Agar, Bates, Neal & Co next wrote on April 12th 1919:
Neville Chamberlain Esq.
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.
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.
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.
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.
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.
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.