 18 to June 15, one mouth's salary, £5 16s 8d ; June 18 to July 31, one month's salary, £8 15s ; July 20 to August 31, one month's •alary, £8 10s 6d ; Augustl7^t6 September 30^ one month's fsaiaf>i^B|ißsi2d ; September 21 to October 30, one month's safiry,£7 18s lid; October 19 to November 23, one month's salary. £7 3s 7d ; Dacembor 1 to December 31, one mouth's salary, £6 6s ; January Ito Janu ary 3i,:pne,inontl}'s salary, £6 8a 2d ; February 'l to Fabrugry 28, bnp month's salary, £5 7s 8d ; FbbruafV 15 to March 15, one month's salary, £5 7a 8d j total £83 16 od, or £13 16s 5d iv excess of the proper amount, " : .Tnis i oyeFoharge . appears ; to have -itf«en ;;: cftUße'd through ' miscalculktions and th* iinprb'per overghigpihg of several days m many of the monthly payments. Tho Treasurer was .requestod to refund the overcharce, which he promised m a telegram to the Auditor on ' 23rd December, 1882 to do, jviz^**" Amount overpaid for salaries will be refund«d as requested to the "Bauk.", Examination of the then current y«ars accounts shews, that not only has this overpayment hot been refunded but also that the practice of drawing an excess of salary has been perpetuated by the. Treasurer during: the past year. Amendments of Vouchers : —The declines to get several vouchert for* considerable sums paid to hirng«lf, oijtsiiU.q'f ; his salary, certified to by the ohajrraan, on the grounds that '* the chairman csrjnot i>ow sign owing to the old Board being extinct .and a new one being formed," This explanation is considered to be lame and untenable. Withone'or two exceptions no vpuuhers have been signed by the chairman since lit January ."lßß3 ; prior to this date the omission was Occasional only. Deposits *; on Contracts :— Remarks iflhnilar to those made m respect of the acuoqats ft^ tljnyear ended 31st March 1881 also apply fcp tl)« yea> now under' consideration, | Unstamped, and improperly stamped Vouoliefs :V-Np,thinaf has been done by the Treasurer m rospoct of the 41 documents referred to iv the " Q.ieries and Observations" as h.iivinjr. been returned for correction. The Treasurer utates " thestamps were overlooked until tlia vouchers were Weing prepared for audit." This explanation U contidoi'od to be unsatisfaulory. 1 Accounts jontlered : — The auvlifc directidns that accounts m detail should m evory case bo attacheil to the yoncliors have not btien fully attended to, one account, Hawkins, Solicitor, bill of costs, £25 0i 8J behig still missinj. Paytnents on account of contracts :— The full particulars a3ked for have not

been supplied, vouchers cannot therefore be certified to as correct. Unreceipted payment : — The signature of J. Paul to a voucher £13 10s 6d has not been obtained as requested. The docament is consequently of no value as a receipt for payment. Payments unsupported by voucher : — August 18, Bourke, £1 8s 6cl ; June 27, I<'eilJihg Gii., 18s; February 15, Voss,' £3 I&C6d; March 15, Skinner, £3; March 15, Wiggin, £30 ; July 18, Laing (Department), £2 ; March 15, Perry, £20 ; July 18, Hansen, £2 ; June 27, * Pox toil Board, £381 17s lid; June 2,7,., Foxton Board, £33 Is 8d ; total, £478 4a 7d. Discrepency : — A disbursement m the cash account 29 Juiy Franklyn £25 6s 8d is supported by voucher £26 6s 8d the excess of £1 is stated to be~" deposit on contract," but the deposit cannot be-j traced m the cash accounts. This is another instance of the irregular manner m which the " deposit account has been kept.' YEAR ENDED 31ST MAJtCH 1883. Payments on account of contracts :— Several vouchers are without the particulars required to enable the amoants to be checked. The directions issued by the Auditor duringthe past year respecting payments of this descriptions have not been attended to. It is quite needless to endeavour to check contract payments unless the full particulars asked for are m every case supplied. Deposits on contracts : — Remarks similar to those made in' respect of tho accounts for the year 1881 also apply to the year now under consideration. Payments unsupported-by Touchers :-~ July 19, Anderson, .'