B.—l [FT. iv;

SMALL FARMS SCHEME —continued Balance-sheet as at 31st March, 1943 Liabilities Assets Capital — £ £ Land — £ £ Loan capital .. .. .. 2,142,841 Leased .. .. .. .. 80,268 Consolidated Fund .. .. .. 39,000 Unleased .. .. .. .. 3,624 Land donated .. .. .. 595 Purchase-price of areas being developed, including value of Crown and other 2,182,436 land set aside .. .. .. 412,017 Less credit in Land for Settlements ——-— 495,909 Account .. .. .. 10,892 Blocks under development— 2,171,544 Gross capital expenditure on development 1,853,100 Subsidies— Expenditure on live-stock, and farm Employment Promotion Fund .. 457,514 working .. .. .. .. 278,349 Consolidated Fund .. .. .. 511,873 Chattels (including store buildings) .. 67,283 969,387 2,198,732 Loan from Social Security Fund .. .. 3,161 Loan to Napier Harbour Board (Ahuriri Land set aside for small farms— Lagoon) . . .. .. .. 30,354 Crown Lands Account .. .. 60,029 Add accrued interest .. .. 4,107 Education Endowment Account .. 2,547 34,461 62,576 Water-supply schemes: Head works .. .. 7,443 Rent accrued : Crown Lands Account .. .. 273 Advances to small-farm occupiersCreditors— Current Account— £ Rent .. .. .. .. 67 Improvements .. .. 37,412 Miscellaneous (departmental, &c.) .. 10,387 Stock and chattels .. 46,967 10,454 84,379 Water Supply Account: Maintenance .. .. 1,060 Instalment mortgages .. .. 303,092 Undisbursed surpluses on realization .. .. 447 — 387,471 Payments in advance — Advances under share-milking agreements .. 6,259 Rent .. .. .. .. 240 Realization Account: Leased areas in course of Principal— £ realization .. .. .. .. .. 18,641 Instalment mortgages .. 150 Losses on blocks disposed of (not finalized) .. 78,870 Share-milkers'loans .. 116 Debtors — Current Account .. .. 31 Rent owing by small-farm occupiers .. 2,261 297 Principal— £ Interest — Instalment mortgages .. 1,127 Instalment mortgages .. 281 Share-milkers' loans .. 499 Share-milkers'loans .. 21 1,626 Current Account .. .. 30 Interest—• . 332 Instalment mortgages .. 2,616 Water levies .. .. .. 42 Share-milkers' loans .. 151 911 Current Account .. 2,674 Accrued interest on capital on blocks being developed 243,431 — 5,441 Rent Adjustment Account .. .. .. 946 Water levies .. .. .. 128 Writings-off in Suspense .. .. .. 13,757 Miscellaneous (departmental, &c.) .. 4,317 Capital Reserve : Special assets taken over at book — 13,773 value .. .. .. .. .. 39,453 Deposits held by dairy companies .. , 1,103 Treasury Adjustment Account .. .. .. 296,033 Less reserve .. .. .. 275 ■ 828 Interest Adjustment Account .. .. .. 4,289 Interest unrecouped on development expenditure .. 243,431 Losses in Suspense Account .. .. .. 13,757 Subsidies in respect of blocks disposed of— Employment Promotion Fund .. 37,603 Consolidated Fund .. .. .. 16,556 54,159 Revenue Account: Balance carried forward .. 255,410 £3,813,433 £3,813,433 Notes. —(a) Profits or losses from farming operations on blocks under development are included in the Revenue Account only when the final position is ascertained on realization of the block ; (b) interest on expenditure on blocks under development has been credited to Revenue Account only to the extent that trading results have enabled it to be met. The balance has been credited to the balance-sheet item " Accrued interest on capital on blocks being developed, £243,431." R. G. Macmorran, Under-Secretary for Lauds. G. I. Beeson, Chief Accountant. 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, subject to the departmental notes enfaced thereon and the explanatory notes dealing with departmental accounts generally as appearing at commencement of parliamentary return 8.-l [Pt. IV]. The following comments are appended : (1) the account does not bear a charge for the cost of expenses incurred by Departments administering the scheme, other than a reduced charge for the supervision of the erection of cottages and milking-sheds ; (2) it is unlikely that the realizable value of certain properties is equal to the development expenditure thereon.—Cyril G. Collins, Controller and Auditor-General.

6—B. 1 [Pt. IV

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