7

CASE OF MR. MACANDEEW

D.—No. 1.

body of the warrant makes the money payable, except in cases where these parties give written authority to some one else to receive. Was the receipt for the Immigration money signed by the parties named in the warrant ? No, it was only signed by one of them. By Mr. Walker!] —Do you remember whether there were two names to whom the money was made payable in the warrant ? Yes, there were two —Mr. Macandrew and Mr. Reynolds. Is it usual in such cases to pay the money to the acknowledgment of only one person ? Not without a written authority from the other. By the Chairman.'] —Did you call the Treasurer's attention to this discrepancy? I did some time afterwards, and he sent me to speak to Mr. Reynolds on the subject. What was Mr. Reynolds' reply ? He declined to sign. The Speaker!] —Will you explain how Voucher No. 437 was " set right," as stated by the Superintendent ? Subsequent to the audit, a new warrant, drawn in favour of James Macandrew and Co., was issued by the Superintendent, and a new voucher, signed by James Macandrew and Co., attached. The original warrant is in my possession. By the Chairman!] —In reference to Voucher 921 a, Provincial Agent at Invereargill, £800, please explain this transaction ? Captain Elles, as Receiver of Land Revenue, advances to the Agent at Invereargill a monthly sum of £800, for which he receives the Agent's drafts upon the Provincial Treasurer. These drafts are sent by Captain Elles to Mr. Logic, Treasurer of Waste Land Board, who presents them to the Provincial Treasurer, and the amounts are passed at once through the books. Are there any amounts in Mr. Price's hands which do not appear by the cash-book to be at once credited to the Treasurer ? There are not. By the Speaker.'] —ln accounting for an apparent deficiency in the balance on the 30th June, the Superintendent states it to arise " from the mode in which many payments in the country have been hitherto made." Can you throw any light on this point? The only case, to my knowledge, is that of the public works in the immediate vicinity of the town, in which from £250 to £300 might occasionally be out for two or three days. How does the fact that " the disbursements at Invereargill have been paid before the warrants have been signed," account for the discrepancy between the cash and Bank balances ? Ido not understand how it can have anything to do with it. • By the Chairman.]- —The Auditors' Report recommends that all cheques drawn and deposits made should pass regularly through the cash-books —did you ever recommend this ? Yes, I recommended that this should be done, in a report which I made before I entered on my duties ; but the Treasurer declined to adopt my suggestions. By the Speaker!] — Have you a copy of the report you allude to? I have. (Copy produced. Appendix P.)

Feidat, December 14, 1860. At a Meeting of the Committee on the Public Accounts, &c, held the 14th December, 1860. Present I—Messrs.1 — Messrs. Gillies, Dick, Tarlton, Walker, and the Speaker; Mr. Gillies in the Chair. A. W. Moeeis, Esq., examined. By the CJiairman.~] —Were you appointed by the Superintendent as Auditor of the Public Accounts under the Audit Ordinance, and at what date were you appointed ? I was; the particular date I cannot tell, as I received no official notice beyond accidently seeing it in the Provincial Gazette. When did you commence your labours ? After the 26th of July ; a considerable time after my appointment. Will you explain the reason of the delay between your appointment and your entering on your duties ? We wished our duties defined, and the Superintendent being absent we could not obtain definite instructions until his return. Did you and the other Auditors apply to the Superintendent for instructions, and did you receive any. If so, what were they ? We did. I now produce the instructions we received, dated 16th and 26th July, 1860. (Vide Appendix A and B.) Are the reports now produced and submitted to the Council the only reports given in by the Auditors ? They are. Can you give any information relative to Voucher 437, Immigration per "Gala," £1712? Nothing more than that at one time I was authorized by J. Gladstone and Co. to draw the immigration money jointly with Mr. Macandrew, and invariably signed the necessary receipts along with him. I received, notice, either verbal or written, that I was conjoined with Mr. Macandrew in receipt of the money. On my intimating to Gladstone and Co. my desire to be relieved from this duty, Mr. Reynolds was substituted for me. Can you give any information relative to Voucher 738, Clutha Coal Field, £1000 ? Our notice was attracted by a writing across the face of the warrant for this payment. The payment was charged to Clutha Coal Field, while the body of the warrant and voucher appeared to be for a Bill of Exchange. The transaction we could not understand, and applied to the Treasurer, who could afford us no information on the subject. I applied to the Superintendent for explanation, and he told me he would instruct Mr. Logan (Superintendent's clerk) to lay the necessary papers before us. On application to Mr. Logan immediately prior to the 4th September, he stated that he had no instructions from the Superintendent on the subject. We took considerable trouble to investigate the matter, but could obtain no satisfactory information. Did you endeavour to ascertain the cause of the discrepancy between the cash-book balance and the Bank balance at 30th June, 1860 ? We did. The Treasurer's statement was that he had frequently largo sums in his hands, and that the mode of keeping the Southern accounts caused an apparent deficit which did not appear by the books. I made several trial balances between 30th September, 1859 (the previous audit), and the 30th June, 1860. At the date of the previous audit there appeared to be a surplus in. the Bank of £23 6s. 2d.;