HOUSING ACT, 1919. STATEMENT OF ACCOUNTS FOR YEAR ENDED 31st MARCH 1921.

Appendix to the Journals of the House of Representatives, 1921 Session I-II, H-11b

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Session 11. 1921. NEW ZEALAND.

HOUSING ACT, 1919. STATEMENT OF ACCOUNTS FOR YEAR ENDED 31st MARCH 1921.

Presented to both Houses of the General Assembly pursuant to Section 28 (7) of the Housing Act, 1919.

(a.) Revenue Account, Ist December, 1919, to 31st Makoh, 1920. £ s. d. • 1 c. (I. To Administration expenses (general) 509 711 By Administration charges .. .. 181 13 9 Salaries .. .. .. 2,810 7 5 Grazing rent .. .. .. 12 11 0 Commission .. .. .. 77 18 11 Interest receivable .. .. 5,356 1 3 Office rent .. .. .. 100 0 0 Insurance concession . . .. 57 17 1 Interest payable .. .. 4,017 5 7 Miscellaneous receipts .. .. 58 17 0 Balance (carried forward into next year's Revenue Account) .. 1,847 19 3 £7,514. 19 10 £7,514 19 10 (b.) Balance-sheet as at 31st March, 1920. Liabilities. £ S. d. Assets. £ s. d. Sundry depositors .. .. .. 3,244 18 3 Vacant land .. .. .. 23,5.18 13 9 Elates Account .. .. .. 55 15 4 Dwellings let or leased .. .. 7,(i(i(i 4 9 Sundry creditors— Sundry purchasers— For rent .. .. .. 100 0 0 Balance of principal .. .. 310,549 1 0 For payments on oontract .. 197 10 0 Balanoe of advanoes .. .. 37 0 4 Lands Department— Bents transferable Balance owing on vacant seotions .. 1,872 18 (i to land revenue .. .. .. IS 14 0 Dwellings in course of erection (includOonsohdated Fund—Expenditure re- ing stock of materials and plant) .. 5,338 14 0 payable to Labour Department Tote 3,202 11 10 Instalments collectable— Arrears outInlerest accrued on capital .. .. 4,297 18 8 standing .. .. .. 1,646 Iβ 8 Special maintenance reserve .. .. 39 16 3 Rents collectable Arreaa outstanding 52 2 8 Reserve for maintenance of dwellings Deposit Aooount .. .. .. 3,114 19 .'! let; or leased .. .. .'. 24 1 6 Office furniture .. .. .. 187 16 9 Reserve for depreciation of dwellings Premiums paid in advance .. .. 370 (i 10 let or leased .. .. .. 1,279 511 Cash in bands of agents .. .. (i 2 011 Fnsurance reserve .. .. .. 919 19 6 , Cash at G.P.O. .. .. .. 042 1 7 Capital .. .. .. •• 355,454 9 8 Cash at bank (including imprest advance) .. .. .. .. 11,928 4 1 Revenue Account (balance carried forward into next year's account) .. 1,847 19 3 £368,835 0 10 £368,835 0 10 Examined and found correct. — It. J. Collins, Controller and Auditor-General. 29th June, 1921. (c.) Revenue Account fob the Year ended 31st Makch, 1921. Dr. £ s. d. i Or. £ s. d. £ s. d. I',, interest .. .. .. 12,567 19 8 By InterestSalaries .. .. .. 16,360 11 4 From purchasers, &c. 17,730 8 5 Office rent .. .. .. 1,077 10 10 From tenants .. 303 19 I Administration expenses .. 2,801 7 11 18,094 7 (i Commission .. .. .. 192 9 8 Insurance rebate .. .. 90 1 11 Depreciation on furniture .. 138 14 8 Administration expenses recouped 3,994 12 4 Grazing .. .. .. . 53 10 6 Miscellaneous receipts .. .. 75 2 8 Net loss for year to Net Revenue Account* .. .. .. 9,830 19 2 £32,138 14 1 £32,138 14 1

