8.—19

14

The Audit Office, consequently, is unable to regard, as dispensing the Government from the statutory obligation to pay the moneys to the Public Trustee, the Governor's decision that it should be credited to " Miscellaneous revenue." The money is by statute still to be paid to the Public Trustee, and the Controller and Auditor-General regrets that he feels himself under the necessity of certifying the Public Accounts subject to a remark that the money should have been paid to the Public Trustee. J. K. Waebueton, Controller and Auditor-General.

No. 31. Abstract of the Revenue and Expenditure of the Public Account for the Financial Year ended 31st March, 1901. ***** The foregoing accounts have been examined and found correct, subject to the following remarks : —■ * * * * * 6. The lodgments to the credit of the Deposit Accounts include a sum of £5,657 10s. 6d., which was received for the repurchase by the Bank of New Zealand, under section 8 of "The Bank of New Zealand and Banking Act, 1895," of the preferred shares, and which, being such part of " all moneys received for the said repurchase" as consisted of " the amount of all dividends accrued and unpaid in respect thereof up to the time of payment of the price," should have been transferred to and shown in the the statement receipts and expenditure of " The Bank of New Zealand and Banking Act 1895 " Account, and paid to the Public Trustee. J. K. Waebdeton, Bth May, 1901. Controller and Auditor-General.

CASE. No. 5. No. 1. Construction of Roads under Land for Settlements Act. Mr. Knowles. Would you kindly refer me to the section of "The Land for Settlements Consolidation Act, 1890," that authorises the construction of roads? J. C. Gavin, 7th March, 1901. Assistant Controller and Auditor.

No. 2. The Assistant Controller and Auditor. Please see section 66, subsection (1). E. A. Pateeson, 7th March, 1901. Deputy Chief Accountant.

No. 3. Mr. Knowles. Does the land of the Starborough Estate contain deposits of coal, lime, or valuable stone ? 7th March, 1901. J. C. Gavin.

No. 4. The Assistant Controller and Auditor. Without a special report, I cannot say. I believe there are limestone-deposits ; but we have no definite information. B. A. Pateeson, Bth March, 1901. Deputy Chief Accountant.

No. 5. Mr. Knowles. I feae it will be necessary to satisfy the Audit Office on the point. Is the section quoted in your minute of 7th March the only authority in the Act for the construction of roads ? J. C. Gavin, Bth March, 1901. Assistant Controller and Auditor.

No. 6. Mr. Gavin. Please see sections 51 and 71, and section 29. 21st March, 1901. H. J. Knowles.

No. 7. Mr. Knowles. Section 51 does not contain express provision for the construction of roads ; it is merely a direction as to the method of fixing the rental and capital value; and, though it provides for taking the cost of roading into consideration in fixing such rental and capital, it does not specifically authorise road-making; nor does it give authority which, together with section 71, would amount to an appropriation. The only authority in the Act for road-making is, apparently, in section 66, and that applies only to a certain class of lands. -J. C. Gavin, 22nd March, 1901. Assistant Controller and Auditor.