B.—l [PT. IV], SUP. TO 1938.

NAVY DEPARTMENT. Income and Expenditure Account fob the Year ended 31st March, 1938. Expenditure. £ s. d. Income. £ s. dSalaries, pay, and allowances .. .. .. 269,070 19 9 Purchase of discharge .. .. .. 103 10 0 Fleet Air Arm .. .. .. .. '7,250 8 1 Rents of buildings .. .. .. .. 471 14 4 Clothing and victualling .. .. .. 54,404 19 6 Forfeited deferred pay .. .. .. 1,302 11 3 Medical services .. .. .. .. 2,574 1 2 Completion of Naval Armament Depot .. 226 14 9 New agreement, Auckland Harbour Board .. 31 10 0 Marine Department: re H.M.S. " Endeavour ".. 5,799 10 0 Repairs . . .. .. .. .. 60,999 3 1 Balance .. .. .. .. .. 629,104 15 3 Coal .. .. .. .. .. 5,142 9 0 Electricity .. .. .. .. .. 4,436118 Oil-fuel expenses .. .. .. .. 36,603 15 7 Naval stores .. .. .. .. 27,393811 Armament stores .. .. .. .. 49,996 12 5 Works at base .. .. .. .. 6,913 1 3 Completion naval base .. .. .. 303 13 6 Royal Naval Volunteer Reserve .. .. 12,827 8 3 Printing and stationery .. .. .. 2,129 011 Freight .. .. .. .. .. 14,855 8 6 Office fittings .. .. .. .. 47 9 2 Postages .. .. .. .. .. 1,910 14 5 Passages .. .. .. .. .. 11,268 7 4 Fees for training course in England and Australia 6,034 7 1 Miscellaneous effective services .. .. 2,746 12 1 Miscellaneous non-effective services .. .. 2,176 9 1 Deferred pay .. .. .. .. 48,701 17 0 Rental: Assessment .. .. .. 300 0 0 Depreciation .. .. .. .. 8,890 7 10 £637,008 15 7 £637,008 15 7 £ s. d. £ s. d. Balance brought down .. .. .. 629,104 15 3 Recoveries on account of expenditure of previous Interest on capital .. .. .. .. 19,322 17 2 years .. .. .. .. .. 11,180 14 0 Balance .. .. .. .. .. 637,246 18 5 £648,427 12 5 £648,427 12 5 Balance-sheet as at 31st March, 1938. Liabilities. Assets. £ s. d. £ s. d. £ s. d. £ s. d. Capital Account .. .. 534,957 3 3 Land .. .. .. .. 51,057 16 2 Employment Promotion Fund: Buildings .. .. .. 281,147 16 6 Contribution of Capital .. 9,281 13 4 Less Depreciation Reserve .. 27,555 8 6 544,238 16 7 253,592 8 0 Sundry creditors — Plant and fittings .. .. 96,916 11 9 Departmental .. .. 868 11 3 Less Depreciation Reserve .. 23,060 15 9 Others .. .. .. 23,513 8 7 73,855 16 0 24,381 19 10 Stores on hand .. .. .. 156,451 3 1 Amounts held on deposit— Departmental debtors .. . . .. 5 16 11 Radiograms .. .. 192 3 11 Deposits Account— Remittances .. .. 2,233 9 3 Radiograms .. .. 192 311 Deferred pay .. 93,330 9 9 Remittances .. 2,233 9 3 Naval savings-bank .. .. 13 0 0 Deferred pay .. .. 93,330 9 9 95,769 2 11 Naval savings-bank .. .. 13 0 0 95,769 2 11 Writings-off, Suspense Account .. .. 270 18 8 Assets in Suspense .. . . .. 270 18 8 Treasury Adjustment Account .. .. 603,589 22 Excess of expenditure over income .. 637,246 18 5 £1,268,250 0 2 £1,268,250 0 2 E. L. Tottenham, Naval Secretary. I hereby certify that the Income and Expenditure Account and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby, subject to the explanatory notes dealing with departmental accounts generally as appearing at commencement of parliamentary return 8.-l [Pt. IV]. —J. H. Fowler, Controller and Auditor-General.

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