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27 D.-No

collecting into one account these numerous accounts current of his agents, as stated above in reference to the collections. We are of opinion that the work both of the Treasury and Audit might be considerably reduced. In the Treasury the whole of the transactions of the Treasurer's agents, and of the Assistant Treasurer at AVellington, are entered into two sets of books. The first step in the Treasury, on receiving tho weekly accounts of the Sub-Treasurers is to carry their transactions into an abstract book kept for the purposo of compiling the quarterly statements for publication in the Government Gazette. The entries are arranged according to the Estimates, and are stated with much minuteness. The next step is to take up again the same accounts and vouchers and enter them in a journal, where every transaction is shown, and the whole work done in a different form. From the journal the entries aro carried into the ledger, where they are classified in accordance with the annual Estimates. In the Audit office tho process is again repeated. Each voucher of the numerous Sub-Treasurers and Sub-Accountants, together with the transactions of the Assistant-Treasurer, are entered in abstract books. Tho entries are summed up quarterly. It is considered that in the Treasury the ledger might conveniently be written up from the abstract book, and the journal dispensed with. It appears to us a waste of labour and time to state, in full every particular of an account in two distinct sets of books. The great principle to be followed is to present the transactions at first in detail in the abstract book as the basis of all statements, and at last in the stage of greatest condensation and clearness in the annual statement for the information of the General Assembly. AVith this view every transaction of the Accountants of the Treasury should be entered in the abstract book day by day as the weekly accounts are received at AVellington. The entries should show tho date, the number of the voucher, from which accountant received particulars and amount. The Colonial Treasurer should send to the Auditor weekly a copy, supported by vouchers, of so much of tho abstract book as shall then not have been sent by him to the Auditor, showing in a separate column tho total of each head of revenue and expenditure. These abstracts of accounts, if agreed to by the Auditor, would become tho foundation of all statements of accounts. As soon as possible after the termination of the financial year, the Colonial Treasurer would, as hitherto, prepare the yearly statement of receipts and expenditure, duly classified, and forward it to the Auditor for examination ; any discrepancies between this statement and the Treasurer's weekly statement, if objected to by the Auditor, or any other matter calling for notice, should be stated by the Auditor in a separate report. Under this uniform, simple, and centralising arrangement, the numerous and intricate transactions of the Treasury would be shown in an intelligible form, and every useful information furnished with facility ; and, above all, an early and effective audit initiated, and, we believe, the many and just complaints of the obscurity and complexity of the public accounts, would be obviated. The Auditor would be relieved of the anomalous duty of making up the public accounts from not less than 700 separate weekly accounts, and would be saved the waste of time of finding out the discrepancies between his own mode of classifying these accounts and that of the Colonial Treasurer. It is impossible under the present system that two independent offices should make up such extensive accounts exactly in the same manner. The several Ministers should for each quarter of a year supply the Treasurer with a statement of funds required by them under the several items of the Votes, as shown by the Appropriation Act, and also detailed estimates of services, if any, not provided for by that Act. They should also furnish the names of the heads of departments to whom they wish the money to be advanced for the payment of salaries or other expenses. The Treasurer should then, after such consideration of the state of the finances at the time as the Government may deem necessary, issue authorities for incurring expenditure, numbered consecutively, and in strict conformity to the Estimates. Each Minister should keep an account against the votes and authorities, to be posted from vouchers as certified for payment. Existing regulations already provide for a similar record in tho Treasury of authorized payments. Each Ministerial section and departmental division and sub-division of the Estimates should be numbered consecutively. Every voucher should show on its face the vote, division and subdivision, and authority numbers. This systom of Treasury authorities, based on the votes and authorities, secures the control of all expenditure in the hands of the Treasurer, and gives that Minister at any time full knowledge of the position of the finances of tho Colony, facilitates reference, and prevents errors in classification when entering in the books. In reference to the Annual Statement of the Colonial Treasurer, it is observed that frequent alterations have been made in its form and arrangement. Changes have also been made in the form of the Annual Estimates. Appropriation Acts are passed long after tho commencement of the financial year. It is necessary, if an early and accurate statement of the expenditure is to be submitted to the General Assembly, that the Estimates, on which the classification of the year is to be based, should be passed either before or immediately after the expiration of the last Appropriation Act, and that the classification in the Estimates should, one year with another, be as uniform as possible. Neither in the Treasury nor the Audit Office can the new year's accounts be entered up and classified until the Estimates are passed. It is also necessary for the purpose of comparison iv future years, that the Treasurer's Annual Statement of Financial Accounts should be drawn up in a settled form. Such comparison can scarcely bo made if the arrangements in the statements differ essentially from each other. It is desirable, therefore, that a settled form should be established by authority. Tho accounts of a Government, we believe, may be exhibited in an intelligible shape; and it will not, perhaps, be out of place to give, in an appendix to this Eeport, a form of account which, in our opinion, would show clearly the transactions of tho Treasury. We append the forms of account which we recommend for adoption, and have shown in them, for illustration, the finances of tho year 1801-5, statements of winch have lately been laid upon the Table of the House of Eeprcsentatives.

Appendix A,

SERVICE COMMISSIONERS.