C—l.

This total balance is within a few pounds of what it was last year. During the year the sum of £79,043 9s. lOd. was paid into this account. The total at credit in the various Beceiver's books due to local bodies for "thirds" and "fourths" is £40,633 18s. lOd. This amount is less than last year's balance by £260 12s. 9d. In Auckland, Napier, Wellington, Blenheim, Hokitika, and Invercargill the amounts at credit have increased; in New Plymouth, Nelson, Christchurch, and Dunedin they have decreased. During the year I inspected the following offices, and audited the books of the Beceivers : viz., Napier, Gisborne, Nelson, Wellington, Blenheim, Auckland, Hokitika, Beefton, Westport, Christchurch, Invercargill, and Dunedin. On my return to headquarters from each place I specially reported and furnished balance-sheets of transactions. The office staff has been kept busily employed upon the inspection and audit of the cash-books submitted to this office by the Treasury, and this work is as close up as it is possible to have it. All sectional cards and returns received are carefully scrutinised, and where it is possible to apply a check, such as comparing areas and prices shown in pamphlets and posters, it is done. Besides the ordinary audit and inspection, and in connection therewith, 1,804 queries were sent out for answers, 477 memos, written, 347 memos, received, 1,040 Commissioners' reports received, 2,263 new cards received, 76 refund vouchers examined. I have much pleasure in testifying to the diligent manner in which the officers in this branch of your Department perform their duties. I recommend them to your favourable consideration when you are framing your salary estimates.

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