8.—9.

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As the Office feels bound to observe all the reasonable directions of clients in the management of their own affairs and the disposition of their funds, and as the raising of obstacles to the car tying-out of such an ordinary business arrangement as paying funds to a client's bank account would certainly be regarded as an unfavourable feature of the Public Trustee's management and one militating against pretensions to business methods, representations have been made to the Right Hon. the Minister of Finance to deal with the matter by legislation. Audit and Checks against Fraud. 77. Every effort has been made to protect the Office against fraud, and it is confidently felt that the precautions taken provide, as far as practicable, for the safety of money and other property controlled by the Office. The audit of the accounts has been kept as far forward as possible, and where it has been found that the Audit Department is unable to make its inspections sufficiently promptly, experienced and qualified Public Trust Accountants have been detailed to carry them out. This practice will be continued, so that no office will remain for any length of time without full investigation of its books and accounts. Official instructions covering a complete system of check have been issued to the Department's officers, and steps are taken by report and inspection to ensure that they are carried out. The system and the relative instructions have been perused by the Controller and Auditor-General, who has expressed his approval, and it is confidently felt that they provide, as far as practicable, for the protection of the Office and its clients. Officers are at all times encouraged to submit any suggestions they may have to make in the direction of strengthening the system. The matter is under constant consideration, and any further check's that are at a later date thought to be practicable or desirable will be adopted. LEGAL DIVISION. 78. When the policy of decentralization was adopted it soon became evident that to derive the full measure of benefit from the change of system it would be necessary to attach to the staffs at the principal centres trained legal officers to deal on the spot with such legal matters as required immediate attention, or special expedition. Accordingly, District Solicitors were appointed at the Auckland, Christchurch, and Dunedin Offices, and also at Wellington District Office. The duties and responsibilities of the District Solicitors were carefully defined and circumscribed. The scheme was found to make for greater expedition, and proved entirely satisfactory. As the growth and expansion of business demanded it, further District Solicitors were subsequently appointed at Gisborne, Invercargill, Palmerston North, and Hamilton, each District Solicitor in these latter cases combining with his legal duties the office of District Public Trustee. 79. All applications to the Supreme Court for a grant of probate or administration or proceedings to have foreign grants of administration resealed in the Dominion are made or taken at Wellington. So also, in the absence of special circumstances, all motions or petitions to the Supreme Court are filed and heard in Wellington. Opinion work is reserved for the personal attention of the Office Solicitor at the Head Office ; but the District Solicitors have their time fully occupied with conveyancing-matters arising out of the administration, preparing local wills, effecting settlements of transactions, attending to Magistrate's Court work, &c. 80. During the year the legal work- of the District Solicitors in the North Island was inspected by the first Assistant Solicitor. The inspection showed that the work is being efficiently and expeditiously carried out at the branches visited. In cases where improved methods might with advantage be adopted suggestions were made to the branch officers accordingly.