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Birmingham Corporation Savings Bank:
Auditors (continued)
Agar, Bates, Neal & Co next wrote on April 12th 1919:
 
Neville Chamberlain Esq.
Dear Sir,
 
We beg now to enclose herewith certified Balance Sheet of the Savings Bank as at 30th September 1918, together with Income & Expenditure Account for six months to a similar date.
 
We also enclose a Coupon Stock Account as at 30th September 1918, and we are pleased to report that the revised system relating to the record of coupons transactions is working well, and is a distinct improvement on preceding methods.
 
There is a complete balance with the exception of 7. 5. 0. Stock held by Lloyds Bank; this we have for the time being added to the Stock as certified by them, as it is quite possible that in the following six months this item may adjust itself.
 
The cash deficiencies referred to in our report of the 21st November remain, and we understand that the Committee have decided for the time being to leave them as they are.
 
As in former audits, the provisions contained in Rule No. 7, have been observed.
 
Every assistance has been given to us by the Manager and his staff in the performance of our duties as Auditors, and the bookkeeping generally appears to us to be now quite satisfactory.
 
Yours faithfully,
Agar, Bates, Neal & Co.
 
The final audit by Agar, Bates, Neal & Co in relation to the BCSB was concluded with a letter to the Bank dated February 9th 1921. The contents of the letter were in the context of the BCSB having ceased trading on October 31st 1919 and going into Liquidation on April 15th 1921.
 
We now beg to enclose herewith certified account of the final figures of the Bank, from which you will see that on January 14th the City Treasurer provided funds to clear up the total deficiency on working. In sending you this account we would call your attention to our report of the 12th August 1919 from which you will see that we reported a total cash deficiency of 24. 14. 9. Of this sum 8. 19. 8. dated back to the 30th September 1917 and arose on the Receipts Account. Inasmuch as the City Treasurer ignored this sum so far as the Bank Books were concerned, and adopted in his own books only the actual cash banked, this sum of 8. 19. 8. must be considered as permanently irrecoverable, and we suggest that a Resolution should be passed by your Committee disposing of it. This Resolution will entail no writing off, as the City Treasurer's figures, and not the Savings Bank figures, were subsequently adopted.
 
With regard to the other item of deficiency 15. 15. 1. on Withdrawals Account referred to in our report, this has now been dealt with as shown on the accompanying Schedule A. It will be seen that certain excess cash received in the Savings Bank has been brought in to dispose of these deficiencies. We suggest, however, that a Resolution of your Committee should be passed approving and adopting the disposal of the deficiencies explained above. We would point out that the account shows a sum of 28. 0. 4. in hand from excess receipts after clearing up the deficiency, and this sum has been transferred to the Municipal Bank which must be deemed to have assumed any liability which might crop up in connection with the excess cash received. Here again, we suggest that a Resolution should be passed whereby the Municipal Bank assumes such liability.
 
Coupon Account - The final position of the Coupon Stock Account is shown on the statement as at 31st March 1920, from which it will be seen that there is a shortage arising on Lloyds Bank Stock of Coupons representing 25. 0. 6. in value. Inasmuch as these presumably have never been issued, we think it unlikely that any liability will arise thereon. We suggest that the Committee pass a Resolution adopting the Coupon Stock Account as rendered.
 
Yours faithfully,
Agar, Bates, Neal & Co
The General Committee, at its meeting held on March 21st 1921, passed all the resolutions recommended by the auditors, thus ending the relationship between the Birmingham Corporation Savings Bank and Agar, Bates, Neal & Co, who were paid 42 per half-year for their work - work which must have been quite onerous given the Bank's complex coupon system and the inexperience of its staff.
 
The reward for Agar, Bates, Neal & Co was the award of the auditing contract for the Birmingham Municipal Bank for the 55 years from 1919 to 1974.
 
Birmingham Corporation
Savings Bank