Colonial Despatches

I have had the honor to receive Your Lordship's Circular Despatches of the 16th August, and 8th September, relating to the measures which it may be found necessary to adopt in the Crown Colonies for securing a sufficient audit now that the accounts of those Colonies are no longer audited in England, and requiring copies of any instructions that may have been issued for the guidance of the Treasurer and Auditor with any other general information as to the manner in which the receipt and expenditure of Public money are controlled.

2. No Colonial Instructions as to the keeping or rendering of the accounts of this Colony have ever been issued to either the Treasurer or Auditor. The Draft Instructions of the Lord Commissioners of Her Majesty's Treasury to the Treasurer and Auditor respectively have been the guide as to the system to be pursued in keeping the Accounts and checking the Revenue and Expenditure.

3. This system may be continued for the present although it is doubtful whether a simpler form better suited to a small community like this might not be adopted. But, in future after the establishment of a Legislative Council under the authority for this purpose recently transmitted, the Colony having ceased to be a Crown Colony, it will I presume be open to the Legislature to establish such arrangements as seem fit; and I shall propose to that body that a Committee of Audit should be appointed formed by elected Members, who from time to time may satisfy themselves and report to the Legislature as to the efficient discharge of the duties of the audit Office.

4. In relation to this subject I shall be glad to be instructed whether the directions contained in the Duke of Buckingham's Despatch to my Predecessor No. 105 of the 7th December 1868, as to the preparation of the Annual Estimates and the Financial Returns in connection therewith, are still to be held applicable to this Colony under the change of constitution, and in view of the new approach of Union with the Dominion of Canada.