£ls; August 3, Smith, £35; July 19, McColl, £20; March 14, Monk, £3 ; July 19, Cavanagh, £100; March 24, Parr, £4; July 19, Bengan, £20 ; March 24, Parr, £1 ; May 31, Bulst, £3 3 ; February 21, Manawatu Times, £2 19a 3d ; March 14, Charles, £5 ; total, £209 2s 3d. In the Balance Sheet there is an item on 31st March " cash m hand Charles deposit £o." If thelatter sum represents the unreceipted payment to Charles explanation is requested as to how the amount came to be withdrawn from the Bank and placed m the Treasurer's hands, and under what circumstances the sum can be considured as portion of the balance of the Board's account «n the 31st March 1883, (see Balance Sheet for this year showing, " balance cash m hand Charles deposit £s}"5 } " which amount, it is presumed is also intended m the expenditure for the year.) T. S. Hoe's Salary : — Notwithstanding the representations by this Department' respecting the improper treatment of thjsl 1 item of expenditure during previous, years, it is f ohnd,', upon ".examination of the amounts, that the errors pointed out have not been rectified, and that the irr regular system which previously obtained was continued up to October 1882, varioufe payments, all m excess of the proper monthly salary having been made to that date, as follows :— March 15 to April 30, one month and 16 days salary, £9 Us 4d ; excess, 16s 4d ; March 15 to May 31, one months salary, £6 8s 2d ; excess, Us 6d ; March 15 to June 30, one months salary, £6 4s 4d ; excess, 7s 8d ; March 15 to June 81, one months salary, £6 8» 2d t excess, lls 6d ; March 15 to September 30, two months salary, £12 16s 4d ; excess, £1 3s \ March 15 to November 30, two months salary, £11 J3s 4d ; March 15 to December 31, one months salary, £5 16s 8d ; March 15 to January 81, one months salary, £o 10s 8d ; March 19 to February 28, "one months salary, £5 16s 8d ; March 15 to March 31, one months salary, £5 16s 8d ; sum actually paid as salary, £76 8s 4d ; less payments m excess, £3 10.9 ; correct amount for 15 March 1882 to 31st March 1883, £72 18s 4d. It is requested that this payment m excess £3 10s 6d, together with the over 'charge during the year ended . 31st March 1882, £13 16s 5d be at once recovered, and the total sum £17 6s 5d be placed to credit of the Board's account at the Bank at the same time a duplicate Bank lodgment slip for the amount should be forwarded to this ofhee. Owing to the foregoing errors and irregularities, the Auditor is unable to pass any of the accounts for the three years now under review. * It will be observed that the Auditors inability to certify to [ the Balance Sheets is the result of systematic negligence on the part of the .Treasurer to the Board as well as unwillingness by that officer to.meet the re- . asonable requirements of the Auditor laid down by law. ; . . R. Macalister, Provincial District Auditor. Report by the Provincial District Auditor on the acounts of the Manawatu Road Board : — Provincial District, Audit Office, Wei- ■ lington, 7th July, 1885. In returning the balance sheets of the Manawatu Road . Board ; for the year ended 31st' March, 1885. The Provincial District Auditor has the honor to remind the Chairman of the Board that for several years past, owing to errors and irregularities which have been pointed out from time to time as they came under observation, the Auditor has- been unable to certify the accounts of this Iqcaj governing body. Queries and observations on these accounts dated so far back as the 29th August, 1882, were forwarded to the Treasure!', and answers orexplanations to the various matters referred to were requested. With one or two unimportant exceptions nothing has 'been done to meet .the requirements of jaw m respect to the matters ,referred to m these queries and observations. On the 14th February, 1884, a full report shewing the state of the Board's finances and the manner m which the Treasurer's duties were performed "go far as matters relative to accounts were concerned was fof warded, to. the Chairman with a request that steps. should at once bs instituted, to have the various matters ■? towhich exception was taken rectified, but. no attention appears to have been paid to the communication, and the Auditor was surprised to learn that ting repovt was suppressed and that therefore the ratepayers of the district had no knowledgei of its existence. They were thus deprived of the privilege accorded t» them by law of taking such action as to them might seem to be desirable for checking and preventing the recurrence of such irregularities. During the morth of