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officers belonging to the same Department in the same town purchased similar goods from two different traders, at different rates, although the vendor whose rates were lowest could easily have supplied both orders. Overcharging and Excessive Profit. 74. In Great Britain the Treasury employs Accountants — experts in costaccounting —to examine the suppliers' books and check claims. It is suggested that some such power should be definitely provided by statute with a view to check overcharging or excessive^profit. Costing. 75. In view of the increasing activities of State Departments, the importance of keeping proper cost accounts cannot be too strongly emphasized. Without such records it is impossible to establish a proper check upon the wages paid and raw material purchased, or to accurately establish the cost of each article or job. In some Departments haphazard methods exist, and an analysis of estimates and returns occasionally discloses that administrative and other charges are not added to the prime cost, which makes them, useless as a test of efficiency. 76. A trading concern which ignored indirect expenditure would sooner or later become bankrupt. Accounting officers should be held responsible for ensuring that proper cost records are kept and harmonized with the financial records of their respective Departments. Free Issues in Kind. 77. The practice of authorizing free issues in kind in addition to salary is one which lends itself to abuse as an irregular means of increasing an officer's remuneration. The Public Service Act provides that the salary of every officer shall be shown, and, where allowances in kind are made unknown to the Commissioners, the full facts concerning the remuneration of the individuals so benefiting does not appear in the estimates of expenditure. He policy of the Commissioner has been to discourage allowances of this nature, but his control over issues in kind is so undefined as to enable such issues to be made unknown to him. 78. It was recently ascertained that certain officers of the State Coal Department had been receiving free issues of coal, and that officers of the Public Works Department in one district had been assuming that they had a right to free issues of coal when engaged on construction work. The latter case is one which is reported to have resulted in a heavy annual loss in one district alone. The result of inquiry into the matter cannot be said to have been satisfactory. The Department has, however, informed the Commissioner that it is intended to take steps to recover payment from the officers known to have received free coal. One officer was dismissed. Custody of Stamped Documents. 79. It was found necessary to direct attention in some offices to the necessity for care in filing stamped documents, which are a constant temptation to stampcollectors. The fact that cancelled stamps of large denominations possess a potential value was not always recognized. Stores and Supplies. 80. The Commissioners have on more than one occasion referred to the desirability of establishing a Central Store or Purchasing Department. At present there are too many purchasing Departments, thus introducing an undesirable element of competition, which is particularly noticeable when supplies are difficult to obtain. Sufficient regard is not had to the fact that' some Departments can supply certain articles, and yet these, when urgently required, are sometimes purchased in the retail market and the advice of recognized experts in the employ of the State is not taken. The establishment of some central system of control is advisable.