1098
THE NEW ZEALAND GAZETTE.
[No. 23

25. Each Board shall keep such books or records as will enable its secretary to produce a statement of income and expenditure and a balance-sheet for each financial year.

26. (a.) “Income” shall be deemed to mean the sum total to which the account is entitled in respect of the financial year to which such statement of income applies, whether the same has been actually received or not during such financial year. “Income” shall not include receipts in respect of previous or subsequent financial years: Provided that where any amount received in respect of a previous year has not been taken into that year’s account such amount shall be shown as “miscellaneous income.”

(b.) “Expenditure” shall be deemed to mean the sum total chargeable in respect of a financial year to which such statement of expenditure relates, whether such is actually paid within such financial year or not, and shall not include payments in respect of previous or subsequent financial years: Provided that where payments in respect of a previous year have not been taken into that year’s account such payments shall be shown as “miscellaneous expenditure.”

(c.) All receipts and payments, or income and expenditure, under this regulation shall be known as “maintenance,” as distinct from “capital,” described in Regulation 27.

27. Receipts or revenue on account of capital, and payments or expenditure on account of capital, shall not be included in the Income and Expenditure Account.

(a.) Receipts or revenue on account of capital shall be deemed to mean moneys or other value received or receivable, which—

(i.) Are for the purpose of or may be lawfully and properly appropriated for capital expenditure;

(ii.) Form the proceeds of the disposal of any permanent fixed and capital assets of a Board; or

(iii.) Are for the purpose of repaying the principal of any loan for capital expenditure.

(b.) “Capital expenditure” shall be deemed to mean any expenditure upon the acquisition of land, the erection of buildings (including structural alterations), the initial purchase of equipment, and any permanent improvements to such existing assets, including legal and other expenses, and architects’ fees and, generally, all expenditure resulting in the addition to the fixed assets of a Board; but shall not include expenditure for the purpose of maintaining such assets in a state of efficiency: Provided that replacements of an article of equipment and of buildings shall be treated as capital expenditure in respect of the difference in the value previously appearing in the Board’s books and the cost of replacement, and the asset shall be increased accordingly in the next ensuing balance-sheet. The remainder of such cost shall not be treated as capital expenditure, but shall be included in the Income and Expenditure Account.

Provided also that for the purpose only of making levy on contributory local authorities and obtaining subsidy thereon, the following shall be treated as capital expenditure:—

(i.) The whole cost of replacements of buildings or of an article of equipment exceeding £100 in value.

(ii.) Repayment of the principal of loans current for capital purposes.

(iii.) The amount to be placed to the credit of a building fund created under section 87 of the said Act provided such fund shall be duly invested as provided in the section aforesaid.

28. The value of the fixed assets of a Board shall be such as is shown in the balance-sheet as at the close of the previous financial year, and the amount of such value shall appear in the next ensuing balance-sheet, with the addition of any capital expenditure which comes within the meaning of Regulation 27, and subject to deduction in respect of the sale or other disposal of such assets and in respect of depreciation as hereunder provided.

29. The accounts representing the fixed assets of the Board shall be credited, and Capital Account, or the account of the special fund in respect of which such assets are held, as the case may be, debited with the amount of any loss arising out of the sale or other disposal of such assets, and with the amount of depreciation estimated to have taken place.

30. Where the amount of the proceeds receivable in respect of the disposal of any of the fixed assets of the Board exceeds the value as shown in the books the amount of such excess shall be debited to the asset account concerned and credited to Capital Account, or to the account of the special fund in respect of which such assets are held.

31. Every account kept of fees payable by persons assisted shall be debited with the full amount of the maintenance fee fixed by the Board’s by-laws in respect of ordinary patients: Provided that such accounts shall be credited separately with—

(a.) The amounts allowed as a reduction in the scale of fees to be paid on account of such patient in accordance with any agreement or rule made by the Board and applicable to a particular class of patient; and

(b.) The amounts allowed by resolution of the Board to be written off as irrecoverable.