A.—4,

41

iii which the sum accounted for monthly by each Collector is entered and checked with the Public Account. When the Commissioner makes his inspection of any office lie takes with him a copy of the " Register of Declared Returns," from the date of the last inspection, and checks the cash-book in the office with the accounts so rendered. A complete set of registers are kept in the Audit Office of the rents due from selectors of land on deferred payment, and also of the rents due by the pastoral tenants, which are nearly identical with the registers kept in the Land Office. The Audit Office, however, does not consider itself responsible for the collection of these rents, nor does it surcharge the Collectors when rents are allowed to fall into arrear. When any case of neglect on the part of a Collector comes under their notice, the Commissioners call the attention of the Treasury to the default; but the responsibility of seeing these dues paid rests with the Treasury and the Land Office. The only object of keeping these registers in the Audit Office is said to be in order to prevent the embezzlement of the money by the Receivers or Collectors ; but this seems to be sufficiently provided for by the lists of tenants whose rents are in arrear, which are periodically published in the Gazette. A register is also kept in the Audit of the payments due under the land-tax. The Land-Tax Commissioner's "Classification Sheet," which is published in the Gazette, is 'a complete valuation of the properties on which the tax is payable. Alterations made on appeals are also published in the Gazette, and alterations are also made by the Registrar, arising from the changes in ownership of land. The Registrar makes up and publishes in the Gazette every six months a statement of the amounts payable by every man under the land-tax, and from this statement the Register in the Audit Office is made up and corrected periodically. The Audit Office has thus full information as to what payments are in arrear; but the Commissioners of Audit do not consider it to be a part of their duty to surcharge any one for deficient collections. If they observe payments falling into arrear they call the attention of the Registrar to the fact, and, should no notice be taken, their ultimate remedy would be to inform Parliament in their annual report. No detailed audit of the Customs accounts is effected by the Commissioners : this is left for the most part to the Inspector of Customs. The Commissioners do not interfere with the audit of the Railway receipts. They make a general inspection of the work in the Railway Accountant's Office every year, and also of the Railway store accounts. An account of the revenue received is kept in daily totals not detailed to the different heads of revenue. The totals are checked with the Bank-sheets rendered by each of the ten Banks daily. On the payment side, the Audit Office is not considered to have any control over the Ways and Means. Its control is confined to limiting the expenditure to the sums voted by Parliament, without regard to the source from which the funds are derived: that is to say, they would not refuse to sanction expenditure voted, even if the only moneys out of which payment could be made had been obtained without any authority by law. The control over the expenditure is effected by the certificate of two of the Commissioners to the legality of an issue being necessary before the Governor can sign a warrant, and by the countersignature of one being necessary to enable the Bank to issue. In order to effect this control the Commissioners keep a " Warrant-book," detailed under the votes of Parliament, in which each account is credited with the amount of the vote, and debited with each sum passed into warrant against it. The issuing balance of the vote is thus shown. A second book, called the " Order-book," is also kept, in which each account is credited with the amounts passed into warrant, as shown in the Warrant-book, and debited with the orders issued against each vote; the balance showing the unexpended balance of the warrant under each vote. 6—A. 4.