55

I.t-Tat

Statement of Transactions between the Treasury and Postmaster-General in connection with the item "Miscellaneous Expenses," as shown in the Quarterly Accounts of the PostOffice Account, as under:—

Audit Qubby No. 28.—The Secretary, General Post Office : The amount of the balances outstand-; ing in favour of the Post Office on account of these payments indicates that the Treasury too often fails to provide for them in due course. It is requested that, if the case is as thus indicated, it may be stated what action has.been taken by the department in the matter ; or, if such is not the case,' it may be explained how it arises that balances so large should often be due to the department. — J. K. Wahburton, Controller and Auditor-General, 12th January, 1898. The Controller and Auditor-General. —-Applications for imprests are made often in advance of actual requirements, but it is not always possible to determine what these may be until the end of a, quarter. When the imprest requisitions are not promptly satisfied, renewed applications are made to the Treasury. This is frequently done.—W. Gray, 17th January, 1898.

The Treasury. Audit Office, 28th January, 1898. If the Post Office, in paying claims upon the Government lawfully payable at the direction of the Postmaster-General out of moneys imprested to him for the purpose, pays' such claims to an amount greater than the balance in his hands of the moneys so imprested, the amount by which the payments exceed such balance comes for a time from the Post Office funds, which are largely, if not entirely, trust funds, and which lawfully cannot be used for the purpose ; and thus, in principle at least, a serious breach of trust is committed. On the 31st December, 1895, the Post Office had, according to the Post Office Account, paid the claims to an amount greater than the amount of the balance of imprest moneys by £31,250 4s. 9d.; on the 31st December, 1896, by £17,298 Is. 2d.; and on the 31st September, "1897, by £31,314 19s. lid. ; and if, as there is reason to fear, the payment of these sums is such a breach of trust as has been indicated, the question arises whether it is not practicable for the Post Office at once to strictly comply with the law, and to cease to pay any claims whatever for which the Treasury has not previously imprested moneys. The Post Office is perhaps in the difficulty of being unable always to estimate with precision what amount of moneys should be imprested. But if this difficulty, which does not at the close of the financial year result in showing that too large an amount of the claims has been paid at that date, could be allowed to account for exceptional cases of the payment by the Post Office of claims exceeding in amount the imprests available at the time, and these eases should be regarded as the unavoidable contingencies of the operation of a beneficial provision of the Public Revenues Act, the condition would have to be that the Treasury should, as soon as any case had been ascertained to have thus arisen, immediately pay to the Post Office the amount necessary to correct the irregularity. Such difficulty of making a precise estimate obviously will not account for so large ah excessive payment of the claims as from £17,000 to £31,000, while, on the other hand, the Post Office explains its action, in the case of the failure of the Treasury to provide in due course for the imprest payments, to be that "when the imprest requisitions are not promptly satisfied renewed applications are made to the Treasury. This is frequently done." If the Post Office has been taking the unlawful course, it would not be to the point to urge that the result has been of mutual benefit, or that the interests of the Post Office have not'suffered. The objection to the course lies in any risk that there may be of a contrary result, as well as in the want of lawful authority. The Post Office often has a large. uninvested balance, and in general looks to, or depends upon, the Treasury for the necessary securities; so that, notwithstanding what may have been the fortunate circumstances of the past, it can easily be conceived that the exigencies of the Treasury might happen to be such as to require an exercise of self-denial. The Post Office ought not to make such excessive payments, and it appears to be the duty of the Treasury, as the department charged with the administration of the Public Revenues Act, to take such notice of any faults of the kind as should put an end to them and prevent their recurrence. J. K. Waeburton, Controller and Auditor-General.

Balances, 31st Dec, 1895... £ s. d. Dr. 31,250 4 9 1896. Mar. Quarter... Mar. „ By advances To expenses; ... .;,. By advances To expenses By advances To expenses By advances, ... To expenses 105,042 15 3 140,127 6 9 Gr. 3,834 6 9 June „ 81,200 0 ,0; Dr. 14,144 19 9|- ; June „ Sept. „ Sept. „ ... Dec. !.„ ... 99,179 6 6-J-j 96,131 8 6 i 101,262 3 2* Dr. 19,275 14 6.', 109,533 4 4 ... 146,107 0 0 Dec. „ ... 1897. Mar. Quarter... Gr. 17,298 1 2 , ( By advances To expenses By advances. .... .';'. To expenses By advances To expenses 137,810 8 6 124,980 18 0 Gr; 4,468 10 8 j Mar. „ 80,280 00 June , „ 108,855 6 7 Dr. 24,106 15 11 Dr. 31,314 19 11 ' June „ Sept. „ ... Sept. „ ... 112,373 5 10 105,165 1 10