October, 1884, the Provincial District Auditor made a personal inspection of the office of the Board, when it was found that the accounts were m so. incomplete a state as to utterly preclude the possibility of any satisfactory audit being made. Early m January, 1885, upon tho assurance of the Chairman that the accounts had been duly written up, and that the ommissions and irregularities complained of had been rectified, the Provincial District Auditor directed an officer of this department to ftrqeed fco Pahnerston to examine and report upon the various matters referred to m llie audit reort of February 14th, 1884, and m other communications from this office also to check the various sources of revenue of the Board, &c. This officer reported that the accounts, especially the. ratebr».okg, were still m an unfinished state, and that ii xuiis quite ii'npossible tor him to determine wtjat Qimoim£ of rates had actually been collected, qi? whether rates aotiiilly collected had been aoounted for, Further queries wore accordingly addro3sod to the Treasurer, It is notud, however, that up to the present date very little .attention has boon paid by that oflicor fr> tho matters brought under his observation and pr-miisos made by him lrivo not been fulfilled. It is therefore considered desirable that tlie report of tho 1 4th ■ Fubrutirv, ISS4, al-rea-ly referred to, m which irregularities niir.4si->n*, ilirfcrup;iwie.-<, an 1 other- runt-. tora aw pjiutod out showing how im-

WREWERWER

at rear for previous years. Not one of the i-uu- books was. added up and amounts '.ioliectel were entered indiscriminately ■ n tho c. sh booe without any indication .isto w at years the rites belonged. In '••ivler 1" rnable any satisfactory/audit and examination of thoso books and .accounts to be made it would be necessary to write, up all the rate accounts for some yearsL past, as previously pointed out to the Board cure being taken to have each yeats receipts kept separate. Revenues collected were not m all cases paid m to the Board's account at the Bank as required by law but were retained by the Treasurer and used by that officer m payment of claims made against -the Board. ■It is scarcely necessary to poini out that •this infringement of law and unsy sterna tic metod of dealing with funds ot the Board is calculated to lead and did lead to serious complication of Accounts.. The Provincial District Auditor feels it incumbent on him to attain point.out these matters to .the Board Who \rill "how thoroughly understand the position of affairs and he' : f eels constrained to add tSat every endeavour has been used and,, ex-, hausted by this department to impress' upon the Treasurer the unsatisfactory state m which the public accounts of the District hive been. kept and that the'financial affairs ot the. Board generally ■■ are ' not conducted with that care and regularity which are essential to the proper conduct of public business. It may readily' be ' understood upont perusal 1 of audit reports and correspondence that' under the extraordinary circumstances stated it is quite impossible to certify the accounts of the Board as correct. Tliis report is to be taken and read m ; con- ; junction with the report of the 14th of February, 1885, and as forming part of the Balance-sheets for the year ended 31st March, 1885. B. Macalister, Pronvincial District Auditor. The first report, the Chairman stated had already been bsfoic the Board, the latter one had been received two d»iys alter their last meeting, previous to the Town Hall fire. Ho could assure the Board that he had taken a good J deal of trouble m overhauling the books containing the Boards accounts, and had gone iuto matters generally with the Secretary, and came to the conclusion that further than carelessness . on the part of the Secretary, he did not believe there was anything wrong m th- finances of the Bottid. As far as he (the Chairman kiit-w, their late Secretary was entirely blameless of any imputations cast upon his character by the Audit Department, or by other parties who had circulated certain damaging reports concerning him. Mr Armstrong stated Mat regarding the kl mentioned m one of the reports being overpaid on account of contract money, he might explain that this occurred through an oversight ou his part m taking a voucher for £35 instead of £28, and that the error was rectified at th<: time. Tin* . Chairman stated that MrCarleyof the Audit Ollice had shown them a very simple manner of keeping the accouuta and this style had been ndoptr.d instead of that directed by the Aunitor who took Mr Macalister's while the latter was m Envlahd. In reply to Warden Ak«rs the chairman stated that the amount of secretarx's salary overdrawn as stated m the audit report had been refunded m Aprij 1:) st. Regarding vouchers pot certified to by the Board 'h chairman, he believed that a oertain amount ot exoneration was due to the secretary, as tlm then chairman of the Board, Mr Bruce, had net taken the .requisite pains to see that such documents had the neces sary signature. lie the overpaid salary, the Clerk had made his claim and paid himself, compitting same nt the .rate of 31 days to (he-month, nnd this was how this trouble came about. Ho would also point out to the Board that they had authorised and caused to be transferred from the imprest account to tne general account au item of £100 which they had afterwards refunded. This matter the Audit Department m their report had not referred to at all. Also that the reason of the secretary paying claims against the Board out of cash on hand instead of by cheque wan readily explained as they would remember that their Batik had refused to allow them to further overdraw the account, and the secretary had merely done what th-y themselves considered was the bust thing under the oircumstances. Re the amount of £7 ; this was also satisfactorily explained. The amount had been paid by the En gineer on account of contract. money owinc to King niul Sclager ; each of the contractors had applied for the mon»y, one to tin 1 secretary and one to the Eneineor. The -letter had repaid the amount, but on the affair being, sat isf actt only explaincif to Mr Carley, the Audit Office Clerk, h«» was satisfied, and it. was decided to refund the sum to the. Engineer. The larger amp'ints referred to also were easily explained when the whole factH were stated. The sum of £636 spoken of was paid over to th« FoxtonSnndon Road Board m the adjustment of accounts when the separation of that Board took place with the Mnnawatu Road Board. No voucher had really been received for this amount, but it was certainly paid as the Hoard well knew, and the Bank bonk could show this, b«t according to the Auditor's report it would appear that the Cl«rk had mutilated the account. This would he sufficient explanation of this matter ha thoughtr When he had received the last report from the Audit Department, he had written m reply* and had also received a communication stating that Mr Carley would be m Palmerston on the Bth August and would gire any information required. Re the £5 mentioned m the report. This matter had been explained to the ; Audit Qfficer when he was inspecting; the accounts, and he. had accepted suci} explanation as satisfactory, viz., the amount had been paid by the Clerk into a wrong account. A good dea] of 'blame attached to the Board m not examining the accounts m past years. Vouchers had not been signed by the Chairman of the Board, and the blame had fallen on the Treasurer. The members of the Board were to blame as much as the Secretary for any irregularities that had been continuous as it was their duty to see that matters were kept straight. After some time had elapsed without any remarki from the "Wardens. Warden Matthieson remarked that it would appear th; Auditor evidently was not satisfied with the state of the Board's accounts, and he thought they shauld endeavor ta got a proper report and balanccersheet as soon as possible. Warden Sly said that no practical result could arise from a discussion of the matter now. One remark, however, m the report to the effect that the Secretary had not kept a correct account of rates received, incoming and past years not being distinguished. He hoped that wKqeyej; received tho appointment of Secretary would t\iko a fj;e.s.h departure and keep matters m a more correct way. He would propose that tho resignation of T. S. Hoe as Secretary to the Boaivl lie accepjted. '"' . ' Seconded by \yarden Pratt and car riod. Warden S.I.V prqp.qse.l that an advertisement ho inserted m tho newspapers fc-r a clerk, ai}.} lie \yoi}l<] surest that the duties of aijoh officer sh >i|M ha plainly defined by tin IJo.vl, his mason for suggosting this wnstb.it he hu.iata previous meeting of that Bo ml objocte.l to a payment of £.'3 Q.i to th i clerk :v-« a rehirn'ng o!lio'jr's foe. Also he le'iurrhoro:! that a smn of £10 had bee:i paid tor clerical assistance. Tho Chairman said he would second

