B.— 1 [PT. ll],

Department. Amount unpaid. Forestry— £ s. d. £ a. d. Auckland Region . . . . 87 17 1 Rotorua Region . . . . 15 5 5 Wellington Region . . . . 333 111 Nelson Region .. .. 2,988 6 10 Westland Region .. .. 369 3 0 — 3,793 14 3 Lands and Survey — North Auckland District .. 707 6 3 Auckland District .. .. 11 17 6 Gisborne District . . . . 0 13 0 Hawke's Bay District . . 167 1 9 Nelson District .. .. 283 5 11 Westland District .. .. 1,381 611 Southland District .. . . 133 14 4 — 2,685 5 8 Marine .. .. . . . . . • 604 6 2 Mines 7,487 5 0 Native .. .. .. .. •• 1,994 18 7 Public Works 27 0 6 State Coal-mines .. .. .. .. 2,243 2 6 Total .. .. .. ..£18,835 12 8 Creation and Issue of Adhesive Stamps. Sections 10 and 11 of the Stamp Duties Act, 1923, vest the authority for the creation of stamps for revenue and postage purposes in the Stamp Duties Department, whilst the creation of stamps by the Postmaster-General for postage purposes only is permitted by section 13 of the Post and Telegraph Act, 1928. In August, 1935, the then Prime Minister advised the Audit Office that it had been decided to entrust the sole creation of adhesive stamps for revenue and postage purposes to the Post and Telegraph Department, and he promised that any necessary legislation would be placed before Parliament during the next ensuing session. The omission to present the necessary measure during the session of 1935 was the subject of comment in the Controller and Auditor-General's report of last year, and I have again to draw attention to the fact that the change of control has not yet been sanctioned by Parliament. Audit of Accounts of Public Stores. During the year Stores Audit Inspectors made inspections of 349 financial and store accounts in the following Government Departments : Prisons, Public Works, Health, Printing and Stationery, Naval Defence, Defence, Air Department, Education, Marine, Mines, State Forest Service, Industries and Commerce, Tourist and Publicity, Agriculture, Legislative, Police, Mental Hospitals, Native, Railway Workshops and Stores, Post and Telegraph Workshops and Stores, Lands and Survey, Internal Affairs, Scientific and Industrial Research, and External Affairs. More offices and accounts were inspected than in the previous year, but owing to the increase in departmental activities and the shortage of trained officers it has not been possible to examine all the accounts subject to audit by this Branch. All matters arising out of inspections and calling for comment have been brought to the notice of the Departments concerned and the Treasury and, where necessary, suggestions have been made for the improvement of the systems in force in respect to the financial accounts and accounting for Government stores. A continuous audit of the expenditure and the financial and store accounts of the New Zealand Division of the Royal Navy has been carried out, but owing to an increase in the accounting work of the Naval Defence Department it has not been possible to keep this section of the work as up to date as I would desire. It is proposed to remedy the position by an increase in the staff.

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