No. 27
1 August 1864
I have the honor to acknowledge the receipt of your Despatch No. 32 of the 4th of June in which you enquire whether the practice of not sending home the public accounts for audit in this Country has been sanctioned by the Secretary of State.
In reply I have toacquaintManuscript image acquaint you that the accounts of the General Revenue in a Colony possessing Representative Institutions, like Vancouver Island, are not subjected to Audit in this Country, but that the Crown Revenue, that is to say, the monies derived from the disposal of lands, and other sources not under the control of theAssemblyManuscript image Assembly ought to have been so audited.
In case therefore it should appear probable that the Assembly will not take over the Crown Revenue on the terms offered by the Duke of Newcastle, steps should be at once taken for placing this Audit upon a proper footing prospectively: submitting annual statementsofManuscript image of Estimates and Accounts similar to those furnished in Crown Colonies, as provided by the 10 Chap: Sec. II of the Colonial Regulations.
In any case, however, a statement of the past Receipts and Expenditure of the Crown fund should be compiled and sent to the Secretary of State.
I have the honor to be
Your obedient servant
Edward Cardwell