8.—13.

ADVANCES TO SETTLERS OFFICE ACCOUNT. Statement of Receipts and Expenditube for the Year ended 31st March, 1905. Dr Receipts. &b d. Cβ. Expenditure. £ c. d S5-™ refunded :: Pald * * '"EI? Assurauoe Fund, Pub, . lo ».** „ 6 £X S SSSnr :: :: -c.™ * » Egysss «. p.- M 4418 4 *™ -— . : M 3; s Interest on temporary investments 449 15 8 Sinking F.md investment ,uh Public g 4 Temporary advance on account of TemDOrarv investment refunded .. 'J ,393 15 7 Valuation fees 1,487-19 9 ___ 10 0 5589,463J0_0 Government Advances to Settlers Office, ' P. Heyes, F.S.A.A., Bng., Superintendent. 3rd May, 1905. W. N. Hinchliffe, Accountant. The SuPEBiNTBKDBNT.-Where is the balance-sheet itself under section 50 of •■ The Advances to Settlers Act, 1894? "-J. K. Wabburton, Controller and Auditor-General, 17/6/05. The Contbolleb amd AuDiTOE-GENERAL,-This is the balance-sheet under section 501 of •< The Government Advances to Settlers Act, 1894," submitted for audit certificate.-P. Heyes, Superintendent, 21/6/5. , , The Superintendent-Do you really regard these statements or any of them as a balance-sheet ? —J X Warburton, Controller and Auditor-General, 21/6/5. The Controller and AuDiTOR-GsNERAL.-Yes, I do regard this as a correct balance-sheet.-P. Heyes, Superintendent, 21/6/05. J. K. Warbubton, Controller and Auditor-General. Eepobt of the Audit Office on the Statements submitted for its Certificate as the Balancesheet under Section 50 of "The Government Advances to Settlers Act, 1894. Certified in accordance with the provisions of the Public Revenues Act, subject to the follow ing *g^ B ;- submitted d 0 n ot fulfil the requirements of section 50. They do not exhibit a balance-sheet showing the whole receipts and expenditure of the Advances to Settlers Ofhce Account of the Management Account, and of the Investment Account. The statement submitted of the receipts and expenditure for the year is correct in showing the whole receipts and expenditure which subsection (1) of sect.on 50 requires the balance-sheet to show of the Advances to Settlers Office Account dnnng the year. thpwrl nlp Instead of showing in the Management Account, kept as directed by the Act the whole receipts and expenditure which subsection (2) requires the balance-sheet to show of that account, such whole receipts and expenditure, less £1,056 9s. 3d. in both the receipts and expenditure, are shown in statements submitted of three accounts not required by the section-namely, a Management Exoenees Account, an Interest Account, and a Profit and Loss Account; and the aggregate Sedit to?hese accounts exceeds the amount credited to them of the actual receipts o the Management Account by £36,369 19s. 4d., as the result of entries made in respect of all overdue and accrued interest except the amount accrued of interest payable m respect of he loans raised by the Government for the purpose of the Debenture Fund. Of this amount of £36,369 19s 4d £6 369 19s 4d. appears in the Statement of Liabilities and Assets as a liaoil.ty to Profit and Loss Account, and £30,000 is the amount which was unlawfully applied in 1902 in writing down the loan-flotation charges entered as an asset. loa The Thole receipts and expenditure which subsection (3) requires the balance-sheet to show of the Investment Account are not shown, nor is there any entry of the balance available for investment of £37,893 10s. 2d., which stood at credit of such account at the close of the year, In the Statement of Liabilities and Assets, the amount of the liabilities entered m respect of loans exceeds the amount received from the Government or the Colonial Treasurer as the proceeds of such loans by £208,466 3s. ; and this deficiency, less £30,000 written off in the Profit and Loss Account as already explained, is entered under the head of " Assets. . The whole receipt! and expenditure of the Advances to Settlers Office Account during the year having been-receipts, £574,485 os. Id. ; expenditure, £549,086 19s. 7d., to be brcugnt to .account in— . Receipts. Expenditure £ 8. d. £ a- d. The Management Account 139,032 4 5 139,032 4 5 The Investment Account ... ... 421,081 2 7 394,532 6 4 The Bills Receivable Account ... o0 0 0 „- „.,„ The Suspense Account 14,321 18 1 __!____l £574,486 5 1 £549,086 19 7

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