B.—l [PT. IT, Sup.] .

Balance-sheet at 31st March, 1925.

The balance-sheet has heen compared with the various supporting books, vouchers, and documents, and found to correspond therewith, but in the opinion of the Audit Office the Depreciation Reserve Account cannot be accepted as complying with the provisions of section 10 of the State Supply of Electrical Energy Act, 1917, which requires the establishment of a depreciation fund; and there is also no authority of law for the charging against Net Revenue Account of interest in respect of Depreciation Reserve moneys.—J. H. Fowler, Deputy Controller and Auditor-General.

WAIKAREMOANA ELECTRIC-POWER SUPPLY. Profit and Loss Account for Year ended 31st March, 1925.

16

1923-24. | 1924-25. 1923-24. 1924-25. £ s. d. £ s. d. £ s. d. £ s. d. 4,165 S 0 To Interest on capital .. .. •• •• •• 4,261 1 0 2,100 0 0 By Rental of plant leased to Wairoa Power Board .. .. 2,440 5 8 Depreciation on piant (2 per cent, on value of assets in Loss for year.. .. .. .. .. .. 3,295 12 4 1,408 11 0 operation) .. •• •• •• •• 1,418 10 0 3,473 19 0 Interest on Depreciation Reserve (4 per cent, on £1,408 lis.) 56 7 0 19 0 £5,735 18 0 £5,573 19 0 £5,735 18 0 3,473 19 0 Loss for year, as above .. •• •• 3,295 12 4 390 5 0 Loss carried forward at 1st April, 1924 .. .. .. 3,864 4 0 3,864 4 0 Accumulated loss to date carried to balance-sheet.. .. 7,159 16 4 £3 864 4 o £7,159 16 4 £3,864 4 0 £7,159 16 4 1 = — —I Depkeciation Besebve. £ s. d. £ s - d. £ s. d. £ s. d. 1,408 11 0 Balance carried to balance-sheet .. .. .. •• 2,883 8 0 1,408 11 0 By Balance at close of previous year .. .. .. 1,408 11 0 Interest .. .. .. .. .. .. 56 7 0 Amount reserved for year .. .. .. .. 1,418 10 0 _ £1,408 11 0 £2,883 8 0 £1,408 11 0 £2,883 8 0

1923-24. Liabilities. 1924-25. : 1923-24. j Asset.?. 1924-25. £ s. d. £ s. d. £ s. d. £ s. d. 79,583 6 9 Balance carried to general balance-sheet .. .. 82,455 5 9 11,431 10 10 Access roads and bridges .. .. .. .. .. 11,431 10 10 20 5 3 Sundry creditors .. .. .. •• -• •• 18,474 8 0 Pipe-lines .. .. .. .. .. .. 18,478 6 2 1 408 11 0 Depreciation reserve .. .. .. •• 2,883 8 0 25,443 0 0 Power-house building and machinery .. .. .. 25,905 18 5 6,625 1 11 Compensation for land .. .. .. .. .. 6,625 1 11 278 17 3 Headworks .. .. .. .. .. .. 278 17 3 2,950 15 9 Staff cottages .. .. .. .. .. .. 3,053 0 9 1,260 1 5 Workmen's huts .. .. .. .. .. 1,260 1 5 407 18 5 Workshop .. .. .. .. . . .. 436 17 11 Loose plant 1,000 0 0 Telephone-line to Wairoa .. .. .. .. 1,000 0 0 3,053 11 0 Survey, engineering, and office expenses .. .. .. 3,146 2 8 5,697 14 5 Interest during construction .. .. .. .. 5,697 14 5 76,622 19 0 77,313 11 9 525 0 0 Sundry debtors .. .. .. .. .. .. 865 5 8 Balance from Profit and Loss Account: Accumulated loss to 3,864 4 0 date.. .. .. .. .. .. .. 7,159 16 4 £81,012 3 0 £85,338 13 9 £81,012 3 0 £85,338 13 9