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MEMOEANDUM BY THE CONTEOLLEE AND AUDITOE-GENEEAL. The Hon. the Colonial Teeasueee. In signing as correct the Appropriation Account for the year ended on the 31st March last, I feel it my duty to append the following remarks, and to request that you will lay the same before the House of Eepresentatives. In former years money was expended, under the authority of section 4 of the annual Appropriation Act, in the purchase of railway plant, which was charged to a Suspense Account, which was again credited, and the expenditure charged to the votes as the material purchased was used upon each. In 1884-85 this system was abandoned, and a vote was taken for the material for each line, but the balance outstanding under section 4 was left undisposed of, and now stands at £332,161 17s. 7d. This ought to represent material not yet used on any line. The introduction of a separate vote for material for each line has put an end to the system of crediting the section 4 debit, by which it would have been got rid of. If the present system is to be continued parliamentary authority will be required to write off the balance referred to or otherwise deal with it as may be thought right. James Edwaed EitzGeeaed, 26th May, 1886. Controller and Auditor-General.

Authority: Geobqe Didsbury, Government Printer, Wellington.—lBB6.