H.—29.

' ACCOUNTS DIVISION. REPORT OF L. C. SCOTT, ACCOUNTANT. The budgeted position for the 1939-40 your provided for a net expenditure of £1,032,954. Some re-organization of budgeted activities was necessary owing to the outbreak of war. This factor, and a saving from the fruit-export guarantee of £16,456, coupled with a buoyancy in credits of £14,391, enabled the year to be cleared with a net expenditure of £970,337. Finance additional to the figures in the appropriations was necessary. This was mainly to provide for increased costs of raw materials for superphosphate-manufacture. £83,924 was involved, of which £81,510 related to superphosphate subsidy. War exigencies have demanded some measures of restrictive accountancy influence. These have had the usual " limiting " effect in the achievement field of agricultural progress. On the other hand, the liability that such measures would have irritating effects was mitigated, in that all concerned were fully seized of and readily recognized the need for expenditure in aid of production to take precedence over all other agricultural expenditure requirements. The following is a summary of the vote : — 1 Expenditure D. , Revenue .. . . Appropriated. Paid out ' Appropriated. deceived. £ £ £ £ Administrative services .. .. 542,358 509,541 121,345 128,982 Payments under statutes .. .. 104,000 95,861 2,500 2^390 Miscellaneous advances, &c. .. .. 523,191 515,921 12,750 19,614 Totals 1,169,549 1,121,323 £136,595 £150,986 Less credits-in-aid.. .. 136,595 150,986 Net totals .. .. .. £1,032,954 £970,337 In the examination of receipts (£150,986) and payments (£1,121,323) resulting in the net excess of payments (£970,337), it is interesting to note that " Administrative services " called for payment, totalling £509,541 and yielded £128,982 credits (net being £380,559) ; that " Payments under statutes " required £95,861 and yielded credits of £2,390 (net being £93,471) ; and that " Miscellaneous advances grants, subsidies, &c." cost £515,921 with credits of £19,614 (net being £496,307). As usual, the vote outgoings have been, comparatively, much more substantial than incomings. There are, however, other receipts (£104,935) not covered by vote figures (Nauru and Ocean Islands, £35,344 ; Slaughtering and Inspection Act, £57,388 ; Dairy Industry Act, £2,14-7 ; Orchard and Garden Diseases Act, £6,477 ; Sundry, £3,579). Administrative Services. —The major expenditure factor is remuneration for personal services (£338,869) and for the efficient functioning of those personal services locomotion (£63,640) is essential. Other working-expenses (£107,032) have not been excessive for the proper maintainance of operations embracing three large farms and many small areas, two extensive laboratories, a seed-testing station, a publications section, numerous grading-services, and a number of research and demonstrational services, together with provision of office accommodation, telephones, stationery, and staff transfers necessary in connection with a staff of 1,055 persons (exclusive of casual labour). Payments under Statutes.—Compensation for diseased live-stock (£36,694), subsidies for destruction of rabbits (£28,317), subsidies to encourage production of " remounts " (£3,850), and grants for educational purposes (£27,000) give a total of £95,861. The contrast between this figure and £107,032 for the working-expenses of the administrative services merits quiet consideration. Miscellaneous Advances, Grants, Subsidies, rise.—The payments under this section have, as usual, been wide in their distributive incidence. Carriage of lime, fertilizers, and farm produce absorbed £415,434 ; assistance to fruit industry, £8,544 ; noxious weeds eradication, £58,615 ; assistance to cow-testing organizations, £10,545 ; assistance to pig industry, £8,282 ; other items, £14,501. The normal expectation is that the main volume of work of the Accounts Division will be in direct relationship to the actual monetary requirements of the Department, but in recent years there has been a steadily increasing volume of problems of statistical and investigational significance for attention. The probable, and latterly the actual, effects of war have emphazized how necessary it is to have readily available all types of more or less specialized statistical information. Thus demands on the activities of Investigational and Statistical Section have been constant and varied. The Publications Section, which works under the Accounts Division, has experienced the usual steady demand for bulletins and leaflets. The greatly increased circulation of the Journal of Agriculture, to which I referred last year, has been maintained. Revenue from the advertising pages of the Journal appeared to falter, firstly, from import restrictions and, secondly, from war effects, but recovered very satisfactorily, a most gratifying indication of the merits of the publication as a publicity medium. My staff and officers associated with general accountancy matters throughout the Dominion have again accorded me a year of hearty support and co-operation.

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