the resolution to advertise for a clerk, but he if Quid inform Ward 3:1 Sly that h« was mistaken m regard to the matters he had mentioned. The sun of £10 had not been paid for work which ought to have been done by the clerk but was special extra work authorized by the Board, and as to returning officer's fees ; the clerk had always received such payment, and he had merely claimed m this ; instance what he was formerly paid without objection by the Board. Warden Ake'rg asked if it would not oe possible to' get a person to undertake the dutie3 of clerk. and engineer combined, it would be a saving to the Board >h^" believed. The Chairman -. did-not. think so, and further stated that to.dißpense with their present engineer wstjtd be, he considered, a most unwise and 4ll;ad vised procedure ;on the part of Mr Armstrong <m every way stfiwd' the" Board and trans* .■acted his duties m their interests with a : conscientiousness correctness 1 , and also .thorough efficiency" not ti . be met with upmost persons who .. mi^ht undertake Jto.apt m the ».ime po^iii jiil. : : Besides jre.-,; jgarding information ais'to idripaid ratesiri' i they could not .expect to obtain : thisv^rpfirtlieir iate Secretary^ huta-gapd /deaVisould. be, procured from Mr .Arm, strong who was conversant with jniattors ; m the past and could render valuable/ as- . . sis.ta'ric'e in ' getting' affairs., put straight. He would also propose that wlioeyer - se-' 1 cured the position- of Secretary! should■not be permitted to transact any private business m. the office^. of the. Board. His* reason ; for making this stipulation, was that it had transpired that private papers 'and books belonging to their late Secretary had been overhauled by- some unscrupulous person during his (the' Secretary's) absence from the office and information gleaned from this inspection had been lhude use of to damage the business standing of other persons besides the Secretary, whosenames were ascertained to appear amongst such documents. He might state that the pergon who had acted m this unwarrantable and despicable manner was kuown and his actions m future would be carefully watched and care taken that no private papers or books should be left about while he was m the way. Warden Sly thought that unless the Board could offer a very good salary this stipulation would be a very hard one unless the hours of attendance at the office were reduced. The Chairman was decided about the matter, However, and maintained +hat their future Secretary, should not be allowed to do other than Board business m the Board's office. Warden Sly thought that m reference to this affair of the late secretary mentioned by the Chairman, the secretary was as much to blame' as the person who over-looked his papers. The secretary should lock such things up when leaving the office. He (Mr Sly) if he went into the office of the Board m the absence; of the secretary, would feel perfectly justi* fied m examining any books he might find there. He took the world as it was, some persons m it were overburdened with curiosity, but m this case, the secre* tary was to blame. and: not the- worldThe secretary could be altered but not the world. Any ratepayer going into the Road Board office \was entitled to look at anything he could find there, The Ok airman asked Warden Sly if he Wft* alone m tho office and found a book or paper riot belonging; to the Board would he. feel justified in i perusing it. Warden Sly replying m the negative the matter then dropped. It was resolved to advertise for a secretary m Wellington and Palmerston newspapers. • It was decided that the salary should include Returning Officer's fees, and the hours be 10 to 3. Warden Sly proposed that their chairman interview Mr Idnton and offer him £20 per annum for the use of the two rooms mentioned m application. . * It was resolved to sec"nre 'the servioies of Mr Hoe to appear m Court on August 20th when certain rate cases would be heard, and m, <e vent of the secretary's^ absence the chairman to attend instead.