8.—9.

1902. NKW ZEALAND.

PUBLIC TRUST OFFICE (ACCOUNTS OF THE) FOR THE YEAR ENDED 31st MARCH, 1902.

.Laid before the General Assembly in pursuance of Section 36 of " The Public Trust Office Consolidation Act, 1894."

The Conteolleb and Auditoe-General to the Hon. the Colonial Teeasueee. Sib,— Audit Office, 14th June, 1902. I have the honour, in accordance with the provisions of section 36 of " The Public Trust Office Consolidation Act, 1894," to transmit to you the attached balance-sheet of the Public Trust Office for the year which ended on the 31st March last, and to report that I have examined this balance-sheet and found it to be correct, subject to the following remarks: — According to section 29 of " The Public Trust Office Consolidation Act, 1894," the moneys to the amount of £600,000 arising under section 8 of " The Bank of New Zealand and Banking Act, 1895," became, as soon as they were received by the Public Trustee, part of the common fund, any investments made from which cannot lawfully be made on account of or belong to any particular estate, and entitled the respective estate to be credited quarterly with interest payable at the rate determined by the Governor in Council. Such common-fund rate of interest has not, however, been paid; the investment of the moneys in Government securities of New Zealand has been transferred from General (common fund) Investments Account to Special Investments Account, and the amount received as interest on the investment —£8,750, to 23rd April, 1901—has, less £4 18s. 2d. expended in telegraphing, been repaid to the Treasury. I have, &c, J. K. Wabbubton, The Hon. the Colonial Treasurer, Wellington. Controller and Auditor-General.

The Public Trustee, on looking into the matter of the £500,000, came to the conclusion that it was not a common-fund investment. The Solicitor-General has confirmed this view, and it therefore became necessary to make a correction in the present balance-sheet by now showing it as a special investment. J. G. Waeu.

I—B. 9.