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ADVANCES TO SETTLERS OFFICE ACCOUNT.

Statement of Beceipts and Expenditui Dk. Receipts. £ s d. To Cash in hand and in bank at 31st March, 1905 .. .. .. 40,376 10 5 Bills Receivable Account .. .. 110 0 0 Consent fees .. .. .. 12 15 0 Dishonoured cheques repaid .. 966 7 3 Insurance premiums refunded .. 296 14 8 Interest on Assurance Fund, Public Trustee .. .. .. 3,215 16 10 Interest on bank balances.. .. 438 16 9 Interest on mortgages .. .. 127,053 12 6 Interest on Sinking Fund, Public Trustee .. .. ... 5,059 19 7 Interest on temporary investments.. 184 0 0 Mortgages and instalments repaid .. 261.381 211 Mortgage forms .. .. .. 130 6 0 Production fees .. .. .. 183 18 0 Public Trustee refunds— Assuranoe Fund .. .. 159,980 2 5 Debenture Sinking Fund Investment Account .. .. 371,381 2 1 Registration and searoh fees .. 19 8 0 Release fees .. .. .. 223 15 6 Sundries .. .. .. 136 5 7 Suspense Account .. .. 21,636 14 6 Temporary investment—Bank of New Zealand stock realised .. .. 4,688 1 3 Temporary advances on account of loans .. .. .. .. 210,000 0 0 Valuation fees .. .. .. 3,114 13 7 £1,210,590 2 10 Government Advances to Settlers Office, Wellington, 14th May, 1906.

re for the Year ended 31st March, 1906. Or. Expenditure. £ a. d. By Accident insurance, " globo " cover 81 13 3" Advances on mortgage .. .. 633,452 13 6 Advertising .. .. .. 7 0 0 Assurance Fund investment with Public Trustee.. .. .. 34,25.5 6 11 Audit Department .. .. 200 0 0 Dishonoured cheques .. ~ 966 7 3 Insuranoe premiums paid .. .. 300 5 2 Interest on deposits .. .. 64 3 8 Interest on loans.. ... .. 97,200 10 6 Post Ofnoe services .. .. 800 0 0 Printing and stationery .. .. 265 0 2 Registration and search fers .. 30 0 0 Release fees, &0., refunded .. 4 6 0 Salaries .. .. .. ... 3,397 19 0 Sinking Fund investment with Public Trustee .. .. .. 261,381 2 1 Sundries.. .. .. .. 185 11 Suspense Account .. .. 11,681 13 5 Valuation Department— £ s. d. Fees .. .. 2,924 1 7 Agency work ~ 250 0 0 3,174 1 7 Valuation fees refunded .. .. 110 12 3 Cash in hand and in bank at 31st March, 1906 .. .. .. 163,031 16 5 £1,210,590 2 10 P. Heyes, F.S.A.A., Eng., Superintendent. W. N. Hinchliffe, Accountant.

Certified in accordance with the provisions of the Public Bevenues Act, subject to the following remarks :— 1. This balance-sheet, like the balance-sheet of the previous year, is not, and cannot be certified as, the statutory balance-sheet—that is, as the balance-sheet which the Superintendent is authorised and required by section 50 of " The Government Advances to Settlers Act, 1894," to prepare and lay before Parliament, showing the whole receipts and expenditure of the Advances to Settlers Office Account, of the Management Account, and of the Investment Account. 2. The " Statement of Beceipts and Expenditure for the Year " does not correctly show the whole receipts and expenditure which sub-section (1) requires the balance-sheet to show of the Advances to Settlers Office Account. Entered among the receipts are two items, " Interest on Assurance Fund, Public Trustee, £3,215 16s. 10d.," and "Public Trustee Befunds—Assurance Fund, £159,980 2s. 5d." The moneys of the Assurance Eund Account in the Public Trust Office are invested not under the Government Advances to Settlers Act, but under the Public Trust Office Act, and the smaller of the foregoing items is for interest which had been credited by the Public Trustee to such account, but which he had no authority to pay, and did not pay, to the Superintendent, except in accordance with the provisions of section 2 of the Amendment Act of 1905, as moneys for reinvestment on mortgage under the principal Act as part of the Debenture Fund ; and it is included in the larger amount which was one of receipts under those provisions. The smaller amount was not an additional receipt. 3. Then, under the head of expenditure is the item " Assurance Fund Investment with Public Trustee, £34,255 6s. lid." This should be the amount which the Superintendent paid under section 53 of the Act, as the balance standing to the credit of the Management Account on the 31st March, 1906, into the Assurance Fund Account kept by the Public Trustee. The amount of the actual payment was £31,039 10s. Id., or less by £3,215 16s. lOd. than the item as entered. And so both the receipts and expenditure of the Advances to Settlers Office Account are overstated by this amount of £3,215 16s. lOd. 4. The whole receipts and expenditure which subsection (2) requires the balance-sheet to show of the Management Account are not correctly shown, either in one Management Account credited and charged as prescribed by the Act, or in the substituted Profit and Loss Account embracing a Management Expenses Account and an Interest Account. This Profit and Loss Account has been credited, as " Interest on Assurance Fund, Public Trustee," with the amount not so received of of £3,215 16s. 10d., and has, on the other hand, not been charged with the sum of £31,039 10s. Id. paid out of the Management Account into the Assurance Fund. The overcredit here is thus £34,255 6s. lid. It has moreover received, in respect of interest overdue and accrued, an addition of £36,317 ss. 6d. to its credit balance. The aggregate result is that the Profit and Loss Account has been given a credit balance exceeding by £70,572 12s. sd. the credit balance arising from the actual cash receipts and expenditure of the Management Account, thus :—