WAIHI CO-OPERATIVE SOCIETY.

Te Aroha News, Volume XXVI, Issue 43107, 20 June 1907, Page 4

WAIHI CO-OPERATIVE SOCIETY.

At a meeting of shareholders of the Waahi Workers’ Co-Operative, Society Messrs R. Gooch and W. M. Wallnutt, auditors, reported as follows: During the past fortnight we have been asked by the members a great ;• many questions regarding the society, so we think it is due both to members and ourselves to make the following statement:—(l) We were paid a ’fee of one guinea* and half to check hall yearly balance-sheets. We mention fee to show nature of work required ■0 : from us. (2) An interesting item in •. V ' balance sheets appeared under heading fixtures and plant, which were valued by the staff. We advised the management of advisabilit" of reducing the amount as it represented so large at part of society’s capital. ( ) Stock was also taken by the. staff, and . as this allowed scope for fictitious Values to appear we drew attention to the fact, and noted on- the balancesheet that these items were taken as valued by the manager and staff and out suggestion that an outsider be employed was not acted upon. _ (4) We found that credit was being given for goods supplied, and we drew attention to the fact that this was con- ■ trary to the society’s rules, and informed the society that .if credit was to be given a special general meeting olf members must be called in. terms of regarding all sales being for cash. (5) There is so great a difference between the value of a forced realisation and one valued as a going concern, that we cannot from the measrre details a,t our disposal express any opinion as to the present position. At the time of oni" last audit, of the balance-sheet (in January last) the Society’s position so far as we could ;I judge from, the information supplied was perfectly solvent. It bias been suggested that the liabilities then may have been understated and the assets over valued, i . This was, however, outside our control' for the reasons stated, and if the suggestion is correct we can only point out that hiad effect been given ' to our recommendation, the Society would not. in all probability, be in its present unfortunate position. (6) At the time of Mr Corringham’s resignation, the incoming manager went throusrh the assets and liabilities including a careful comparison of the accounts rendered by the,, merchants with the amounts appearing to the merchants’ credit in the society’s books, and informed .us that he was ' quite satisfied that the statements were correct. (7) At the dates when we checked the balance-sheet we were informed that only three books were kept and produced for checking the balancesheet.

We were informed that no ledger was kept) for credit accounts, but merely dockets and ai list of current accounts totalling the amounts shown in the balance-sheet of January last was produced for our information. Prior to January no book debts were disclosed. (8) We have had nothing to do with the society’s affairs since January last.. It has come to our knowledge within! the past few days that some accounts in the ledger are now incorrectly stated, figure® having been erased or added to. There was no evidence of any alteration, in January last, -and we, of course, cannot suggest when this may have been done.