I.—lla.

1902. NEW ZEALAND.

PUBLIC ACCOUNTS COMMITTEE (REPORT OF, ON PAPER B.-20: REPORT OF THE CONTROLLER AND AUDITOR-GENERAL AS REGARDS AUDIT AND IMPERIAL WAR OFFICE EXPENDITURE; TOGETHER WITH MINUTES OF EVIDENCE.) (Mr. FISHER, CHAIRMAN.)

Beport brought up on 26th August, 1902, and ordered to be printed.

EEPOET.

The Public Accounts Committee, to whom was referred the above-mentioned paper, have the honour to report that they have considered the same, and are of opinion " That no action is .necessary." 26th August, 1902. G. Fishee, Chairman.

MINUTES OF EVIDENCE.

Tuesday, 19th August, 1902. Be Report of the Controller and Auditor-General as regards Audit of Imperial War Office Expenditure (Paper R.-20). James Kemmis Waebubton, Controller and Auditor-General, re-examined. (No. 5.) 1. The Chairman.] Will you please let us know, Mr. Warburton, what there is to be said with regard to this paper—B.-20?—I think, sir, that I have said all I have to say in the paper itself. The Imperial War Office has consented to dispense with the audit by the Audit Office of expenditure Of its moneys by the Government of New Zealand in New Zealand. 2. The War Office has agreed to that? —It has agreed, I understand, to dispense with the audit by the Audit Office of New Zealand of the expenditure by the Government of New Zealand of moneys remitted by the War Office for such expenditure. 3. That absolves the Audit Office from any responsibility in the matter? It is a purely Imperial matter, I understand?—The only question for consideration is this: The Audit Office consents not to require the observance of the condition in the Public Bevenues Act that the voucher for any expenditure out of the Public Account shall be satisfactory to the Audit Office. The Audit Office has consented to waive that requirement on the ground that the only body or the only person to whom we are responsible is the War Office. 4. The War Office is satisfied ?—lt has consented, I understand, to dispense with the audit by the Audit Office. 5. Mr. J. Allen.] What are the conditions in the Public Bevenues Act that you waive?— Section 45 of the Act of 1891, which provides that a requisition is necessary to the passing of the moneys out of the Public Account; and that requisition can by law comprise only vouchers passed by the Audit Office. 6. The pre-audit ?—Yes. 7. The colony is not interested, is it? So far as the money is concerned, it is War Office money ?—Yes ; but it went into the Public Account. 8. What account did it go into ? —The Deposit Account, I understand. 9. Did any of it go to the Bevenue Account ?—No. If there was an expenditure on account ■of the Imperial War Office by the Colony of New Zealand, that might subsequently be transferred from this Deposit Account.