B.—l [PT. IV], SUP. TO 1940.

NATIVE-LAND-DEVELOPMENT SCHEMES. Interest Account for the Year ended 31st March, 1940. Dr. £ Or. £ Interest on loan capital .. .. .. .. 71,746 Interest on amounts expended on development schemes Interest on advances from Consolidated Fund under and advances to units .. .. .. .. 92,783 section 8, Finance Act, 1929 .. .. .. 200 Interest on advances under section 340, Native Land Balance, transferred to Revenue Account .. .. 23,719 Act, 1931 (Maori Land Boards) .. .. .. 194 Interest on advances under section 521, Native Land Act, 1931 (Native Trustee) .. .. .. 2,287 Interest on advances under seotion 48, Native Land Amendment Act, 1936 (Native settlers) .. .. 383 Interest on Oturei Mortgage .. .. .. 18 £95,665 £95,665 Revenue Account for the Year ended 31st March, 1940. Dr. £ £ Or. £ Depreciation— Balance, transferred from Interest Account .. .. 23,719 Departmental motor-vehicles .. .. .. 201 Departmental surveyor's equipment .. .. 17 — 218 Balance, transferred to Net Revenue Account .. .. 23,501 £23,719 £23,719 Net Revenue Account for the Year ended 31st March, 1940. Dr. £ Or. £ Balance, 31st March, 1940 .. .. .. .. 38,505 Balance, Ist April, 1939 .. .. .. .. 6,069 Balance transferred from Revenue Account .. 23,501 Previous year's profits on bulk purchases .. .. 8,888 Adjustment on account of previous years .. . . 47 £38,505 £38,505 Balance-sheet as at 31st March, 1940. Liabilities. £ Assets. £ £ Loan capital: Public Works Fund .. .. 1,950,497 Native-land developmentLiability to Consolidated Fund— £ Settlement expenditure, including interest 2,075,825 Advance under section 8, Finance Act, Advances under section 48, Native Land 1929: Principal .. .. .. 2,300 Amendment Act, 1936 .. .. 8,087 Interest on loan capital .. .. 86,606 Interest accrued .. .. .. 70 88,906 2,083,982 Sundry creditors-— Advances— Departmental .. .. .. 16,180 Native Trustee under seotion. 521, Native Miscellaneous .. .. .. 35,892 Land Act, 1931 .. .. .. 52,527 Employment promotion grant unexpended 32,889 Interest accrued .. .. .. 1,116 84,961 53,643 Writings-off in Suspense .. .. .. .. 5,566 Maori Land Boards under section 340, Net Revenue Account-— Native Land Act, 1931 .. .. 4,867 Balance, Ist April, 1939 .. .. 6,069 Interest accrued .. .. .. 69 Plus— —-— 4,936 Excess income over expendi- £ Oturei Block .. .. .. 273 ture, 1939-40 .. .. 23,501 Interest due and accrued .. .. 5 Previous year's profits on 278 bulk purchases .. .. 8,888 Departmental motor-vehicles .. .. 75 Adjustment on account of Surveyors' equipment .. .. 212 previous years .... 47 287 32,436 Sundry debtors—■ 38,505 Departmental .. .. .. 350 Miscellaneous .. .. .. 15,618 Advances to Maori Land Boards (instalments principal, £2,455; interest, £1,320) .. .. .. .. 3,775 19,743 Losses in Suspense .. .. .. .. 5,566 £2,168,435 £2,168,435 Note.—As from Ist April, 1936, administration expenses have been charged to the Consolidated Fund, and are not included in the above account. 0. N. Campbell, Under-Secretary. M. J. Lawless, A.R.A.N.Z., 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 explanatory notes dealing with departmental accounts generally as appearing at commencement of parliamentary return 8.--1 [Pt. IV] and to the following comments : (1) The loading of the various schemes for administration expenses is not sufficient to cover the full cost; (2) moneys expended out of the " Surveys of Native Land Account " on Native-land-development schemes have not been recouped ; (3) in the opinion of the Audit Office, expenditure from the Public Works Fund on Native-land-development areas incurred prior to the assumption of control by the Native Department and included in the Crown lands Balance-sheet should be reflected in the accounts of the Native-land-development schemes. —J. P. Rutherford, Deputy Controller and Auditor-General.

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