Waimate County Council.

Waimate Daily Advertiser, Volume VI, Issue 11, 28 January 1905, Page 5

Waimate County Council.

THE DISPUTED BALANCE SHEETS.

Following is a letter read by the County Treasurer (Mr G. V. Cochrane) at last meeting setting forth the’’ Council’s position in regard to the Auditor-General’s objections :— In reference to the exceptions contained in the certificate of the Auditor-General for the balancesheet for the half year ended 31st March 1903, and for the yearly balance-sheet ended 31st March 1903, I beg to report as follows :— (1) Charges to separate accounts— Timaru Harbour Board Contribution.

The amount taken exception to is the amount which had to be paid in order to make up the annual contribution to the Timaru Harbour Baard, in excess of the amount actually received for the period. No exception has been taken in previous years to this course. Lower Pareoraand Lower Waihao Water Supply Maintenance.—The Council has always contended, and has always been advised that all expenditure which would have to be incurred by a Separate Board, if the races were administered by a Separate Board, should be charged to the Separate Account. In the recent proceedings in the Supreme Court, it was so argued on behalf of tbe Council, but no decision was given either way on that point. The other items excepted to under this head can all be classed together. The amounts are for moneys expended on works for which special grants are made by Government. In order to earn grants the money has first to be expended, but the' Government contracts to make the grants if the Council executes the works. When the works are executed on the faith of the promise of the Government the money is legally recoverable from the Government. The Auditor-General takes np the position that such monies should not be treated as assets. If the monies promised by the Government are assets, then they are assets of these separate accounts, and if the payments are not charged to these separate accounts, I fail to see to what other accounts they can be charged. The question was not even suggested in auditing previous balancesheets, and it was not among the I objections relied on by the Auditor'General in defending the recent proceedings brought against him by the Council. He had expressed hie willingness to audit and certify these very same balance-sheets if the Council accepted bis ruling on certain other points. (2.) Amounts charged to Timaru Harbour Board Contribution Account for revising rolls. The Auditor-General contends that the amount of the rate only, without including any expenses connected with collecting the rate can be charged to this account. The Council has been advised that the cost of revising the rolls is properly chargeable to the account as part of the expenses necessarily incurred in collecting the rate. This question, together with this of interest on overdraft of the Water Supply Account, was argued in the Supreme Court, but not decided. (4.) Deposit in Appeal Case Lower Waihao Water Supply Dis. trict.—This refers to an amount deposited by the Council ’to meet legal expenses then not determined in an action brought by it against a water ratepayer. (5.) The charge made by the Land fund account for supervision of the expenditure of the Fund. This charge is so made under resolution of the Council, and has always been shown in the annual returns of the Land Board and no objection has been taken to the procedure by it. (6.) That transfers are entered in the balance sheet as from or to the County Fund instead of the General Account. This, I would respectfully suggest, should be given effect, it is only an alteration of word. (7.) The answer to the exceptions taken under heading No 1 contains an answer to this objection. The amounts referred to as incorrectly shown as assets are the amounts of the special grants actually due to the Council by the Government in respect of works done. These grants are actually debts from the Government to the Council when the works for which they were granted have been, undertaken and I think are entitled to rank as assets. Your obedient servant Geo. V. Cochrane, Treasurer.