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PUBLIC DEBT SINKING FUND BRANCH. Statement of Liabilities and Assets as at 31st Mabch, 1936. Liabilities. £ s. d. Assets. £ s. d. Sinking Fund created under the provisions of Investment Account— 0 the Public Debt Extinction Act, 1910 ..3,258,955 19 4 Advances not due : Local bodies .. . . 1,616,410 310 Suspense Account •• 63 1 7 Instalments of principal overdue: Local bodies 12,028 16 11 Management Account .'! .. •• 33 12 0 Contingent liability of Mortgage Corporation Interest due to Consolidated Fund ill accordance under section 38 (2) of the Mortgage Corporawith section 12 (a), Repayment of Public tion of New Zealand Act, 1934 35 .. .. 1,-42,802 11 8 Debt Act 1925 £ s. d. Temporary advance to Local Authorities Branch 449 11 0 In hand at 31st March, 1936 .. 76,941 11 3 Balance of profits of Mortgage Corporation for the Overdue at 31st March. 1936 .. 17,486 14 8 year ended 31st March, 1936, payable m acAccrued at 31st March, 1936 .. 16,743 13 1 cordance with section 42 of the Mortgage Cor- lft . 111,171 19 0 poration of New Zealand Act, 1934-35 .. 23,402 10 0 in aHvanw .. 285 7 7 Interest overdue on. loans to local bodies .. 17,486 14 8 interest paia am ance .. Interest accrued on loans to local bodies .. 16,743 13 1 Cash at bank .. .. .. .. 441,185 18 4 £3,370,509 19 6 £3,370,509 19 6 Interest Account foe the Year ended 31st March, 1936. j) r £ s. d. Gr. Interest on invesfinents due to Interest on loans to £ s. d. £ s. d. Consolidated Fund in.accord- Settlers .. .. .. "L 449 7 7 ance with section 12 (a), Be- Workers 2,275 lb 11 pavment of the Public Debt Local bodies .. .. 59,374 9 1 Act 1925 — £ s. Pafd to Treasury .. ..88,015 311 123,099 13 7 In hand at 31st March, 193b .. 76,941 11 3 Less overdue and accrued at Overdue at 31st March, 1936 .. 17,486 14 8 31st March, 1935 ..67,389 6 7 Accrued at 31st March, 1936 .. 16,743 13 1 „ ~TZ ' - Profits from Mortgage Corporation ot JNew Zea--199,187 2 11 land for the year ended 31st March, 1936, in Less overdue and accrued at ' accordance with section 42 of the Mortgage 31st March 1935 .. 67,389 6 7 Corporation of New Zealand Act, 1934-35 .. 35,675 18 8 — 131,797 16 4 Interest on temporary investments . . 4,213 8 6 Conversion premiums .. .. 1,96714 5 Interest overdue at 31st March,l936, on loans to local bodies .. .. .. •• 17,486 14 8 Interest accrued at 31st March, 1936, on loans to local bodies .. .. .. •• 16,743 13 1 £131,797 16 4 Note—The assets of this Branch include local body investments transferred from the Advances Office Sinking Fund without legislative authority. See also departmental note on Advances to Settlers Branch Accounts. Geo. G. Rose, Superintendent. F. R. Jamieson, Accountant. I hereby certify that the Balance-sheet and accompanying accounts have been duly examined and compared with the books and documents submitted for audit, and correctly state the position as disclosed thereby, subject to the departmental notes enfaced thereon and to the following exceptions : (1) The contingent liability of the Mortgage Corporation should not appear among the assets of the Superintendent as it is not the property of the Superintendent. In terms of the legislation, so long as this liability exists, the surplus profits of the Corporation are payable to the Public Account and not to the State Advances Account; (2) the Interest Account is overstated to the extent of the profits of the Corporation which have been paid to the Public Account in accordance with the statute. —G. F. C. Campbell, Controller and Auditor-General)

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