AUDITING FEES.

Shannon News, 21 January 1927, Page 4

AUDITING FEES.

A GOVERNMENT EXPLANATION. Writing to tlie Council in regard to a letter addressed l\v the Town Clerk to the Audit Office, protesting against “'the excessive cost of audit of the Levin Borough accounts, ’’ Mr G. F. C. Campbell, Controller and Auditon-Gelneral, stated that the matter was referred to the Audit Inspector, a copy of whose report, was sent for the information of the Mayor and Council, and the writer trusted that it would be considered an adequate explanation. He added that the Audit Office was, owing to the many demands on it, always endeavouring to shorten rather than prolong the time spent over audits, but there wore occasions where time could not be considered against requirements for verification of items involved in various accounts, and one of such occasions clearly arose in -lie Council’s case. In his report the Audit Inspector stated: —

“I have carefully checked the timeoccupied on these accounts and find that Hie Borough was not overcharged.. For reasons stated below I made a closer examination of details than I might have considered necessary under other circumstances. When flu* accounts for the year 1923-24 were inspected by Mr llamilion, the present Cleric had ju>t been appointed. ... “1. Receipt forms were machinenumbored in the Council’s office. Unnumbered forms were found at tlie end of bonks.

“2. The Clerk adopted a •-ystem of ‘carrying over’ varying .amounts of cash from day to day, liis explanation being that he required such amounts for change. “4. The Council intended to erect and furnish municipal buildings by contract, but finding the prices quoted in the tenders to be so much in excess of the ejtimate of the architect, authorised him to procure certain of the material—steel and cement—and to |.>t separate contracts for the various classes of work —concrete,' carpentering, plumbing, plastering, glazing joinery, painting, electrical installations, fund turo and linoleum, structural steel, etc. As the Clerk did not keep records of these contracts, I considered it necessary to open a memo account, for each.

“5. In order to meet claims for material for tin building, a sum of £I3OO was paid to the architect on the 4th July, 1924, and a further payment of £2lB os, including £2 3s exchange, on the Ist October, 1924. From the receipts attached to Bennie’s —the architect’s —vouchers for these amounts, it appeared that during July sum {.(Palling £llsß Os 5d were disbursed by him, but the balance, £438 19s 7d, ww, not disbursed, until November. “6. in numerous iastancci cCh-ie-ceivecl on account of credit oales was credited to wrong accounts.'’ When the correspondence came before the Council last night, the Mayor said lie did not think thic was quite an answer to the Council’s enquiry. They wanted to know why the auditor was so long at the work here, i Evidently iie brought up several things that concerned the Council to a certain extent. However, the balance sheet had been audited and found correct, which was the chief point as far as the Council was concerned. A reference to the Town Clerk not presenting a balance sheet was wrong, because he prepared a balance sheet, which Mr Hamilton, previous inspector, audited. In regard to the municipal buildings, that had ail been paid oft' and settled up. Ife did not know that there was anything there to question. The main thing wa* that the auditor worked about 20 hours a day He took it. that the auditor teas under the direction of the Government, and lie was practically his own boss. Every local body had to pay for the time ho was engaged. These various items had been discussed with the Town 1 Clerk and any recommendations he had j made were being carried out now to the best of the Council’s ability. He moved that the report be received. Cr. Parker: The letter is a reply, all right, .to our request. It depends on the presentation of a balance sheet and vouchers, and the time required for the correct auditing of that balance sheet, lie complains of vouchers not being forthcoming. Hie Town Clerk: Yes, they were there.

O. Parker: I think it ought to be a remit” to the Municipal Conference that an auditor should not work more than a certain time each day. The correspondence was received.