II E P O R T OF THE AUDIT CO M M I T T E E

Page 39. Land Revenue. — Colonial Treasurer on account Land Purchase, Province of Auckland £1908 5 2 On comparison of this amount with that debited to the Colonial Treasurer in the Balance Sheet, page 4, a discrepancy of £125 10s. is observable. This amount of accrued "sixths" of land sales had not been paid over by the Receiver of Land Revenues of that Province, on the 30t!i September. Page 43. Debt Apportionment. — Balance, 30th September, 1859 £119,044 11 0 This amount is made up of Old Debentures outstanding 4.044 11 0 Amount of new Loan taken up on account of the Colony ... 115,000 0 0 £119,044 11 0 The old Debentures outstanding are — Scott's Debentures £3,675 16 0 New Ulster Land Debenture 45 0 0 Old Debentures (small) 85 15 0 Do. .".percent 238 0 0 £4,044 11 0 For the clear understanding of this account, your Committee has prepared and appends hereto, marked F, a statement of all the debts of the Colony which have been consolidated under the provisions of the "Loan Act, 1856 " The second division of the half-million guaranteed Loan having been applied to discharge a great number of liabilities of various amounts, your Committee recommends that all sums paid out of this portion of the Loan, not specified in the " Loan Act, 1856," should be submitted to the Legislature for spec ific appropriation. Your Committee also recommends that certain expenditure on the Government Domairi ) charged to the Auckland Reserves account, but not authorised to be so charged by the Act of 1858' be legalised. Your Committee also recommends that the "Public Debt Apportionment Act, 1858," be amended by substituting for the sum of £11,151 10s \\A, to the interest on which the Province of Auckland is declared to be relieved from contributing, the sum of £9690 11s. 2Jd., which is the real portion of tha Auckland refund charged upon the second division of the guaranteed Loan. Your Committee also recommends that the advance of £25,000 to Messrs. Pearson and Co., on Steam account, be submitted to the Legislature for definite sanction. Balance Sheet, 30th September, 1859. The cash balances at the Colonial Treasurer's credit at the Union Bank on the 30th September, 1857, 30th September, 1858, and 30th September, 1859, have been ascertained from the Manager of the Bank in Auckland ; they have been compared with the Treasurer's books, and the entry in the balance sheet of each period proved correct. Suspense Account, £8,133 9s.—This is an amount which was drawn from the Commissariat" Chest by Sir George Grey in 1853. The Committee on Public Accounts in the Session of 1858 (Votes and Proceedings, Journal House of Representatives, pp. 173, 174) reported that it was properly charged to the suspense account, and your Committee has not be en able to ascertain that it is either a more or a less probable liability of the Colony than it was at that time. Deposits Miscellaneous, £5,783 3s. lid.—This amount, which, as above stated, should be £5,784 3s. lid., is the remainder after deducting a credit balance of £137 12s. sd. from a debit balance of £6,221 16s. 4d. Of the latter amount, no less a sum than £6,023 11s. 9|d. represents the liability of the Colony for funds belonging to Intestate Estates. These funds are paid into the common account, and are used as a working balance by the Treasurer. Your Committee is of opinion that moneys belonging to Intestate Estates should be separately invested; and further, that the utmost publicity should be given to enable heirs to make their claims. Advances Miscellaneous, £9,061 Is. 7d.—This item includes loans to Natives amounting to £4,116 19s. A statement of these loans i 3 appended hereto in detail (marked II). It is recommended that all such sums as are not likely to be recovered be brought to charge. On consideration of the remaining items brought to credit under the head of Advances, your Committee has to express its decided opinion that no payment or advance of public moneys ought to be made without the sanction of the House. Steam Loan, £22,500. —Your Committee appends hereto (marked I) a statement of the Steam Loan Account, together with a copy of a memorandum between the Government and the Company, relative to a postponement of payment ef Instalments due. Your Committee found the accounts on first inspection rather obscure, but further investigation removed much of the apparent complexity. No doubt, after the lapse of a short time, when the system of account-keeping now adopted shall have had a full opportunity of developing itself, and the remains of past complications shall have disappeared, the accounts of the Colony will be presented in a

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