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New Zealand Times, Volume XXXII, Issue 4954, 7 February 1877, Page 2

Some days ago we published a telegram from Auckland stating that a Mr. Wright had reported unfavorably on the Auckland city accounts. Papers to hand give full particulars, and the charges made against the Corporation officials are so serious as to completely throw into the shade the little breeze we had in Wellington a twelvemonth or so since. As regards the present state of the books, and the manner in which they have been kept since the appointment of Mr. Brodie, Mr. Wright says he finds that they have never been balanced, and have not been kept in such a manner as to render a balance-sheet possible; that they have never been kept either by double or single entry ; that there is an absence of system, and that a very large numberof entries are utterly wrong. He finds entries in different handwritings as late as 1876, dates disregarded and confused, accounts in the ledger showing transactions between 1872 down to August 1875 still open, and not corresponding with the annual printed statements. During the year ending October 31st, 1876, he finds the accounts wholly incorrect, and some of the largest and most important items are absolutely not shown at all, and that accounts amounting to many thousand pounds are unaccounted for. But on the 31st October many new accounts were opened with the object of covering up and rectifying errors and omissions of the preceding years, representing a sum of £200,000. He reports that the books are now much more correct than they were at the end of October last, but that they are still by no means accurate. The blunders in the books are numerous, persistent, and ridiculous. Down to as late as the 28th October, 1876, debits were made to appear as credits; and on October 31st intricate entries were made to rectify the blunder. The latter entries he regards as those of some skilled accountant, utterly irreconcilable with the ignorance of the elements of bookkeeping exhibited in previous entries. Mr. Wright reports also that entries-have been made in the journal in palpable ignorance of their effect. The journal has not been kept since the 31st October, nor have the closing entries on "that date been posted into the ledger." The loan of £IOO,OOO for waterworks shown in the annual printed accounts for 1875, did not appear in the books until the 30th October, 1876, and until the same date the City Council is represented in the books-as possessing no assets, and had no liabilities, but these entries were taken from the previous annual balance-sheet.. _.Mr. Brodie, in a reply, says that no respectable accountant would have signed his name to such a one-sided, false, arid malicious statement. He relies on the published annual statements, which,'He s'aysj are compiled by the auditors from the statements of receipts and expenditure, as required by the 168th section of the Municipal Corporations Act, 1867. He ■ quotes the auditor's report as to the correctness of the books. Since it c was decided that the books be kept by double' entry, he has taken steps to put the work of the year ending 31st October, 1876, into proper form for that .purpose, and to do this it was necessary to enter in the journal and post therefrom into the ledger: the statement of assets and liabilities on October 31st, 1875. He says that all the accounts have been closed, up and accounted for in the annual statement, that the accounts for 1876 are in a correct state of double entry, and that the instances given by Mr. Wri&ht are wilful misrepresentations. He concludes:—"ln conclusion, I think I have, said .sufficient to show that my work has been criticised by my avowed enemy, who cavils where there is no occasion, and will not see evidence of a desire on my part to comply, with your swishes; by one who stoops to misrepresentation and direct falsehood to do me an injury, yet dares • not to say that a single annual statement is wrong." Now, it-may be or ; may not ■ be,true that Mr. Wright bears Mr. Brodie great ill-will, and it' may or may not have been true that . something at the same feeling lay at the bottom of the squabble in Wellington previously referred to; but with that the burgesses have nothing to do. A portion of their money is appropriated to employing officers, and they have a right to expect their offices to be filled by efficient men. If Mr. Brodie had kept his accounts iproperly there would have be'en;no open-r ;ing for the rent of Mr. Wright's spleen; |and ratepayers, l we should think, are ■rather glad that there has been a quarrel, [since it has opened their eyes to the state ■of things existing in the Corporation ral laxity in respect to the appointment jof corporation officers. Hitherco in ■ Wellington the Town Cierk has acted as :accountant. As a town clerk looking •after correspondence and conducting the ;executive business of the Corporation, he : is efficient, and by his attention and cour,tesy gives satisfaction, but keeping 'accounts is not, his speciality, and it was unfair to expect him to perform ,• duties.-, for ..which particular qualifications and education are required in order ■ to, their satisfactory discharge. This anomaly is now remedied by the [appointment of a skilled accountant, and 'we may reasonably hope for no further trouble in this respect. In Auckland, ihowever, the offices of/ city,treasurer and city accountant are amalgamated. For ;what reason such' a "conjunction should have been arranged, it is impossible to conceive,, as the check ordinarily imposed iupon a treasurer is thereby.thrown aside. Against'Mr;'Brodie, as treasurer, there ; has been no complaint; but it is his accountant's work which seenis to be defective, and similar defects are likely to be discovered in all cases where offices for the sake of economy are. so injudiciously combined. An accountant" may prove a 'very good town clerk, or-an excellent treasurer'; but the reverse of the proposition seldom holds good.- We fear the 'County Councils will fall into something of the same error that Municipal Corporations haVe; been prdne to commit in the past; but the results will prove more serious, owing'to the'relations of these bodies with the Government requiring accuracy in all returns and information to be furnished by the officers.