18.—13,

4

The gross profits for the year ended 31st March, 1909, were £4,394 7s. Bd., and the cost of management and expenses of the Department £637 7s. 5d., being 0-18 per cent., or 2s. Bd. per £100 on the capital employed. The net profits amounted to £3,757 os. 3d. A sum of £1,552 17s. has been appropriated out of profits to the establishment of a sinking fund as required by section 56, (1), of " The Government Advances to Settlers Act, 1908." Under the provisions of the Act, all mortgages are prepared in the office free of cost to mortgagors, and the work has been done in a most satisfactory manner and without difficulty. P. Heybs, F.S.A.A.Eng., Superintendent. Government Advances to Settlers Office, Wellington, 26th May, 1909.

BALANCE-SHEET. Statement of Liabilities and Assets at 31st March, 1909.

Government Advances to Settlers Office, Wellington, 21st May, 1909. P. Heyes, F.S.A.A.Eng., Superintendent. W. N. Hinohliffe, Accountant. Examined and found correct, subject to the remark that the Sinking Fund shown as a liability has not been established by being set apart from the moneys of the Advances to Settlers Account and accounted for as a separate fund, the moneys required for such Sinking Fund not having been paid out of the Advances to Settlers Account, as directed by section 22 (c) of the Act. J. K. Wabbubton, Controller and Auditor-General. [The simple explanation of this is that the Sinking Fund is clearly accounted for in the books and balance-sheet of the Department as a separate fund, and that a transfer cf an amount from one account to another account in the books is equivalent to a transfer of cash. It is, moreover, impossible to transfer the cash for the amount to be paid according to the Act out of Interest Account into Sinking Fund Account within the year, because the amount, being 10 per cent, of the total interest received, cannot be ascertained until after the year has closed. —P. Heyes, F.S.A.A. Eng., Superintendent.]

Statement of Profit and Loss Account for the Year ended 31st March, 1909.

Liabilities. £ s. d. £ s. d. Assets. £ s. d. £ s. d. 3-per-cent. loans, redeemable 1st April, 1945,"A"and"B" 2,000,000 0 0 Sundry loans ..2,223,800 0 0 Advances on aocount of loans .. .. 935,000 0 0 Investment Account— Advances on mortgage .. .. 8,248,540 0 0 Less repayments .. 3,134,239 16 6 5,114,300 3 6 5,158,800 0 0 Accrued interest payable on deposits .. 19 16 11 Accrued interest payable on aocount of loans .. .. .. .. 15,743 6 8 Reserve Fund .. .. .. 50,000 0 0 Sinking Fund .. .. .. . 44,189 18 8 Suspense Account .. .. .. 2,221 i 1 Advances Suspense Account .. .. 24,798 18 5 Fire Loss Suspense Account .. .. 2,190 7 2 Profit and Loss Account .. .. 50,742 15 5 Mortgage instalments receivable—overdue .. .. .. .. 3,741 0 10 Interest receivable—overdue .. .. 14,325 1 8 Interest receivable —accrued .. .. 42,860 8 11 Bills receivable .. .. .. 128 10 7 Office Furniture Account .. .. 156 19 8 Insurance Premiums Accoum .. 106 13 8 Amounts transferred to Workers Branch 145,000 0 0 Gash in hand and in bank .. .. 29,834 19 1 Less unpresented cheques .. .. 1,747 10 7 28,087 8 6 £5,348,706 7 4 £5,348,706 7 4

Dk. 'o Management Expenses Account Loan-flotation charges for the year ended 31et March, 1909, written off Loss on realisation of security Balance —net profits for the year ended 31st Match, 1909 £ a. d. 9,969 11 7 782 7 5 92 0 5 63,835 19 3 Cβ. By Interest Account—gross profits Insurance premiums to 31st March, 1908, recovered Premium on Bale of debentures £ s. d. 71,574 15 7 91 8 1 3,013 15 0 £74,679 18 8 £74,679 18 8 Transfer to Sinking Fund.. Balance—net profits carried forward 20,530 18 8 50,742 15 5 Balance as at 31st March, 1908 Net profits for the year 7,437 14 10 63,835 19 3 £71,273 14 1 £71,273 14 1