8.—20b.

No. 2.

—— Vouched. Not vouched. Total. £ a. d. £ s. d. £ s. d. Cablegrams ... ... ... ... 187 12 2 334 14 6 522 6 8 Pay ... ... ... ... ... ... 138 11 0 138 11 0 Allowances ... ... ... ... 4 10 0 76 14 0 81 4 0 Stationery and printing ... ... ... 16 5 10 32 5 11 48 11 9 Office-furniture ... ... ... ... ... 49 7 9 49 7 9 Eent of office and stores ... ... ... 12 0 58 4 4 59 6 4 Petty cash 7 12 0 198 19 1 206 11 1 Comforts to men in hospital ... ... ... 147 0 9 66 6 8 213 7 5 Cash paid to men in hospitals and concentration ... 239 3 3 239 3 3 camps Clothing and outfits to men ... ... ... 104 8 8 9 13 6 114 2 2 Comforts supplied to men on board ship ... 6 17 6 171 13 6 178 11 0 Funerals ... ... ... ... ... 29 18 9 5 7 0 35 5 9 Warmaps 130 0 Oj ... 130 0 0 Louis Peat —passage and expenses ... ... ... 3770 37 7 0 Orderly E. Sergt. Smith ... ... ... 10 10 0 ... 10 10 0 Shipping-charges ... ... ... ... ... 214 5 214 * Advertising ... ... ... ... 2 10 0 2 10 0 Exchange on cheques ... ... ... ... 14180 14 18 0 Case for Mausers ... ... ... ... ■ 2 211 ... 2 211 648 0 7 1,438 9 1.1 2,080 10 6

No. 3. The Treasury. Has the Administration any proposal to make in respect to the unvouched expenditure in Major Pilcher's accounts with which Mr. Gavin's memorandum deals ? J. K. Wakbubton, G. and A.G. 11th April, 1902.

No. 4. The Colonial Treasurer. It is to be regretted that Major Pilcher's accounts should be insufficiently vouched, and the Audit Office could not be expected to pass such unsatisfactory accounts without drawing attention to their condition. On the other hand, it must be remembered that Major Pileher is not versed in the Treasury regulations, besides which I have no doubt payments were made at very high pressure, when the ordinary requirements to safeguard such payments had to be relaxed under the very exceptional circumstances which must necessarily surround payments made almost at the seat of war. I am of opinion that the Audit Office should be asked to treat these accounts as exceptional and to pass them, although informal, and that, if the Audit Office should consider it necessary, Parliament shouid be informed of the action taken. Jas. B. Heywood. 15th April, 1902.

No. 5. The Controller and Auditor-General. I should be glad to know whether, in view of the difficulty of obtaining vouched items asked for you can follow the Secretary's suggestion. J. G. Waed. 17/4/02.

No. 6. The Hon. the Minister. In the circumstances the suggestion appears to the Audit Office to be reasonable. If such accounts comprise payments the only objection to which is that they are not supported by the vouchers necessary to audit, the Audit Office will pass the payments, and report the matter to Parliament, on the Minister's assurance that they are payments with which he is satisfied and for the passing of which by the Audit Office the Administration is prepared to take the responsibility. J. K. Wakbubton, C. and A.-G. 17/4/02.

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