B.—l [Pt. ll]

4

Control op Expenditure. For some years past difficulty has been experienced in exercising proper control over expenditure charged to votes under the annual Appropriation Act owing to the fact that credits received by a Department were treated as an addition to the total sum appropriated by Parliament for the service of that Department. The law was, however, amended last year, and in terms of section 22 of the Appropriation Act, 1923, the expenditure under departmental votes will now be limited to the amount actually appropriated by Parliament. The law now follows the principles adopted in connection with the British system of accounts. A further reform is desirable, however, before it can be said that Audit control over expenditure is complete. In some cases a Department administers various services of a widely different nature, over the expenditure on each of which it is desirable to have separate control. At the present time the whole of these services are embraced under one vote in the annual Appropriation Act, and no separate control is possible. The vote for Department of Internal Affairs is an example of this, embracing such widely different services as Registrar-General's Office, High Commissioner's Office, and Museum, which are shown as subdivisions under the vote. As the function of the Audit Office in this connection is confined to ensuring that the total appropriation for each vote is not exceeded, it will be seen that, without exceeding the vote, expenditure could be made on one service beyond the amount of the appropriate subdivision shown in the estimates passed by the House, at the expense of another subdivision in the same vote. To enable an effective control of the expenditure on each service to be carried out, it is desirable that a separate vote should be taken for each separate subdivision. Audit op Government Loans and Public Debt. During the financial year there was a net increase of £2,663,037 in the total debt of the Dominion, the amount of loans outstanding on 31st March, 1924, being £221,616,361. The movement in the debt is shown by the following statement: —- Public State Advances Total Debt. Debt. Debt. Increase — £ £ £ Raised for redemptions due in 1924-25 .. .. 46,590 .. 46,590 New loans raised during the year— For public works.. .. .. .. 4,000,000 .. 4,000,000 For Waihou and Ohinemuri Rivers improvement 60,000 .. 60,000 For Discharged Soldiers Settlement Account 37,500 .. 37,500 For Education Loans Account .. .. 200 .. 200 For Hauraki Plains settlement .. .. 80,000 .. 80,000 For Native-land settlement .. .. 320,000 .. 320,000 For Rangitaiki land-drainage .. .. 52,000 .. 52,000 For Samoan loans .. .. .. 8,000 .. 8,000 For swamp-land drainage . . .. .. 63,000 .. 63,000 For State Advances—Settlers Branch .. 1,300,000 .. 1,300,000 For State Advances—Workers Branch .. 1,300,000 .. 1,300,000 For charges and expenses of redemptions— Land for settlements .. .. .. 21,572 .. 21,572 State Advances —Settlers Branch .. .. 4,109 4,109 State Advances—Workers Branch .. .. 77,041 77,041 Total increase during 1923-24 .. 7,288,862 81,150 7,370,012 Decrease — Loans paid off during the year — From cash in various accounts— Ordinary Revenue Account .. .. 1,659,913 .. 1,659,913 Electric Supply Account .. .. 31,400 .. 31,400 Discharged Soldiers Settlement Account 3,100 .. 3,100 Land for Settlements Account .. .. 47,942 .. 47,942 War Expenses Account .. .. 2,203,958 .. 2,203,958 Total payments from cash .. 3,946,313 .. 3,946,313 From sinking funds .. .. .. 200,000 1,700 201,700 From loans raised in 1922-23 for redemptions in 1923-24 .. .. .. .. 50,020 .. 50,020 Treasury bills redeemed from proceeds Public Works Loan 500,000 .. 500,000 Discount on securities redeemed below par .. 8,942 .. 8,942 Total decrease during 1923-24.. 4,705,275 1,700 4,706,975 Net increase during 1923-24 2,583,587 79,450 2,663,037 Add loans outstanding at 31st March, 1923 .. .. 206,390,374 12,562,950 218,953,324 Loans outstanding at 31st March, 1924 £208,973,961 £12,642,400 £221,616,361