B.—No. sa.

Appendix C. Accountant's Eepoet, No. 2. Sib, — Colonial Commissioner's Office, "Wellington, 29th March, 1867. In reply to your inquiry respecting the Imperial account against the Colony I have the honor to state : —■ 1. That I have not yet received the Auditor- General's Report upon the " Eation Account;" but from a Memorandum received this morning from the Audit Office I find that further information is required, and has been requested from the Commissariat, but has not yet been received. The Memorandum also directs the attention of the Colonial Commissioner to a statement made by the Commissary-General, to the effect that the charge for rum in the Great South Eoad account (amounting to £3300 7s. 2d.) had been made in error. 2. The only document yet received towards the completion of the Imperial account is a Memorandum of " Supplementary Items in Commissariat Accounts," dated 2.lst February, 1867, which came to my hand on the 7th instant, and comprises : — £ s. d. (I.) Cost of supplies, March to May, 1866, and amounts to ... 12,400 18 4 (II.) Pay of Militia in Commissariat Transport Corps, advanced to Mr. McPherson, 7th April to 26th July, 1866 (less a refund) 1,346 12 10 (III.) Transport by contract at Tauranga, April to October, 1866 262 0 9 For the first item vouchers are in the Audit Office, and are now under examination. For items 11. and 111., vouchers are in this office, and the items are supported by the vouchers. 3. Respecting the " Statement of Payments made by the Colony to Imperial Officers," I have to report: — ♦That a Memorandum (marked A.I) was furnished to the Commissary-General of these payments on the 15th January last, and was returned by him to the Treasury on the 7th instant with sundry marginal annotations (some in pencil) ; also a letter from D. S. Hainley (marked B. 1), dated 12th February, 1867, stating that in comparing the " War Office" (query Colonial) statement with the claims rendered to the Colonial Government, he finds that only a few items correspond, and enclosing two statements of payments received from the Colony, and one of outstanding claims ; and further, a Memorandum by the Military Accountant, Greenwood (marked C. 1), dated 27th February, 1867, stating that the items (in his Memorandum), which have no corresponding vouchers noted against them, could not be traced in the accounts (those so noted are very few), and accompanied by a " Statement of all Amounts paid into the Chest by the Colonial Government." On the 27th February a " Detailed Statement of the Sums paid to Imperial Officers " was compiled, in compliance with the request of the Imperial Commissioner, and forwarded to Auckland by the first mail thereafter. This Statement crossed the Commissioner on his way down, but a copy was placed at his disposal on his arrival in "Wellington. "With the exception of an " Abstract of transactions between Principal Purveyor Adams and the Colonial Government, taken from Mr. Adams' Ledger" (marked D. 1), furnished to this office on 19th March last, no further information tending to the elucidation of the accounts has been received, nor anything in the nature of a complete Dr. and Or. Account between the Imperial and Colonial Governments. 4. In expectation of receiving more definite information from the Imperial Commissioner, for which it was understood the detailed Statement was required, no serious attempt has been made to do what the Imperial Officers deem impracticable, viz., to reconcile the Colonial Statement with their Abstracts and Memoranda. Under the circumstances above mentioned, I regret that I cannot yet present my final Report upon the accounts entrusted to me. I have, &c, /The Hon. Major Richardson, B. Smith, Colonial Commissioner. Accountant to Colonial Commissioner. * The documents referred to are kept for reference among the records. J. Eichaedson, Colonial Commissioner.

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AGAINST THE COLONIAL GOVERNMENT.