B—l [Ft. ll]

The arrangement, though it involves a remission of £(F.)268,580, has not been •considered as coming within the writing-off provisions of section 3 (3) of the Public Revenues Act, 1926. War Assets Realization Board The above-named Board was dissolved as at 31st December, 1948, and its functions .are being carried on by the Stores Control Board. Receipts from the sale of war assets for the financial year 1948-49 amounted to over £1,500,0 CX), and from the disposal of assets acquired under German Reparations to £125,000. Some £915,000 of these amounts was handled by the Realization Board, and its successor. The number of transactions was high ; in fact, September, 1948, was a peak month so far as issue of invoices was •concerned. The accounts are under audit at present. East Coast Maori Soldiers' Fund In view of the several parties interested in the station properties of this Fund the Audit Office suggested in October, 1946, to the Minister in Charge of War Funds that he review the trust. The matter was ultimately referred to the Crown Law Office, which was of opinion that the position was not fully covered by law. The Maori Trustee has lately advised that it will be necessary for him to discuss the matter further with the law officers before any adjusting action can be taken. Patriotic Funds The accounts of the New Zealand Patriotic Fund Board and of ten Provincial Patriotic Councils for the year ended the 30th September, 1948, have been audited as required by section 40 (1), Patriotic and Canteen Funds Act, 1947. The audit of the accounts of two other Councils for the same period is in progress, but that of the remaining two has been delayed through lack of Audit staff. The last report mentioned that the Minister of Internal Affairs had approved of the introduction of legislation validating grants made by four Councils to returned services' organizations. This legislation is contained in section 25, Finance Act, 1948. Canteen Board (Now Armed Forces Canteen Council) Under the Armed Forces Canteens Act, 1948, the Armed Forces Canteen Council .was established as from Ist December, 1948. The Council takes the place of and has the same staff as the Canteen Board established under the Defence Canteen Emergency Regulations 1939 (now revoked), and its constitution, functions, and powers are similar to those set out in the above regulations. The accounts of the Board up to 31st March, 1948, have been audited by the Audit •Office. The examination suggested that the internal check was not fully functioning, but the Audit Office has been advised that steps have been taken to remedy the matter. A reference to a new body, the Canteen Fund Board, is made in the paragraph following.

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