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New Zealand Times, Volume XXX, Issue 4414, 13 May 1875, Page 2

Our space does not admit of dealing with the important points of provincial finance, raised by the report of the Audit Committee, and debated yesterday in the Provincial Council. It is, however, requisite to state that the debate, (and to some extent the committee’s report,) proceeded upon a misapprehension of the Provincial Audit Acts. For example, when Mr. Bunny expressed the opinion that it was the duty of the Provincial Auditor to assist the Provincial Treasury officers to adjust their balances, he spoke without duo reflection. It is not the duty of an auditor to act as accountant, and check his own work; it is his duty to report upon the accounts presented to him for audit; but in the case of the Provincial Auditor, his duties are specifically defined by the Audit Act of 1860, and he is liable, under heavy penalties, to discharge those duties. Now, doing the work of Provincial Accountant is not one of those duties. On the contrary, the law provides that it shall be the duty of every Superinton-

dent to cause quarterly accounts of receipts and disbursements of his province, including the cost, charges, and expenses incidental to the management of the same, together with a balance-sheet of the accounts, showing the permanent debts of tiro province, to be made out and forwarded in duplicate to be examined by the Provincial Auditor, not later than thirty days after the termination of the quarter or financial period, for which they have been made up. It is thus the duty of the Superintendent to transmit the public accounts of the province, “ in such “ form as the Governor shall from time to “ time direct,” to the Provincial Auditor for examination. And the Auditor is empowered (section xvn.) “ to call for “all books, papers, and vouchers, rela- “ ting to the accounts forwarded to him “ as aforesaid for examination, and also “ to examine witnesses touching the said “ account.” The section further enacts : “ and every person is hereby required to “ give such attendance, and produce such “ books, papers, and vouchers as the ‘ ‘ Provincial Auditor shall order or direct “ by summons under his hand, stating “ the object for which such person is “ required to attend, and specifying the ‘ 1 books, papers, and vouchers to be prof‘ duced.” Nor does the law leave it optional for persons to attend at the Provincial Auditor’s summons. Section xvni. enacts a penalty for failing to attend on summons, or to submit to examination, or to produce any books, papers, or vouchers as required, “ with“out reasonable cause,” not exceeding £IOO, to bo recovered in a summary way before any Resident Magistrate or two justices of the peace. Nay more, the Provincial Auditor may examine on oath, the witnesses being liable to a prosecution for perjury for giving wilfully false and corrupt evidence. These are large discretionary powers, which the Crown entrusts to the Provincial Auditor, and which that officer should only exercise in extreme cases. They have not been put in force in this case, (nor was there any necessity for doing so,) the Auditor having confined himself strictly to the course of procedure prescribed in the schedule to the Provincial Audit Act, 1866, further defining the “Provincial Auditor’s duties.” That he did not succeed in eliciting satisfactory explanations from the Provincial Treasury, appears on the face of his reports and memoranda. It will be seen that Mr. Bunny’s idea of making the Provincial Auditor a mere clerk in the Provincial Treasury, is inconsistent with the letter and spirit of the Provincial Audit Acts. Indeed, if the Provincial Auditor accepted such a position, the audit would be a sham. For the first time, we believe, in the history of the province, there has been a close audit; and instead of attacking an officer appointed by the Crown for the faithful and fearless discharge of his public duty, llr. Bunny should have been grateful to him for bringing the exact position of affairs before the Provincial Council. -This attack was as unwise as it was undeserved. In like manner, the recommendation of the Finance Committee, that the Government should introduce a Bill next session “ to give legal effect to the sys- “ tem of pre-audit” which had been arranged between the Auditor and the Provincial Treasury, is founded on a misapprehension of the law. The 11th section of the Provincial Audit Act, 1866, provides expressly for a pre-audit, and it was the disregard of this provison in past years that resulted in those unpleasant consequences to which we need not further refer. That section is as follows :

“ Every such warrant for the issue “ of money by any Provincial Treasurer, “ or such other person as aforesaid, shall “ before the same is signed hy the Superin- ‘ ‘ tendent, he laid before the Provincial “ Auditor, who shall not certify the same “ unless the sums therein mentioned are “ then legally available for the services “ therein specified by virtue of an Act “ or Ordinance of the Superintendent “ and Provincial Council of the pro- “ vince.”

In conclusion, we may add that the amendments which Mr. Bunny proposed were not unreasonable under the circumstances ; but they do not explain the discrepancies in the accounts pointed out by the Provincial Auditor and admitted to exist.