110

A.—4,

keeper fills in the values in the money column ; on one he certifies that the stores have been issued, and sends it on to the Accountant. The requisitions contain a column showing to what account the stores issued are to be charged, which is filled in by the officer making the requisition, and, in that sent to the Accountant, an additional column shows the " Service for which required," so that the charge can be verified. The third form is kept by the Storekeeper. Upon this certificate the Accountant is able to charge each, vote or service with the values of the stores consumed. The " Issue-book " is made up from the requisitions under the headings of the several accounts to which the issues are chargeable, with sub-headings in separate columns for each article. It is entered according to date, and the monthly total only of the value of the stores issued is entered in the money column. The " Stores Ledger " shows all the stores received, issued, and in the store under the heading of each separate article. The debit side is posted from the stores-book, and shows the date of receipt, from whom received, the quantity, the rate, and the value. The credit side is posted from the issue-book, and shows the date of issue, the quantity, rate, value, and the account to be charged. Thus the ledger shows at any time the stock on hand of each article and the money-value. The ledger is balanced quarterly, and stock is taken yearly by an officer sent from the Traffic Audit for the purpose, and a balanced statement of the stock in hand compared with the book balances is sent to the Traffic Auditor The excesses and deficiencies are usually found to be very small. This system of accounting for stores seems to be simple and effective, and, as the Treasury is informed of the issues, and charges the public accounts accordingly, the railway accounts as appearing in the books of the Treasury and of the department are said to be in accord. Two weak points may be noted First, that stores requisitioned for for one service may be used for another. This may take place to a very small extent, but as the workshops for the construction are separate from those for working lines, and as there is a separate foreman for each branch in the workshops, and the issues are made on dockets for small quantities of material at a time, only as wanted, the interchange of the service in the use of material is trifling. Such discrepancies are assumed to balance one another, and are not noticed in the account. The other point is of more importance. The system assumes that all stores are issued at cost price, but if stores of a similar kind are bought at different prices under consecutive contracts, as it is stated to be impossible in practice to keep them separate in the store, stores may be bought at one price and issued at another. No satisfactory system seems to have been adopted to correct the error arising under 1 this head, and so maintain the complete integrity of the system. It is clear that if the error from this sourceis not adjusted, the value of the stock on hand cannot coincide with that on the books, even were the numbers and quantities found to be correct at the inspection. In the case of rails which have been bought at very different rates within short periods, an average price for issue has been used. But such a plan, whilst diminishing the errors arising from the cause to which lam referring, would not completely adjust the account. In fact, the errors arising from this source, as well as from discrepancies appearing on the stock-taking, have never been adjusted or written off the books. The total accumulated error is however comparatively small.

There is no Colonial Store in Victoria. All stores are purchased upon contracts, which are entered into by a Tender Board, and the articles are supplied when wanted, not to any store, but to the departments requiring them upon requisitions approved by the Minister of each, and in each department there is a small store for the custody of articles in current use. The Tender Board consists of the permanent heads of departments, with a Secretary, who is a permanent officer, and manages all the shipping business in

Victoria,

The Tender Board.