I am commanded by the 
Lords Commissioners of Her Majesty's
                  Treasury to transmit to you herewith, for the information of
               
M Secretary Cardwell, a copy of a Report, No 217, from
               the Commissioners of Audit dated 
23 Ultimo, with copy
               of the reply which My Lords have addressed to the Commissioners
               relating to expenditure on Roads in 
British Columbia, and
to
 to
               the money borrowed by Debentures and Road Bonds to cover that
               expenditure during the year 
1862.
               
               I am, at the same time, to transmit to you the enclosed
               statement of payments not provided for in the estimates for
               the year, and to request that you will move 
M Secretary
                  Cardwell to inform My Lords whether he sees any objection to
               the admission of the charges enumerated in that statement;
My
               My Lords would suggest that the Governor of 
British Columbia
               should be instructed to prepare at the end of each year,
               Supplementary Estimates of all expenditure not covered by
               the original Estimate of the year, and to submit the same,
               as soon as convenient at the commencement of the following
               year, to the Legislative Council with an Ordinance to
               authorize the appropriation of the amount required
to
 to cover
               the excess over the original estimates.
               
               Minutes by CO staff
               
                
                  
                  
                  
                  
                     2. With regard to allowing the charges enumerated in
                     the statement I think that though they may ultimately
                     be sanctioned it w only be right, since they amount
                     to a total of £3653, that an explanation sh be
                     requested from the Governor. The explanation will probably
                     be sufficient, but nevertheless it w, I think, be
                     well to let the local Authorities feel that excesses of
                     expenditure do not pass at home as a matter of course.
                     
                  
                  
                     The supplementary Estimate, suggested by the T-y
                     seems to me a very proper proceeding. In Ceylon an
                     Estimate of this sort is if I remember right always
                     prepared & sent home for approval.
                     
                  
                  
                   
                  
                  
                     We have reason to believe that 
Governor Seymour is
                     going to look closely into the state of the public
                     service in 
British Columbia, and we may hope that he will
                     put his accounts on a sound footing.
                     
                     In the meantime, seeing the great inconvenience which
                     follows from keeping public accounts indefinitely open
                     and looking at the analysis, which 
M Ebden has
                     furnished of the items composing the excess of expenditure,
                     I would recommend in this case that we furnish the
                     Treasury with the Secretary of State's opinion that the
                     charges may be admitted. It is evident on the face of
                     them that they are charges of a public nature. The
                     Auditors cannot pass any excess of expenditure without
                     authority from 
the Treasury, and 
the Treasury cannot
                     give it without an opinion from hence, but they are
                     always perfectly willing to receive and act upon such
                     an opinion. I should transmit the papers to the Governor:
                     I should say that 
M Cardwell feels confidence in his
                     using his best endeavours to bring the accounts of
                     the Colony into a satisfactory condition: with regard
                     to supplementary Estimates, I should repeat in the body of
                     the despatch the substance of the instructions required by 
the Treasury.
                     
                  
                  
                     M Ebden
                     Prepare draft to 
Gov & Treasury, modified as I have explained to
                     you that 
M Cardwell has directed.