H—44

PART IV.—OTHER DEPARTMENTAL ACTIVITIES SECTION I.—ACCOUNTS SECTION, INCLUDING MINISTRY OF SUPPLY, STOCK DISPOSALS, AND DEPARTMENTAL ACCOUNTING 159. Following the separation of tlie Department of Industries and Commerce from the Department of Tourist and Health Resorts, the Accounts Section has been reorganized in keeping with the reconstitution of the Department. During the past year the Section has been responsible for the accounting procedure of both the Ministry of Supply and of the Department of Industries and Commerce. 160. The work of both these branches is dealt with separately hereunder (a) Ministry of Supply (i) Accounting 161. A total of 146 vessels carrying materials ordered by the Ministry of Supply arrived in New Zealand during the year under review, and this entailed the costing and charging out of some four thousand lines. Expenditure on Ministry of Supply procurement aggregated slightly over £9,000,000. Cash receipts over the same period totalled £9,040,124, and sundry debtors were reduced from £3,451,029 as at Ist April, 1946, to £861,487 as at 31st March, 1947. 162. As is usually the case, delay in the receipt of expenditure vouchers from our overseas offices resulted in a time-lag in finally bringing to charge in the accounts the costs of goods purchased overseas, including procurements both for cash and under lend-lease, and Canadian mutual aid. Goods obtained under these schemes were charged out to the recipients upon receipt, mainly in previous years, but the final accounting entries were not completed in the records of the Ministry of Supply until the 1946-47 financial year. The debits under these headings included expenditure for the year on U.S. Lend-lease, £1,654,554, and Canadian mutual aid, £55,765, a total of £1,710,319. 163. In addition to the normal duties of handling and procurement under indent and reserve stock items, other specific purchasing activities have included transactions on behalf of UNRRA, Netherlands East Indies Government, and British Military Government in Far Eastern Territories. In all cases the expenditure incurred was charged originally to the War Expenses Account and has been recovered and credited to that account. 164. The Stock Disposal Section has been engaged in winding up contracts let during the war period for the supply of textile equipment for the armed Services. Expenditure under this activity has amounted to £812,145 for the year under review, whilst the recoveries from the Service Departments for the same period have totalled £874,765. (ii) Stock Disposals Section 165. During the past year the number of stores under the control of the Department have been reduced from twelve to five, representing a reduction in the area occupied from 370,000 square feet to 163,000 square feet. Every effort is being made to effect the speedy liquidation of the remaining Ministry of Supply stocks, and it is anticipated that further clearances should enable the Department to confine its storage requirements to a minimum of space in Wellington and Auckland. 166. Stocks have been reduced during the'year as follows :

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Value of Stocks as at — 31st March, 1946. 31st March, 1947. Reduction in Value of Stocks held. General stocks .. Textile stocks £ 845,931 1,167,322 £ 279,462 478,435 £ 566,469 688,887 ■ 2,013,253 757,897 1,255,336