B.—l iPx. ll].

Cemetery Trustees — (a) Borrowing without authority of law, and unlawful payment of interest . . .. 3 (b) Failure to bank as required by law . . . . . . . . , . 19 (c) Failure to keep a Register of Burials as required by law . . . . . . 1 (d) Expenditure without statutory authority . . .. . . . . . . 3 (e) Miscellaneous .. .. .. .. .. .. .. .. 4 Schedule B. Unsatisfactory systems of accounts — (a) Financial . . .. . . . . . . .. . . .. 13 (b) Stores .. .. .. .. .. .. .. .. 19 Excessive sundry debtors, laxity in collecting rates, &c. .. .. . . . . 23 Profit and Loss Account: Balance incorrectly stated .. .. .. . . 4 Receipts and other items not verified owing to inadequacy or non-production of supporting evidence 17 Payments unsupported by receipts and/or vouchers .. .. .. .. .. 33 Inability to certify wholly to accounts owing to destruction of records by fire, &c. .. .. 3 Failure to keep an essential book of record . . . . .. . . . . 2 Cheques signed in blank form .. . . . . .. .. . . .. 5 Liabilities not included in accounts . . .. .. .. . . .. 4 Payments not certified or passed for payment by local authority .. .. .. 3 Miscellaneous .. .. .. .. . . .. .. . . .. 16 Schedule C. Green Island Borough Council .. " Unauthorized " expenditure in excess of legal limit. Expenditure on jubilee of borough. Grey mouth Borough Council .. " Unauthorized " expenditure in excess of legal limit. Making of grant to Mayor's Relief Fund. Kairanga County Council .. " Unauthorized " expenditure in excess of legal limit. Share of expenditure in connection with opening of Fitzherbert Bridge. Mangapu Drainage Board . . Rate levied in excess of the maximum provided by the Land Drainage Act and amendments. Napier Borough Council . . . . Disqualification of Councillor oil account of interest in freight contracts under co-ordinated road and rail scheme in excess of lawful limit. Nelson Hospital Board .. .. Bank overdraft in excess of lawful limit. Paparua County Council . . Payment of compassionate grant to widow of late employee. Patea Borough Council . . . . Expenditure on erection of shops of proceeds of land sold, contrary to provisions of special legislation in that behalf. Pongaroa Rabbit Board . . .. Refunding of rates to Native Trustee to be expended on destruction of rabbits. Raetihi Borough Council. . .. Disqualification of Councillor on account of amount of contract plus deposit thereon being in excess of £10. South Canterbury Hospital Board. . Payment of travelling-expenses incurred in attending meetings by members of the Waimate Hospital Management Committee. Taumarunui Hospital Board .. Bank overdraft in excess of lawful limit. Tauranga Borough Council . . Wiring of electric ranges free of charge. Thames County Council .. . . Expenditure of loan-moneys raised for forming, &c., main and subsidiary roads in the county, upon a main highway. Timaru Borough Council . . " Unauthorized " expenditure in excess of legal limit. Supply of milk to school-children. Surcharges. The Controller and Auditor-General is required by section 69 of the Public Revenues Act, 1926, to surcharge any officer who may be considered responsible for the loss of public moneys or stores. I have again found it necessary to issue a number of surcharges on account of monetary losses from the Employment Promotion Fund, and during the year twelve such surcharges were issued against officers of the Labour Department (Employment Division). The amount involved in these surcharges totalled £446 12s. 7cL, of which £l 10s. was confirmed by the Minister of Finance and the balance remitted by the Minister under the authority contained in section 71 of the Public Revenues Act, 1926. I mentioned in my last report that I

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