No. 32, Financial
4th June 1864
My Lord Duke
It appears that the public Accounts of this Colony have never been transmitted to England for audit, the Auditor's action being final.
I would wish to be informed whether this is the practice authorized by the Secretary of State and the Lords of the Treasury.
I have the honor to be
My Lord Duke
Your Graces very obedient Servant
A.E. Kennedy
Governor
Minutes by CO staff
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Sir F. Rogers
With "the Public Accounts of this Colony" the Imperial Govt has no concern. The Ho: Assembly votes the money required for the public service, & appropriates it. The Auditors in England do not audit the public accounts of Canada, neither is it incumbent on them to audit the V.C. accounts which stand on the same footing as the Canadian Accounts. There is, however, in V.C.I. a Crown Land Fund, (and, as I contend, also other sources of incidental revenue belonging to the Crown,) of which we ought to have had Estimates of appropriation & the account of the expenditure from the time of the establishment of Representative Govt in V.C.I. But we have never had such separate & distinct Estimates or accounts. The proceeds of the Crown Estate have been applied to the general service of the Colony in the same way as other monies voted by the Assembly. This ought not to have been the practice. But taking into consideration that if we were now to desire the Govr to send home Estimates & accounts they wd not reach us for a year or more—that before the expiration of that time we hope to have arrived at a settlement with the Assembly respecting the Civil List, it appears to me scarcely worth while to alter the present system. On the whole I shd , therefore, suggest that Govr K. be informed that the public Accounts ought to be audited by a responsible Officer to him & the Colony, & that it is not usual to audit them in England.
ABd 27 July/64
I would write that the accounts of the General Revenue in aManuscript image Colony possessing Reprve Institutions like V.C.I. are not subject to audit in this Country, but that the Crown Revenue, that is to say the moneys derived from the disposal of Lands and other sources not under the control of the Assy ought to have been so audited. That in case it shd appear probable that the Assembly will not take over the Crown Re on the terms offered by the D of N. steps should be at once taken to place this Audit on a proper footing prospectively—submitting annual statements of Estimates & the accounts similar to those furnished in Crown Colonies (but verify this). And that in any case a statement of past receipts & expenditure [of] the Crown Fund should be compiled and sent to England.
FR 28/7
EC 29
Other documents included in the file
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Draft reply, Cardwell to Kennedy, No. 29, 1 August 1864.
Kennedy, Arthur to Pelham-Clinton, Henry Pelham Fiennes 4 June 1864, CO 305:22, no. 6971, 272. The Colonial Despatches of Vancouver Island and British Columbia 1846-1871, Edition 2.2, ed. James Hendrickson and the Colonial Despatches project. Victoria, B.C.: University of Victoria. https://bcgenesis.uvic.ca/V64132.html.

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