PUBLIC ACCOUNTS

Manawatu Standard, Volume LIV, Issue 295, 10 November 1934, Page 10

PUBLIC ACCOUNTS

COMMENT BY AUDITOR. GENERAL.

An abstract of the national finances far the half-year ended September 30 last has been published as a supplement to the Gazette. A summary of the totals revealing improved conditions in respect of State revenue was given by the Minister of Finance (lit. Hon. J. G. Coates) in the House of Representatives. Details show buoyancy in Customs revenue and taxation receipts. In certifying the accounts the Controller and Auditor-General (Colonel G. F. C. Campbell) makes the following exceptions: “1. The £1,000,000 payable to the Reserve Bank in terms of sections 10 and 11 of the Reserve Bank of New Zealand Act, 1933, was invested on behalf of the bank in Government stock, and the amount was not actually paid to or repaid by the bank in cash. The abstract, however, shows the amount as a receipt by the Government, but does not show any corresponding payment to the bank, and the balances of the Public Account are therefore incorrectly shown as increased by £1.000,000.

“2. The total of the balances as shown in the individual sub-accounts which constitute the Public Account amounting to £15,483,538 10s 8d is overstated owing to transfers made between sub-accounts being shown so as to increase the total balance of the borrowing sub account without decreasing the total balance of the lending subaccount. “3. The credit balances shown as 'cash’ in the individual sub-accounts, and which amount to £4,793,868 0s 3d, are overstated by an aggregate amount of £4,412,000. The latter amount represents sums paid from the Public Account by way of investment, and was not held as ‘cash’ in the Public Account as shown.

“Note. —This certificate is given subject to the final audit of certain vouchers, which, owing to the postaudit system provided for by the Public Revenues Act, 1926, cannot be completely audited before the date at which the abstract is required by the Act to be certified.”

A Treasury note by the Secretary to the Treasury (Mr A. D. Park) gives the following explanation: “1. No cash was paid to the Reserve Bank, and securities to the face value of £1,000,000 issued to the bank are included in the accounts as an investment in accordance with the provisions of section II of the Reserve Bank of New Zealand Act, 1933.

“2; The balances of accounts amount-

ing in the aggregate to £15,483,538 10s 8d are made up as follow:

£15,483,53S 10 8 “3. The £4,412,000_ of investments referred to are shown in the Public Ac- ] count Cash Balance Investment Ac- < count, The amount represents a gen- c oral temporary investment of cash not j

immediately required for expendi-1 ture.” |

£ s. d. Cash 381,868 0 3 Imprests ... 1,801,762 13 5 Investments 13,299,917 17 0