D,—No. 3

6

SECOND REPORT UPON PUBLIC ACCOUNTS.

Report for Parliament. Erom these Monthly Accounts are prepared the Quarterly and Yearly Statements published in the Gazette, as required by the Revenues Act. 25. During the past year great delay occurred in making up and publishing the Accounts This arose partly from the change in the form of the Account introduced by the Public Revenues Act, partly from the difficulty of incorporating outstanding transactions, especially under the head of " Advances '" into the new system ; and partly from technical difficulties in the adjustment of the Accounts arising out of the mode and date of operation of the financial laws of the Session of 1867. But as these causes of delay have disappeared, it is needless to refer to them further. No delay for tho future will be found to arise except it bo from the neglect of Officers to furnish their Accounts punctually on the last day of each month. The probabdity of delay from this cause will, however, be largely reduced, should the Government think fit to adopt the plan recommended in this Report of making the "Teat bull, of the payments by cheque directly from the Treasury. The Accounts in that case to be received will be confined to those of Receivers, and to the Accounts of the Military Paymasters. 26- Another source of delay will be avoided by the practice already initiated in the Treasury and Audit Office, by which vouchers are audited before payment, and tho Vote or Account against which the expenditure is to be charged is fixed at the same time. 27. But as regards the Accounts still to be received before the Monthly Account can be prepared we third, that greater stringency is necessary than has hitherto been the practice. The Revenues Act places large power m tho hands of the Government for enforcing punctuality in sending in Accounts We think that these powers should be used more vigorously than heretofore. It is a great and quite unnecessary detriment to the Public Service that the completion of the Accounts of the Colony should be delayed, because some few Officers fail to send in their Accounts at the time required by law • and we think that in every case where such neglect occurs, the fine imposed by the Act should be enforced and should only be remitted upon good and sufficient cause being shown by the Accounting Officer for the delay. ° 28. It has been made a matter of complaint that in the published Financial Accounts the totals of Receipt and Expenditure have been unnecessarily swelled by the introduction of separate Accounts which, though necessary as subsidiary and explanatory, ought not to be incorporated into the body of the Accounts current; and it may be argued that this practice, though technically correct, tends somewhat to obscure an. account which is intended for general information. It is very desirable that the Accounts should be published in such a form as will not only satisfy professional Accountants of their completeness and accuracy, but as will present to ordinary readers, in the simplest and most intellio-ible manner, the whole transactions of the Government in the management of the Public Moneys Chano-es however, have been and are being made, by which the form of the Accounts is beino-' gradually simplified ; and the modifications in the Revenues Act which were made during the recent' Session in accordance with the suggestions of the Commissioners, will, we think, tend still further to the same desirable result. 29. We see no reason to doubt that for the future the Account for each month will bo prepared before tho close of the following month, and therefore that the Quarterly and Yearly Abstracts of Account will be prepared and published within the time required by law. These Accounts state under general heads what the actual Cash Receipt and Expenditure of the Colony has been for the period to which they relate. They also state tho sums advanced but not yet accounted for, and therefore not yet_ charged as Expenditure. They distinguish the Receipt and Expenditure of Current Revenue derived from taxation, from those of borrowed money, of the Land Revenue, and of money held in trust by the Government for private persons. They thus contain full information as to tho management of the Public Moneys. ° 30. The changes in the Treasury Regulations which will be required to give effect to the recommendations contained in this Report are submitted in an Appendix hereto. 31. We transmit herewith the minutes of our proceedings, and submit the same, together with our Reports, to your Excellency's consideration. James Edwaed FitzGeeald, (Chairman.) C. .1. PIIABAZYN. J. WoODWABD. C. T. Batkin. William Seed. Wellington, 18th November, 1868.