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Net Revenue Account. £ s. d. £ s. d. To Balance brought forward .. 1,847 19 3 By Balance .. .. .. 11,678 18 5 Net loss for year* .. .. 9,830 19 2 £11,678 18 5 £11,678 18 5 {(I.) Balance-sheet as at 31st March, 1921. Liabilities. £ s. d. Assets. £ s. d. Capital Account .. .. .. 624,163 15 10 Cash at bank— £ s. d. Sundry creditors — Housing Account .. 33,997 4 7 On open account .. .. .. 1,251 1 9 Deposit Account .. 6,049 18 8 Treasury for interest .. .. 18,516 2 1 Public Account .. 18 4 8 Outstanding liabilities for rent, &c. .. 4,192 2 11 40,065 7 11 Sundry depositors .. .. .. 4,587 3 5 Cash in Post Office .. .. 1,027 1 5 Special maintenance reservo .. .. 139 16 8 Cash in hand— Depreciation reserve .. .. 1,459 10 0 Branches .. .. 42 13 1 Insurance reserve .. .. .. 1,752 11 3 Imprestees .. 5 110 Gravel Account .. .. .. 98 8 9 47 14 11 Loan on mortgage .. .. 3,500 0 0 Sundry debtors .. . . 608 811 Sundry purchasers— Dwellings .. .. 416,839 3 1 Advances .. .. 586 6 10 Vacant sections .. 1,610 16 6 419,036 8 5 Instalments in arrears .. .. 1.876 6 3 Rents in arrears .. .. 75 15 6 Stocks of materials .. .. 31,651 1 6 Works in progress .. .. 25,938 1 11 Uncompleted contracts .. 47,852 9 2 Office furniture and fittings 187 16 3 Net purchases during year 583 3 10 771 0 7 Less depreciation .. 138 14 8 632 5 11 Office bicycles .. .. .. 15 0 9 Freehold land .. .. .. 62,108 14 2 Freehold dwellings let or leased .. 7,300 17 4 Freehold dwellings (purchases incomplete) 2,030 0 0 Premiums paid in advance .. .. 523 17 4 Repairs and Maintenance Account .. 192 410 Revenue Account — Bal- £ s. d. ance at 31/3/20 .. 1,847 19 3 Add net loss for year* .. 9,830 19 2 11,678 18 5 £656,160 12 8 £656,160 12 8 Henry E. Moston, Deputy Housing Superintendent. A. Bubgess, Accountant. * A portion of t.liis amount is ohargeable to uncompleted dwellings, land not yet built upon, and other future operations; the balance is largely due to the Initial expense Lnourred in setting-up the Housing Branoh. The accounts have been duly examined and compared with the various relative books, documents, and papers, and found to correspond therewith. The balance-sheet is, however, subject to the following qualifications and comments : — (a.) There is no authority of law for the creation of a so-called insurance reserve, and, as no investments have been made to meet the obligations entered into with regard to lireinsurance margin, Government is apparently subject to an unwarranted liability. (t>.) The value of stocks of material is declared to represent the cost price. (c.) The assets and liabilities cannot be certified to until the respective values of the various transfers in land between the Lands Department and the Housing Department have been ascertained —a matter which is now being dealt with. (d.) Workers' dwelling investments amounting to £52,100 are held by Treasury against interest totalling £60,926 Bs. 7d. accrued to 31st December, 1919. R. J. Collins, Audit Oilice, Wellington, 2nd November, 1921. Controller and Auditor-General. Memorandum. In regard to paragraph (a) of the Controller and Auditor-General's comments, it may be explained that as occupants of workers' dwellings usually pay only a small deposit —in most cases £10 —the Government might be liable; for any loss from fire that might occur over and above the maximum amount of insurance effected with insurance offices, which is about 75 per cent. The Department has therefore, in all cases, charged the occupants with additional insurance for the balance of the risk, and the premiums so received have been paid into the Housing Account and set apart as an Insurance Reserve. Henry E. Moston, Wellington, 29th November, 1921. Deputy Housing Superintendent.

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