69

8.—9

1927. It should be added that great care has been taken to see that the undertaking of these important duties by the Public Trust Office is not allowed to impair or lower in any way the standard of service hitherto enjoyed by clients and beneficiaries of the Public Trustee. Special steps have been taken to provide additional staff to cope with the increased duties imposed, and it can confidently be stated that the interests of the clients and beneficiaries of the Public Trust Office have not suffered in any way through the undertaking of the duties by the Public Trustee on behalf of the Rural Intermediate Credit Board. INSPECTIONS. 159. When dealing with the organization of the Office I made reference to the supervision exercised over the work delegated to the branches. When the establishment of self-contained branches throughout the country to conduct the actual work of administration was inaugurated it was necessary to provide also for inspection and review of the work of these branches. This system of inspection forms a most important part of the internal check of the Office, which in dealing with estates and funds valued at over £53,000,000, and investments totalling over £33,000,000, must be strict and effective. The system which has been in operation for some years past has proved itself adequate, and has been maintained without alteration or modification throughout the year. The inspections are conducted by a staff of officers conversant with and experienced in all phases of the work of the Department, and ensure that the internal regulations are conformed to, that a high standard of work is maintained, and at the same time keep the Head Office in close touch with the branch work and with conditions throughout New Zealand. During the year the system of inspection and review was extended to cover the rural intermediate credit work, in regard to which the Office acts in the capacity of agent for the Rural Intermediate Credit Board throughout the Dominion. The system of review and inspection is classified as follows:— (a) General inspections, covering the internal working and machinery of the Office: (b) Review of administration of estates, funds, and investments : (c) Internal audit and inspection of accounting work and systems. 160. General Inspections.-—These inspections have been regularly carried out during the year, and the permanent branches of the Office have been visited in rotation. The inspections are directed towards the general working of the Office, and all internal arrangements, covering management, control, organization, staffing, and accommodation receive consideration. The work of all officers is investigated, and a study made of their capacity and suitability for the work upon which they are engaged. During the visit of the inspecting officers opportunity is taken by the district officers of discussing major problems arising in the course of the work, and the experience and advice of the inspecting officers are of value to them in the conduct of such matters. The Inspectors form a connecting-link between the Head Office and the branches, and the inspections do a great deal towards facilitating the working between them. Inspections are made of all offices as the volume of the work and any special circumstances render necessary. During the year fifteen of the twenty-one District Public Trustee offices and eight of the eleven District Manager offices were inspected, either by the Chief Inspector or by his assistant, and all necessary action arising out of these inspections has been taken. I have already pointed out that in the smaller towns of importance the Office has agencies conducted on a commission basis by local business men. These agencies are under the control of the District Public Trustees in whose districts they are situated, and, apart from visits from responsible officers from Head Office as occasion requires, the controlling District Public Trustees periodically inspect and report to the Public Trustee on the conduct of the work of the agencies. 161. Review of Administration of Estates and Investment Work.—Upon adoption of the policy of decentralization there was put into operation a system whereby the administration of all estates and funds was subjected to searching review by officers experienced in both administration and accounting work. Since the extension to the investment work also of the policy of decentralization the conduct of this side of the Office business has been brought under the scrutiny of the Reviewing