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£1,357 lis. 6d., whilst we owe the sum of £3,818 10s. 2d., our principal creditor being the l\tw Zealand Government Advances Account. This position has arisen through a large fall in revenue, which was £5,164 13s. Bd. less in actual cash than was received for the previous year. In Customs duties alone we received £3,572 14s. Id. less than for the previous year. There was a large drop in copra duties (£463 10s lOd.) and High Court fees and fines (£347 12s. 3d.). The fall in revenue can be almost solely attributed to the heavy storm of the Ist April, 1926, mentioned in last annual report, which greatly affected the export of fruit, and correspondingly imports and Customs duties. On the expenditure side the storm reparation has been responsible for a considerable increase, even over the £1,000 granted from New Zealand. On the other hand, with increasing activities in various directions, such as medical services, education, superannuation, public works, &c., the yearly expenditure is steadily increasing. Prospects in regard to finance for the coming year are not bright, as the orange crop is again a very small one, and we are still faced with large expenditure on account of the heavy rains in December last, mentioned under the heading of " Meterorological." Details of revenue and expenditure for the year ended the 31st March, 1927, are set out hereunder :— Statement of Revenue and Expenditure for the Year ended 31st March, 1926. Revenue. £ s. d. Expenditure. £ s. d* Balance as at 31st March, 1926 .. 5,343 11 9 Aitutaki—Salaries .. .. .. 615 0 0 Grant from New Zealand on account of Aitutaki Wharf .. .. .. 355 17 2 losses by storms .. .. .. 1,000 0 0 Atiu —Salaries .. .. .. 60 17 6 Ammunition (profit on sales) .. .. 36 15 1 Audit Account .. .. . . 131 12 8 Benzine (profit on issues) .. .. 7 511 Agricultural classes .. .. .. 29 6 4 Copra export duty .. .. .. 1,760 810 Atiu cargo-shed .. .. . . 710 0 Customs duties .. .. .. 10,166 3 0 Contingencies .. .. .. 1,179 5 7 Cinema licenses .. .. .. 15 0 0 Courts .. .. .. .. 1,251 19 9 Cartage shooks .. .. .. 54 1 2 Dental Department .. .. .. 173198 Diving licenses .. .. .. 8 0 0 Education .. .. . , .. 1,252 2 3 Dog-tax .. .. .. .. 159 5 0 Experimental farm . . . . . . 298 410 Education, Northern Group .. .. 235 15 3 Freezer .. .. . . .. 334 0 7 Fruit-inspection fees .. .. .. 1,047 10 2 Furniture .. .. .. .. 515 7 1 Film-censorship fees .. .. .. 12 5 9 Freezer—New building .. .. 1,643 15 1 High Court fees and fines .. .. 1,127 1 6 Fruit-storage shed . . . . . . 101 19 9 Hall licenses.. .. .. .. 8 0 0 Government buildings . . .. 1,005 11 7 Liquor (profit on sales) .. .. 189 18 7 Governor-General's visit .. .. 549 12 3 Marriage fees .. .. .. 43 1 0 Hospital .. .. .. .. 3,303 711 Motor fees .. .. .. .. 125 10 0 Hospital—New building .. . : 389 1 6 Native Land Court fees .. .. 146 14 6 House—Assistant Medical Officer .. 96 10 8 Passport fees .. .. .. 21 13 0 Lepers .. .. .. .. 541 0 0 Post-office box rents .. .. .. 8 3 6 Lunatics .. .. .. .. 130 11 2 Rents .. .. .. .. 270 16 8 Mangaia—Salaries .. .. .. 501 0 0 Road rates . . .. .. .. 96 0 6 Manihiki and Rakahanga—Salaries .. 277 10 0 Shipping fees .. .. .. 416 0 Mauke—Salaries .. .. ... 346 0 0 Stamp sales .. .. .. .. 1,306 12 0 Mitiaro —Salaries .. .. .. 83 0 0 Stock, P.W.D. (profit on issues) .. 018 6 Penrhyn—Salaries .. . . .. 320 0 0 Trading licenses .. .. .. 776 10 0 Police .. .. .. .. 1,104 6 6 Water rates .. .. .. .. 439 8 0 Post-office .. .. ~ .. 329 4 9 Wireless .. .. .. .. 35 17 6 Printing .. .. .. .. 31 7 3 Prisoners .. .. .. .. 129 10 11 Public works .. .. .. 750 11 5 Pukapuka—Salaries .. .. .. 400 6 4 Resident Commissioner's Office .. 1,569 9 6 Roads, bridges, culverts, and foreshore .. 1,824 8 0 Subsidy, flying-foxes and rats .. .. 132 14 10 Superannuation .. .. .. 250 2 8 Telephones .. .. .. .. 3 3 7 Treasury and Customs . . .. 681 1 1 Trucks .. .. .. .. 246 7 2 Water .. . . . . .. 577 12 5 Whare Manuhiri .. .. .. 361 10 5 Total expenditure . . .. 23,886 0 2 Fruit-case accounts, written off 417 6 7 24,303 6 9 Balance as below . . .. 143 16 5 £24,447 3 2 £24,447. 3 2 Particulars of Balance. £ s. d. Cash in hand .. .. .. .. .. .. 272 17 3 Cash in bank .. .. .. .. .. .. 33 9 8 Cash in hands of Resident Agents .. .. .. .. 4169 Stocks on hand .. .. .. .. .. .. 2,257 1 5 £ s. d. 2,604 15 1 Amounts due by C.IA. .. .. .. 3,818 10 2 Less amounts due to C.1.A... .. .. 1,357 11 6 2,460 18 8 Balance as above .. .. .. .. .. £143 16 5

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