No. 38

I have to acknowledge the receipt of your Despatch No. 138 of the
18th October on the subject of the Audit of the Public accounts and the
Audit Returns required in connection with the Estimates.

In the case of the Colony which, like British Columbia under its changed
constitution possesses representative Institutions, but not Responsible
Government, it is right that the Representatives of the people should
have full and early knowledge of all important Acts of the Government in
connection with the financial questions, the consideration of which forms
a material part of the business of the Legislative Council; although
that Council cannot have the same control over the Public Officers of
the Colony as is possessed by the Legislature of a Colony under
Responsible Government.

Subject, therefore to the distinct
understanding that the Auditor of British Columbia will not become Responsible to
the Legislature, but will continue to be under the control of the Governor, and to hold
his office on the same tenure as any other civil officer. I have no
objections to your proposing to have an Audit Committee of the Legislative Council
in order that the members of that body may be satisfied as to the
efficient discharge of the duties of the Audit Office and while the
Treasurer and the Auditor must act on instructions from the Governor and
be responsible to him for the collection and disbursement of all Public
Monies and the keeping of Accounts of the Colony, I am of opinion that
any instruction which with advice from the Executive Council you may from time to
time think it desirable to issue to these Officers and any reports made
by you under their instructions, should be laid before the Exexutive Clouncil for
their information.

There should of course be a distinctly defined power vested in the
Executive of discharging in any emergency the expenditure of money for a
purpose for which specific provision may not have been previously made in
any Appropriation Ordinance, but in such a case the necessary sanction
should be conveyed to the Auditor as well as to the Treasurer in a
Minute of the Exexutive Council and a copy of such Minute should be laid before
the Legislative Council as soon as practicable for their information.
The annual report of the Auditor should also be laid before the Legislative Clouncil
as early as possible in each year and the usual number of printed copies
should be sent to the Secretary of State.

Referring to the 4th paragraph of your Despatch I am of opinion
that it will be sufficient for the present that I should receive with
Estimates for 1871 and the Supplementary estimates for 1870 in addition
to any other information and Returns which you may lay before the Legislature in connection with
those Estimates, the statements of Assets and liabilities. The
Treasurers Return of Cash transactions for the preceding years as
required by the instructions of my Predecessor the Duke of Buckingham
and with these it seems to me the Council should be furnished [some]
elucidation of the Estimates.

With reference to my Despatch No. 33 of the 15th Nov. in which I
instruct you to forward as heretofore the Quarterly Financial Returns I
have to inform you that the general abstract of those Returns will be
sufficient for the information of this Department, and that you may
discontinue to sending the sub-Returns of which it is comprised.

I have to request that you will also forward to this Department, as
soon as the accounts for the year including the Agents Account are
composed of comparative statements of actual Revenue and Expenditure for
that and the preceeding year.