A.—4.

108

taken from the English invoices and from the list of contract prices. The values of unservicable stores are entered, according to an old military regulation, at onefourth of the original cost. All issues are made on requisitions which come from the Commandant of the Forces, and are issued under his authority alone ; but issues of ammunition, being limited by regulation, are checked and sometimes altered by the Storekeeper All issues are entered in the " Issue-book " from the requisitions. No values are entered in this book. A more elaborate account is kept in a " Detailed Issue " Journal," which shows to whom the stores are issued, the date of issue, the several articles, and the value in two money columns, separating those issued from the store from those purchased from contractors in the colony Erom the above books the " Store Ledger " is posted, in which every article is kept under a separate head in columns, and the receipts and issues of each entered on the debit and credit side respectively The ledger is balanced every three months, and the balance is brought down so as to show the number of each article in store. The form of this account is that handed down by the Imperial Porces, and is nearly identical with that in use in the military stores in New Zealand. Stores, however, "on issue " with corps are written off the store ledger, and are not brought on any separate return, so as to show the articles belonging to the Government in the hands of military corps or individuals, nor is there any provision made in this ledger for showing the distinction between articles " on " issue " and those issued for consumption. It was, however, stated by the bookkeeper that the stores on issue, being all debited to one person, the Commandant of the Forces, could be readily obtained by inspection in a few minutes. The store ledger is the most important book in any store, but its value is seriously curtailed unless periodical examinations of the stock are made, and the balances in the book checked with those in the store, and the excesses or deficiencies, when allowed, brought into the store ledger Notwithstanding the very large amount of Government property for which this store is responsible, there has been no survey of the stock for seven years, the last having been taken in 1873. A book is also kept in this store, called the " Register of Accounts." It contains a list of the vouchers passed on to the Treasury for payment, comprising vouchers for the salaries and contingencies of the staff in the store, as well as for the stores purchased in the colony, and the date when each voucher was sent to the Treasury. A general ledger is also kept, which is credited with the sum voted by Parliament, and debited with the several sums charged against it, so as to show the unexpended balance of the vote at any time. The book-keeping in this department does not display so much care as that shown in other departments of the New South Wales Government. The scheme of account, with the exception of the store ledger, is unsatisfactory and inconclusive, and. no system of balancing is in use, so as to secure a detection of errors. The books, so far as relates to the money-values, were not written up. The books seem to be regarded rather as useful as general information than for strictly accurate account.

Eailway stores are purchased out of permanent votes contained in the Schedules to the Loan Acts, amounting to £300,000, the Stores Account is treated as a permanent Suspense Account, and is debited, and the Treasurer's Account credited, with the value of the stores purchased. The Stores Account is again credited, and the account of each separate vote debited, with the value of the stores expended upon each; hence the balance, at any moment, of the Stores Account represents the value of stores in hand. Stores are issued upon requisitions, stating the service or vote for which they are required, and are charged at their invoice t value. No percentage is added, whether they are issued directly to the lines or to 'the workshops, but the issue in both cases is treated as a final expenditure. The

The Bailway Store.