B.—l [Fr. 111.

Printing and Stationery Department. The operations of this Department, cover the printing and stationery requirements of all Government Departments and the turnover has exceeded £160,000 per annum during each of the past ten years, reaching a peak of £248,357 in 1929—30. Towards the end of 1933 the Education Department arranged for the public educational authorities whose funds are either entirely or to a substantial extent provided from the Consolidated Fund to be allowed to purchase stationery and printing supplies from the Government Printer, but up to the present little business has resulted from this arrangement. Manufacturing printing comprises approximately 80 per cent, of the turnover, while trading activities in stationery, typewriters, &c., amount to approximately 20 per cent, annually. The nature of the Department's business was such that it was eminently suitable to apply strictly commercial principles in the accounting system, and to produce annually Trading and Profit and Loss Accounts and balance-sheet. Commencing in .1924 a comprehensive system of cost accounting was introduced whereby more complete control became possible over the various factors in production—comprising labour, materials, and departmental and overhead expenses. Cost of production of completed jobs is now accurately ascertained, and more exact estimates of costs have become possible. Staff time-sheets allocated to jobs, priced at varying rates and returned daily, are charged to Productive Wages (directly chargeable) and to Establishment Wages (charged through on cost) and these, together with Stores issued dockets, entail very careful preparation. A useful check upon the accuracy of the system is gained by a comparison of works in progress scheduled from uncompleted job cost sheets with the amount shown by the Cost Control Account. The degree of accuracy revealed has been very satisfactory considering the volume of detail work involved, and the costing system adopted has worked well. The following table shows the results obtained during the periods mentioned.

_ It will be seen from the above table that during each year a profit (after allowing for interest on capital and depreciation) has been returned from the Department's activities with the exception of the year ended 31st March, 1932, when a loss (£3,249) was incurred. The capital as shown in the accounts is arrived at by the excess of assets over liabilities at the end of each year, and consequently fluctuations occur according to changes in stocks, sundry debtors and creditors, &c. These fluctuations are shown in the following table for the years mentioned : — £ £ £ 1923-24 .. 188,399 1927-28 .. 225,594 1930-31 .. 215,584* 1924-25 .. 216,097 1928-29 230,745 1931-32 .. 217,240 1925-26 .. 219,236 1929-30 .. 226,856 1932-33 .. 190 711 1926-27 .. 240,519 It is considered that the capital account should be an amount based upon the valuations of such assets as are used in producing revenue together with a proportion of cash invested in floating assets as stocks, &c. The accounting for purchases ancl subsequent issue of all Government stationery requirements involves the keeping of complete stock records controlling material and stores on hand. The substantial agreement of records with actual tallies of stock-taking periods evidences very satisfactory control. Audit of Government Stores. The work of this section of the Audit Office has proceeded steadily throughout the year, but as several of the Stores Audit officers were for a considerable period almost wholly occupied with investigations in connection with the Native land development schemes and the Royal Commission on Native Affairs the number of accounts examined during the year has fallen to 252, as compared with 306 in the previous year. Unfortunately, insufficiency of staff has prevented my giving that attention to some of the larger Departments of the Service that I should have liked. As, however, all Departments are now working on revised rules, the check within the Departments themselves should be of great service, provided those rules are strictly adhered to. Speaking generally, the work of auditing Government stores has been satisfactory, and I am pleased to record that the Railway Department has now issued its revised Stores Rules and Instructions,

XV

! I i j ■ i | Productive i ® sta Mish- ; Materials Office and Year. Turnover. Wages ment used in Administra- I Profits. Wages. Production, tive Costs. £ £ £ £ £ £ 1923-24 .. .. 191,303 78,403 22,500 36,643 22,560 876 1924-25 .. .. 220,910 80,809 25,508 40,561 26,210 i 13,685 1925-26 .. .. 233,891 87,704 28,762 41,545 29,424 ; 3 245 1926-27 243,833 88,285 28,968 43,153 31>16 11'328 1927-28 .. .. j 247,765 87,229 29,215 43,741 33,469 12,637 1928-29 .. .. 229,987 84,157 28,507 37,412 33,870 2 813 1929-30 .. 248,357 85,367 28,408 46,891 34,549 7,611 1930-31 .. .. 234,238 82,782 27,162 42,658 34,069 4^378 1931-32 .. .. 162,794 55,424 20,025 30,012 31,142 Loss 3,249 1932-33 .. .. 167,607 44,954 17,007 28,806 28,625 10,949