B.—l [Pt. IY].

I hereby certify that the Balance-sheet and accompanying accounts have been duly examined and compared with the relative books and documents submitted lor audit, and correctly state the position with the following exceptions :— (a) In the opinion of the Audit Office the provisions of section 10, State Supply of Electrical Energy Act, 1917, have not been observed, inasmuch as the Depreciation Reserve has been used for the general purposes of the undertaking instead of being employed for the establishment of a Depreciation Fund. (b) There is no authority of law for the charging against Net Revenue Account of interest in respect of Depreciation Reserve moneys employed for the general purposes of the undertaking. Note.—With regard to the foregoing exceptions the Finance Act, 1926, now contains provision for the moneys of the Depreciation Reserve to be used for the purposes of the scheme instead of being separately invested. (c) The Balance-sheet does not disclose the assets representing the full amount of the Sinking Fund.— Gr. F. C. Campbell, Controller and Auditor-General.

ELECTRIC SUPPLY ACCOUNT— continued. LAKE COLERIDGE HYDRO-ELECTRIC-POWER SUPPLY— continued. Balance-sheet at 31st March, 1926— continued.

43

1924-25. Liabilities j 1925-26. 1924-25. i Assets. \ 1925-26. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. 1,096,261 0 0 Brought forward .. .. .. 1,464,931 0 8 874.517 18 4 Brought forward .. .. .. 1,197,609 7 6 8,910 7 3 Service transformers and meters .. .. .. 7,Oo3 9 6 7,171 4 8 Motor-cars, lorries, and cycles, &c. .. .. .. 9,460 18 4 107 9 4- Test-room equipment .. .. .. . . 108 5 4 14,870 18 10 Loose tools, plant, and equipment .. . . .. 17,846 3 11 ! 1, 729 3 9 Public telephones to the lake .. .. . . 1,729 3 9 Telephones to Christchurch City Council and 173 19 1 Tramway Beard and local offices.. .. 173 19 1 252 16 9 Christchurch office —Furniture and fittings .. .. 255 1 0 Engineering, office, and general expenses on 32,444 .17 1 preliminary surveys and during construction .. 47,030 10 9 Salaries of Engineers and others on preliminary 31,796 19 2 surveys and during construction .. .. .. 35,152 17 11 36,515 3 10 Interest during construction . . .. 14 4 1,008,490 18 1 1,366,950 11 5 46,695 5 11 Stocks of material, &c., on hand at date .. .. 69,504 16 11 Telephone subscriptions, fire insurance, &e., 136 8 4 paid in advance .. .. .. .. 162 13 6 Sundry debtors— 22,837 3 0 For current, rent, work carried out, &c. .. .. 28,312 18 10 Amount misappropriated by clerk in Christ362 5 10 church office | 1,078,522 1 2 Balance from Profit and Loss Appropriation 17,738 18 10 Account 1,096,261 0 0 £1,464,931 0 8 £1,096,261 0 0 £1,464,931 0 8