£).'—K .. 7;

progressive improvement and experience of those countries whore it has boon thought necessary to establish effectual safeguards against tho misappropriation of public revenues. In the United Kingdom the national revenues are paid into the Exchequer, from which they can bo issued only on an order from the Crown. The Royal orders specify the particular grant out of which the issues are to be made. But the Treasury does not require the Exchequer to issue the money at once. When an actual issue is required, it authorizes the Comptroller of the Exchequer by warrant to give a credit at the Bank of England for the sums required. No issue from the Exchequer is made in excess of the A'otes of Supply; and the savings on the votes as determined in each year are reappropriated by the Legislature in the subsequent year. Until within the last year the moneys issued out of tho Exchequer passed altogether out of the control of that department of the State. It was left to the Commissioners of Audit, acting under the directions of the Treasury, to determine whether the money was expended in accordance with the directions of the Treasury. This was really no check on the operations of the Treasury. For many years past the attention of the Legislature has been called to the subject by the Comptroller of the Exchequer. It was not until about a year since that an Act was passed placing the Commissioners of Audit in a somewhat more independent position, by making the Comptroller of the Exchequer, who is one of the high functionaries of State, the Chairman of the Board of Audit; so that now in England the same officer who controls the issue of public moneys sees that they are appropriated in strict accordance with the A'otes of Supply. Iv Canada all public moneys, from whatever source of revenue derived, arc paid into a bank appointed by the Governor in Council to the credit of the Receiver-General of the Province. The expenditure of moneys out of the " Public Account " can be made only by check on the bank, signed by the Receiver-General, and countersigned by tho Minister of Finance, or "their respective deputies. The Board of Audit and Control consists of the Deputy Inspector-General, the Commissioner of Customs, and the Auditor. The Deputy Inspector-General acts as Comptroller over the issue of public moneys, and audits the accounts connected with the Administration of Justice, and the Customs and Excise accounts. The Commissioner of Customs examines the returns of the officers of Customs and Excise. The Auditor audits the remaining accounts of the receipts and expenditure of public moneys, including Militia Accounts, Saving Bank Accounts, aud the accounts of all institutions which draw their support from public moneys. The whole of the above accounts are afterwards revised by the Board. In the Colony of A'ictoria the Receivers of Public Revenue are required to pay daily all moneys which come into their possession into the " Public Account " at a bank appointed by tho Governor in Council, and the moneys so deposited can be transferred to the credit of the Colonial Treasurer, only on requisitions countersigned by the Commissioners of Audit, and approved by the. Governor. The Commissioners of Audit, (three iv number) —two of whom must act in each case—are thus the Comptrollers of the issue of the public revenues, securing, in the first instance, that no moneys are issued to the Treasury in excess of the Parliamentary Grants, and afterwards as Auditors of Public Accounts, taking care that the moneys so issued tire really applied in accordance with the votes. This practice is nearly the same in principle as that in Canada. There is, however, this additional and important difference that the Commissioners of Audit are required to report for the information of Parliament their objections, if any, to the Treasurer's annual statement of the receipt and expenditure of the Public Revenue. In New Zealand much attention has of late years been given by the Legislature and the Executive of the Colony to the regulation, custody, and expenditure of the Public Revenues. The Audit Acts require the Colonial Treasurer to transmit to tho Auditor of Public Accounts, for examination, an annual statement of the Receipts and Expenditure of the General Government and requires the statement to be laid before the House of Representatives for the final audit of a Select Committee of the House of Representatives. In addition to the Audit Acts, the General Assembly passed in the last session an Act for tho appointment of a Comptroller, and for securing the payment of the Colonial Revenues into a bank to llie credit of a " Public Account," which can be operated upon only in the same way as the "Public Account " of the Colony of Alctoria. The Legislature has thus provided the. means of effectually controlling the issue of public moneys. At present the gross collections of Revenue are paid daily into a bank to the credit of the Colonial Treasurer, but not into the " Public Account," as required by the Comptrollers' Act—the Colonial Treasurer thus continuing to hold sole control over the issue of the Public Revenues. This, connected with the fact that the whole of the payments at the Sub-Treasuries are made without Iho previous warrant of the Governor, leaves a large portion of the issues of public moneys without any of the check required by- law. The Collectors of Revenue account to the Colonial Treasurer in AVellington directly, and in the Provinces through his agents the Sub-Treasurers. The Reveuue Accounts, when received at the Treasury, instead of being blended in one account, are forwarded separately to tho Auditor of Public Accounts for examination. Claims, when approved by tho respective Ministers, are paid on the certificate of the office authorized to incur the expenditure ; but, beyond tho rule which requires the approval of a Minister for expenditure not provided for by the Estimates, there is nothing to limit expenditure in excess of the appropriaf ions. Tho Sub-Treasurers are provided with funds by- the Colonial Treasurer. The Sub-Treasurers render weekly accounts of their transactions. These, supported by vouchers, aro forwarded separately to the Auditor. The Treasury thus throws upon the Auditor tho work of

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REPORT OF TIIE CIVIL