B.—l [PT. IYJ.

PUBLIC WORKS DEPARTMENT—continued. I hereby certify that the Income and Expenditure Accounts and general balance-sheets, and the subsidiary accounts and balance-sheets for irrigation schemes in operation and Whatoro Sawmill, have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby, except that— (1.) The accounts include charges against the Department for rent, interest, and assets transferred from other Departments for which the Public Works Department possesses no parliamentary appropriation, and also credits for various services for which the Departments concerned possess no parliamentary appropriation. (2.) The Profit and Loss Account and balance-sheet for irrigation schemes in operation and the Whatoro Sawmill have been prepared in local offices from statements which have not been audited and have been accepted by Audit. (3.) The sum of £163,871 expended on railway-construction on the Kaikohe-Okaihau Section has been transferred out of these accounts, but is not yet included in the Railway Department balance-sheet. (4.) Stocks of timber at Whatoro Sawmill should not be brought in at selling-price. (5.) Complete valuation should be made of existing assets purchased out of the Plant, Materials, and Stores vote and of permanent-way materials which are now shown at book value. (6.) Expenditure under the Lands Improvement vote should be analysed and portion allocated to Crown Lands. (7.) In the opinion of the Audit Office additional interest charges should be brought in to cover the cost of interest actually paid from Consolidated Fund on loans raised and expended on public works. (8.) Separate revenue accounts should be submitted for (a) workshops, (b) revenue-earning lines not yet handed over to the Railway Department, (c) railway-construction canteen, and (d) Katikati milling operations. (9.) The asset represented by accumulated expenditure from departmental vote (£2,052,232 13s. 4d.) should be allocated to the various works upon which the sum has been spent. (10.) The system of accounting for Government stores calls for improvement. The Department has not yet fully complied with the provisions of the Public Revenues Act and Treasury Regulations in this respect. 6. E. C. Campbell, Controller and Auditor-General. SAMOAN LOAN SUSPENSE ACCOUNT. Income and Expenditure Account for the Year ended 31st March, 1924. Expenditure. £ s. d. Income. £ s. d. To Interest on loans .. .. .. 2,192 311 By Interest on advances to Samoan AdAccrued interest on loans .. .. 2,296 3 3 ministration .. .. .. 2,192 311 Interest accrued on advances to Samoan Administration .. .. .. 2,296 3 3 £4,488 7 2 £4,488 7 2 Receipts and Payments Account. Receipts. £ s. d. Payments. £ s. d. To Debentures issued .. .. .. 8,000 0 0 By Interest on loans .. .. .. 4.183 11 3 Interest on advances to Samoan Ad- Advances to Samoan Administration.. 8,000 0 0 ministration .. .. 4,183 11 3 £12,183 11 3 £12,183 11 ~3 Balance-sheet as at 31st March, 1924. Liabilities. £ s. d. Assets. £ s. d. Loan capital .. .. .. .. 95,000 0 0 Advances to Samoan Administration .. 95,000 0 0 Accrued interest on loans .. .. 2,296 3 3 Accrued interest on advances .. .. 2,296 3 3 £97,296 3 3 £97,296 3 3 The Treasury, Wellington, 23rd September, 1924. R. E. Hayes, Accountant to the Treasury. I hereby certify that the Income and Expenditure Account and balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.—G. E. C. Campbell, Controller and Auditor-General,

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