B—No Iα

■ REPORT OF THE AUDIT COMMITTEE.

8

Now, the utility of any such expenditure may be well doubted; but the propriety of wrapping up such an outlay under the style of " General Contingencies" cannot so well be defended. If it was considered advantageous to the Colony to make such an investment at all, a special vote should have been sought from the House. It cannot by any stretch be regarded as an unforeseen contingency. IX. Referring to the sums (pp. 2 and 3 respectively) of £94,987 13s. 7d. and £70,682 lis. 3d. (Provincial Surplus Revenue), the Committee consider that an interest account should be taken, as between the General and Provincial Governments, in account current, so that in case Provinces are short paid, they should be entitled to receive interest, and vice versa. X. Third Division of Loan (£180,000). —Under head "Contingencies," appears an item of £25, gratuity paid Mr. Dover for making up accounts. The Committee have thought they ought to notice this. The Committee also notice the large amounts chargeable on the Provinces of the North Island for the Land Purchase Department, out of the Loan of £180,000; and, considering that during the period submitted to their enquiry, some of the officers in this Department were employed as Political Agents amongst the Natives, they recommend that a portion of the charge of their salaries should he transferred from the account of the Provinces to that of the Colony. XI. With reference to the statement of the expenditure of £25,043 17s. 2d. out of the Loan of £150,000, whilst the Committee refrain from commenting on the fact that many of the items are not of the character usually provided for by Loan, they cannot but observe that the statement itself appears to have been hastily thrown together. The extremes of particularity and generalization may be said to meet (e.g.): — £ s. d. Carrying Message to Taupiri 8 7 0 Horse Hire 0 10 0 Miscellaneous Expenses 44 11 2 " " .... 192 8 0 XII. After examining into the statements of the Sub-Treasurer and Land Receivers, the Committe make the following remarks, viz.:— I. The Receiver at Canterbury did not furnish the Bank account in proper form. This had not escaped the attention of the Auditor of Public Accounts, who had made his queries thereon. 11. From the Sub- Treasurers and Receivers certified copies of the Bank pass-book, together with certificates of surveys of the Chest, are generally forwarded, but not always. Both should be required in all cases. 111. The amount in the hands of Receivers on the 30th September, viz., £16,843 17s. 10d., is excessive. This is in some reason accounted for by the Auditor of Public Accounts ; but the Committee think that the balance in the hands of Receivers at the end of a quarter should be almost nil. IV. The Committee record their opinion that, as a general rule, the offices of Collector and Sub-Treasurer should be kept perfectly distinct. XIII. The Committee observe that the pension to Te Whero Whero was paid up to the 31st March, 1860. They are informed that this is the Chief who was proclaimed Maori King, under the name of Potatau 1., and that he died on the 25th June, 1860. Out of the item "Presents and Entertainments to Natives/ amounting to £411 9s. 6d., the Committee discovered that the sum of £1. 17s. Od. was paid on the 11th November, 1860, for coffin furniture for Potatau. The facts and dates appeared to the Committee to be very remarkable.