B.—L;(PT. IV].

PUBLIC WORKS DEPARTMENT—continued. I hereby certify that the Income and Expenditure Accounts and general balance-sheet, and the subsidiary accounts and balance-sheets for irrigation schemes in operation, and timber-supplies and sawmills, have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby, subject to the departmental notes as endorsed above. The following Audit comments are appended : — (1) The Profit and Loss Accounts and balance-sheet for irrigation schemes in operation, the Trading and Profit and Loss Accounts and balance-sheets for the Katikati, Makomako, and Whatoro Sawmills, the Tauraroa and Te Wera Quarries, and the Wellington Workshops have been prepared in the local offices from unaudited statements, which have been accepted by Audit for the purpose of this balance-sheet. (2) The book values of the existing assets purchased out of Plant, Material, and Stores vote, and of permanentway materials, do not agree with the stock-sheets submitted. (3) No charge has been made for interest during the construction of works. (4) Separate Revenue Accounts should be submitted for (a) all workshops, (b) railway-construction canteens. (5) The asset represented by accumulated expenditure from departmental vote (£2,172,065 10s. 6d.) should be allocated to the various works upon which the sum has been spent. (6) The value of the assets of the Hawkdun irrigation scheme (£3,700) transferred from the Mines Department is not reflected in the accounts. (7) The Lands Improvement Account should be recouped .for the purchase price of the land exchanged for the watershed of the Waikaremoana electric-power scheme and paid for out of this vote. (8) No payment has been made to the Main Highways Constuction Fund as provided by section 16(b) of the Main Highways Act, 1922, nor is any provision made in the accounts for such liability. (9) Expenditure from Public Works Fund, General Departmental, Buildings vote, on alterations to buildings, is capitalized, whereas in the opinion of the Audit Office portion of the expenditure is of a revenue nature. (10) Furniture purchased from General Departmental Buildings vote should be separately shown. G. F. C. Campbell, Controller and Auditor-General. PUBLIC WORKS FUND.—ELLESMERE AND FORSYTH RECLAMATION AND AKAROA RAILWAY TRUST ACCOUNT. (Section 383, Land Act, 1924.) Income and Expenditure Account for the Year ended 31st March, 1926. Expenditure. £ s. d. Incom.e. £ s. d. To Expenditure under section 6, Ellesmere Land By Rents from Crown lands .. .. .. 1,821 (i 8 Drainage Act, 1905— Interest on loans raised by Board .. .. 430 5 0 Rebates of rent .. .. .. .. 149 19 6 Rent irrecoverable .. . . .. 8 9 9 Improvements of Lincoln-Little River Railway 132 17 6 Cost of administration .. . . .. 83 11 5 Balance, being excess of income over expenditure, transferred to Accumulated Fund .. .. 1,007 3 6 £1,821 6 8 £1,821 6 8 Balance-sheet as at 31st March, 1926. Liabilities. Assets. Sundry creditors — £ s. d. £ s. d. Sundry debtors — £ s. d. £ s. d. Interest under section 6, Ellesmere Rents .. .. .. 57 5 10 Land Drainage Act, 1905 .. 439 5 0 Less Irrecoverable Account .. 8 9 9 Rents charged in advance ... .. 448 5 4 48 16 1 Administration .. .. .. 40 3 3 Treasury Adjustment Account .. .. 9,263 16 3 Improvement of line .. .. 132 17 6 1,060 11 1 Accumulated fund .. .. .. .. 8,255 1 3 £9,315 12 4 £9,315 .12 4 31st July, 1926. J. J. Gibson, Accountant, Public Works Department. I hereby certify that the Income and Expenditure Account and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby —G. F. C. Campbell, Controller and Auditor-General.

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