B.—l [Ft. ll].

List of Departments the Property and Stores of which have been Audited during the Year —continued.

Audit of the Accounts of Local Authorities. I am pleased to report that, despite the fact that the legislation of recent sessions of Parliament has considerably increased the work of the Audit Inspecting Staff, the audits of local authorities accounts during the past year have been brought closer up to date than has been the case for a considerable number of years past. , . It is also satisfactory to note that there is an improvement m the manner m wluch many of these accounts are now being_ prepared and also that greater promptness is being observed in submitting the accounts for audit. v, j a Durino- the past year there were no less than 2,006 accounts of local authorities audited and certified by the Audit Office, the classes of accounts and the number in each class, included in this total, being as follows : — Counties .. .. ..130 River Boards .. •• 41 Boroughs .. • • .. 128 Drainage Boards .. • ■ 74 Town Boards 73 Rabbit Boards .. •• 55 Road Boards 13 Electric-power Boards .. .. 48 Harbour Boards .. . • 36 Domain and Scenic, &c., Boards 84,3 Hospital Boards .. • • 55 Cemetery Trustees .. • • 3 ;^ Fire Boards 59 Miscellaneous .. •• 39 Educational .. .. • • 77 Local Authorities' Finance. The present adverse economic conditions are reflected in the accounts of local authorities and it is apparent that many local authorities, owing to their inability to collect the rates levied are finding it increasingly difficult to keep within the statutory limits of overdraft or to meet their ° bli fe the past year there were no less than forty instances where the statutory provisions governing borrowing on overdraft were contravened by local authorities, and m each case the local authority concerned was called upon to take immediate steps to reduce its overdraft to within the l6ga ThTThames Borough Council was, during the past year, unfortunately compelled to notify its debenture-holders that it was unable to meet interest payments on its loans, and an arrangement was entered into between the Council and its debenture-holders enabling relief to be given to the borough ratepayers Special legislation was passed during last session of Parliament to give effect to this arrangement and to provide for the appointment of a Commissioner for three years to control the affairs 0 f the borough.

iv—B. 1 [Pt. ll].

XXV

Department and Office. Number. Date. Remarks. Naval Defence Department— Cash accounts .. .. .. .. 48 Various Cash. Provision accounts .. .. .. 21 Various Stores. Clothing accounts .. .. .. 16 Various Stores. Ledgers .. .. ... .. 52 Various Cash. Miscellaneous accounts .. .. .. 31 Various Boatswain's, engineers, gunners , medical, and permanent naval stores and mess-traps. Armament Supply Officer, Takapuna .. .. 11/3/32 Stores. R.F.A. " Nucula" .. .. .. .. 12/3/32 Stores. R.N.V.R., Wellington .. .. .. .. 5/10/31 Stores. Native Department—Development schemes, North Auckland .. .. 16/12/31 Stores. Base Farm, Motatau .. .. .. •• 16/12/31 Stores. Development scheme, Ranana .. .. .. 3/2/32 Stores. Hnl'ipp T)omn.Ytvn.PYt t. District Office, Auckland .. .. .. 28/4/31 Cash and stores. District Office, Wellington .. .. .. 15/3/32 Stores. Post and Telegraph Department— Workshops, Wellington .. .. .. .. 11/1/32 Stores. Prisons Department—■ Prisons .. .. • • • ■ 16 Various Cash and stores. Public Works Department— District Offices .. .. .. .. 24 Various Cash and stores. Road and construction works .. . ■ 46 Various Stores. Workshops, Auckland .. .. .. • • 1/7/31 Stores. Waikaremoana .. • ■ • - • - 2/9/31 Cash and stores. Mangahao .. .. .. • • • • 2/9/31 Cash and stores. Workshops, Wellington .. .. .. ■ ■ 6/10/31 Stores. Lake Coleridge.. .. .. ■■ 23/8/31 Stores. Waitaki .. .. .. • • ■ • 12/9/31 Cash and stores. State Forest Service — Auckland .. .. .. • • ■ • 30/9/31 Cash and stores. Rotorua .. .. ■ ■ • • • • 28/1/32 Cash and stores. Palmerston North .. .. ■ • ■ • 31/8/31 Cash and stores. Nelson .. .. •• 31/1/32 ■ Cash and stores. Hanmer Springs .. .. • • • • 19/1/32 Cash and stores. Christchurch 31/8/31 Cash and stores. Tapanui .. .. •• •• 23/11/31 Cash and stores.