B.—No. 2b

FINANCIAL STATEMENT.

4

CONSOLIDATED FUND, AT 30TH JUNE, 1872. ASSETS. CR.

LIABILITIES. DR.

According to this Balance Sheet, which I believe to be correct, or as nearly so as is possible, it will be seen that, at June 30th, 1872, there would be, after realizing all available assets, and paying all known liabilities, a deficit on this fund of £33,345 18s. lOd. to be provided for, instead of there being, as shown by my predecessor, a surplus of £10,562 3s. 3d., with which to commence the present year. The Committee will naturally ask, how this discrepancy of £43,908 2s. Id. arises. I will proceed to explain it. In the first place, my predecessor took credit as an asset for £34,277 18s. 4d. recoverable from the Provinces, which I have good reason to believe will only

By Cash in the Colony in the Bank of New Zealand ... By Cash on Deposit with Loan Agents in London, to meet Interest and Sinking Fund falling due in July By Advances repayable to Consolidated Fund:— In the hands of officers and others A large portion of this amount will probably be accounted lor as Expenditure, to which extent it is a cross entry as against the amount set down for Liabilities on the other side. Due by Imperial Government ... Due by Provinces to Consolidated Fund on Separate Account Land Fund overpaid to Provinces £ s. d. £ b. d. 92,896 1 9 7,560 10 0 68,787 10 0 8,993 11 4 7,318 17 3 593 14 8 By Sums recoverable from Provinces in Accounts under " Payments to Provinces Act, 1871," &c. But there are several of these balances disputed by the Provinces, so that, whether ultimately recoverable or not, they cannot be calculated upon as available assets, to the extent of at least 34,642 9 10 24,466 13 3 By Amount recoverable from various Funds : — Trust Fund ... Defence Loan Public Works Account Consolidated Loan ... ... ■ Wellington Municipal Corporation These, with the exception of the last, are mere transfers, which will swell this Fund, but will accordingly diminish these other Funds, and will not increase the general cash-spending power of the Colony. By Reserve Account—a mere cross entry, being included on the other side as a Liability, but which, if paid as a Liability, will be recoverable from Provinces as an Asset ... 5,725 0 7 28,917 9 3 78 16 1 8,358 11 4 21 0 0 4,995 5 4 930 0 0 14,383 12 9 314 6 1 By Dr. Balance at 30 June, 1872 ... 229,765 13 1 33,345 18 10 £263,111 11 11

To Liabilities and Engagements payable out of Consolidated Fund, existing at date : — Interest and Sinking Fund on Loans, due 1 and 15 July, 1872 Interest on Temporary Loan Debentures held by Bank, to 30 June, 1872 Interest on Temporary Loan Debentures, Deficiency Bill, and Bank Overdraft, to 30 June, 1872 ... Amount stated formerly as Reserve Account Additional Liabilities, formerly stated as Miscellaneous Engagements Sundry Balances at credit of Officers and Suspense Accounts Further Liabilities not previously estimated £ B. d. £ e. d. 109,369 14 1 592 12 6 14,540 2 5 1,718 18 0 13,000 0 0 1,304 19 4 5,000 0 0 33,845 1 9 To Bank Overdraft To Deficiency Bill held by Trust Fund Commissioners 60,000 0 0 40,000 0 0 To Accumulated Savings on Civil List Fund „ „ Armed Constabulary Reward Fund „ ,, Native Schools Fund 100,000 0 0 5,618 17 2 2,362 13 9 9,603 14 8 17,585 5 7 These savings I place as a Liability, because any Government may at any time draw from Consolidated Fund on account of them without any vote of the Legislature. They will not probably be required during the current year, but they are nevertheless a liability which should always be kept in view. The Reward Fund is in reality a Trust Fund, to which I shall at once transfer it. £263,111 11 11