B.—l [PT. I].

PUBLIC ACCOUNTS, 1934-1935

PUBLIC ACCOUNT CASH BALANCE INVESTMENT ACCOUNT.

A. D. Park, Secretary to the Treasury. B. C. Ashwin, Second Assistant Secretary to the Treasury. The Treasury, Wellington. i.oth June, 1935. The foregoing accounts have been examined and are certified with the following exceptions: (1) The total of the balances as shown in the individual sub-accounts which constitute the Public Account, amounting to £10,702,676 2s. lid., is overstated owing to transfers made between sub-accounts being shown so as to increase the total balance of the borrowing sub-account without decreasing the total balance of the lending sub-account. (2) The credit balances shown as " Cash "in the individual sub-accounts, and which amount to £5,613,313 18s. 5d., are overstated by an aggregate amount of £484,000. The latter amount represents sums paid from the Public Account by way of investment, and was not held as " Cash " in the Public Account as shown. (3) An amount representing a saving on exchange has been charged against Vote: Naval Defence. As there appears to be no provision made for charging this amount against the Vote, the amount should, in my opinion, be charged to section 55 of the Finance Act, 1932. The legal aspect of this matter is now under consideration by the Crown Law Office. Note. —This certificate is given subject to further comments which will be made in my annual and subject also to the final audit of certain vouchers, which, owing to the post-audit system provided for by the Public Revenues Act, 1926, cannot be completely audited before the date at which the abstract is required bv the Act to be certified. G-. F. C. Campbell, Controller and Auditor-General, 12th June, 1935. Treasury Notes. 1. As shown in the summaries on the next page, the balances of accounts amounting in the aggregate to £10,702,676 2s. lid. are made up as follows:-- g _ d _ Cash .. .. 5,129,313 18 5 Imprests .. .. • • • • • • 200,312 15 11 Investments .. . . • • • • • • 5,373,049 8 7 £10,702,676 2 11 In order to keep idle cash balances down to a minimum and save interest charges the funds of one account are temporarily invested under the provisions of section 39 of the Public Revenues Act, 1926, in the Government securities issued by another account. The cash balance of the lending account is decreased by the amount of the investment, but the total balance consisting of cash and investments is not affected. 2. The £484,000 of investments referred to are shown in the Public Account Cash Balance Investment Account, and in the summary on the next page. The amount represents a general temporary investment of cash not immediately required for expenditure. 3. The amount in question (£2B 7s. 2d.) is an exchange premium received on remittance of funds to an imprestee in Australia, and Vote: Naval Defence has not been charged with anything beyond the expenditure for naval purposes. A. D. Park, Secretary to the Treasury.

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Year Year ended 31st March, ended 31st March, EXPENDITURE | 1935. 1934. £ s. d. Balances at end of Year,— £ s ' B " " A />.19,379,000 0 0 Cash •• Dr. m,000 0 0 Investment Account — 19,379,000 0 0 Securities held .. .. • • • • • • • • • • Q00 Q 0 Totals .. .. • • • • • • • • • • II