B.—l [Ft. IV

DEPARTMENT OF AGRICULTURE. NAURU AND OCEAN ISLANDS ACCOUNT. Revenue Account for the Year ended 31st March, 1940. Dr. £ Cr. £ Interest on debentures .. .. .. .. 10,382 Annual payment from British Phosphate Commission Administration and management charges .. 532 (in sterling) .. .. ~ .. .. 35 848 Audit fee .. .. .. .. .. 5 Exchange on annual payment .. .. .. 8,738 Balance to Appropriation Account .. .. .. 33,667 £44,586 £44,586 Appropriation Account eor the Year ended 31st March, 1940. £ £ Redemption of debentures .. .. .. .. 33,445 Balance, Ist April, 1939 .. .. .. .. 24,616 Balance .. .. .. .. .. 24,838 Revenue Account: Balance transferred .. .. 33,667 £58,283 £58,283 £ Balance, 31st March, 1940 .. ' .. .. .. 24,838 Balance-sheet as at 31st March, 1940. Liabilities. £ Assets. £ Debentures at 3J per cent. .. .. .. .. 284,405 Share (16 per cent.), Nauru and Ocean Islands phosphate £ rights (at cost) .. .. .. .. .. 565,040 Interest accrued but not due .. .. 2,045 Proportion of annual payment from British Phosphate Administration and management charges accrued 4 Commission accrued but not due .. .. .. 26,886 2,049 Cash : Loans Redemption Account .. .. .. 1 Reserve Account .. .. .. .. .. 280,635 Appropriation Account .. .. .. .. 24,838 £591,927 £591,927 Note.—(l) New Zealand's share of the profits earned by the Commission has been used for capital developments, but is not included in these accounts ; (2) the accounts of the British Phosphate Commission for the year ended 30th June, 1939, are published herewith. L. C. Scott, Accountant. I hereby certify that the Revenue 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 departmental notes enfacod thereon. —Cyril 6. Collins, Controller and Auditor-General.

THE BRITISH PHOSPHATE COMMISSIONERS. Trading Account eor the Year ended 30tii June, 1939. Dr. £ Cr. £ F.o.b. cost of phosphate, including interest on capital, Phosphate sales and sundry credits, less freight and contribution to a sinking fund for the redemption of insurance, &c. .. .. .. .. .. 909,027 capital, and other charges in accordance with Article 11 of the agreement of the 2nd July, 1919 .. .. 906,133 Balance .. .. .. .. .. .. 2,894 £909,027 £909,027 £ £ Balance carried forward .. .. .. .. 17,918 Balance brought forward at Ist July, 1938 .. .. 15,024 Balance for the year ended 30th June, 1939 .. .. 2,'894 £17,918 Balance-sheet, 30th June, 1939. Liabilities. £ Assets. £ United Kingdom Government .. .. .. 1,310,761 Nauru and Ocean Island phospfiate rights, buildings Commonwealth Government .. .. .. 1,310,761 and plant, ships, investments and deposits, less New Zealand Government .. . . .. 499,338 reserves for depreciation and other charges in accordance with Article 11 of the agreement of the 2nd July, 3,120,860 1919 .. .. .. .. .. 3,119,403 Sinking fund for redemption of capital .. .. 410,640 Sundry debtors and phosphate on consignment .. 445,883 Sundry creditors and outstandings .. .. 587,848 Voyages in progress .. .. .. .. 4 100 Trading Account balance .. .. .. 17,918 Phosphate and goods in transit .. .. .. 153,776 Stocks at Nauru, Ocean Island, and elsewhere .. 366,502 Cash at banks and in hand .. .. .. 47,602 £4,137,266 £4,137,266 We have examined the foregoing Balance-sheet with the books and vouchers of the British Phosphate Commissioners and the audited accounts from London. We have accepted the certificates of officers of the Commissioners for the valuation of the stocks. We have obtained all the information and explanations wo have required. In our opinion the Balance-sheet is properly drawn up so as to exhibit a true and correct view of the state of the Commissioners' affairs according to the best of our information and the explanations given to us and as shown by the books of the Commissioners.

Kent, Brierley, and. Fisher, Chartered Accountants (Aust.), Auditors.

Melbourne, Isth November, 1939. 2—B. 1 [PT. IV.]

5