8.—13.

The Accountant, Government Advances to Settlers Office. The whole receipts and expenditure of the Management Account should be shown as provided by clause (2), section 50, of "The Government Advances to Settlers Act, 1894." 14th June, 1902. J. H. Fowler, Audit Officer.

Mr. Fowler,— I consider that the " Statement of Management Account " as set forth complies with section 50, (2), of the Act, and that the gross receipts and expenditure are not required to be repeated in the " Statement of Management Account," as they are already shown in the cash statement. The section merely requires a full and complete statement of the account. P. Heyes, Accountant. 18/6/02.

The Controller and Auditor General. Please see reply to my memo, asking that the " whole " receipts and expenditure should be shown in Management Account. 20th June, 1902. J. H. Fowler.

It is the duty of the Audit Office to require compliance with the express direction of the statute; and accordingly, if the whole receipts and expenditure of management be not shown in the Management Account, under the Act the Audit Office must take exception to such account. 20th June, 1902. J. K. Warburton, C. & A.-G.

The Controller and Auditor-General. I am advised that the accounts as submitted are correct in form, and carry out the intention of the Act. The same question was raised five years ago, but ultimately the accounts were passed. I trust they will be on this occasion also. John McGowan, Superintendent. 23/6/02.

The Superintendent. The statute requires " the whole receipts ... of the Management Account." Are the whole receipts given in the account submitted ? If not, the Audit Office cannot pass the account. J. K. Warburton, C. & A.-G. 28/6/2.

The Controller and Auditor-General. Yes. The whole receipts are given in the accounts submitted. J. McG. 1/7/02.

The Superintendent. Will oblige by stating whether the whole receipts and the gross receipts differ, and, if they do, in what respect. J. K. Warburton, C. & A.-G. 1/7/2.

The Controller and Auditor-General. Ido not find the word " gross" used in the Act in connection with the accounts. These are submitted in the form in which they have been passed in previous years. I must therefore leave you to deal with them as you think fit. John McGowan, Superintendent. 1/7/02.

The Superintendent. It was unfortunate, as it was reasonable, that Mr. Heyes in using the word gross, and using it apparently as synonymous with whole, should have been assumed to be speaking for the Superintendent. But, passing this over, the Superintendent appears to be under a misapprehension in stating that the Management Account in the balance-sheet shows "the whole receipts of the Management Account." The whole receipts and expenditure of the Management Account must obviously be the same as in the Advances to Settlers Office Account. Then, the Audit Office is very sorry to find that it will not be in accordance with law to apply the moneys in the Profit and Loss Account to writing off the loan-flotation charges, and is con- • sequently not prepared to certify that the amount of £30,000 of such moneys can lawfully be so applied. J. K. Warburton, C. & A.-General. Ist July, 1902.

The Solicitor-General. Will you please advise on the position. John McGowan, Superintendent. 3/7/02. Eeference approved.—C. H. M. 3/7/02.

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