B. —1 [Pt. IV].

DEPARTMENT OF AGRICULTURE—continued. NAURU AND OCEAN ISLANDS ACCOUNT. Revenue Account foe the Year ended 31st March, 1938. Dr. £ s. d. Gr. Interest on debentures .. .. .. 12,707 510 Annual payment from British Phosphate Com- £ s. d. Administration and management charges .. 558 11 6 mission (in sterling) .. .. .. 35,848 11 2 Audit fee .. .. .. .. .. 500 Exchange on annual payment .. .. .. 8,603 13 1 Balance to Appropriation Account .. .. 31,181 6 11 £44,452 4 3 £44,452 4 3 Appropriation Account for the Year ended 31st March, 1938. £ s. d. £ s. d. Redemption of debentures .. .. .. 39,675 0 0 Balance, Ist April, 1937 .. .. .. 32,867 19 7 Balance, 31st March, 1938 .. .. .. 24,374 6 6 Revenue Account .. .. ~ .. 31,181 6 11 £64,049 6 6 £64,049 6 6 Balance-sheet as at 31st March, 1938. Liabilities. £ s. d. Assets. £ s. d. Capital: Debentures at 3J per cent. .. .. 350,000 0 0 Share (16 per cent.), Nauru and Ocean Islands Interest accrued but not due .. .. .. 2,517 2 5 Phosphate rights (at cost) .. .. .. 565,040 0 0 Reserve Account .. .. .. .. 215,040 0 0 Proportion of annual payment from British Appropriation Account .. .. .. 24,374 6 6 Phosphate Commission, accrued but not due .. 26,886 8 5 Cash — £ s. d. Loans Redemption Account .. 12 6 Deposits Miscellaneous Account .. 318 0 5 0 6 £591,931 8 11 £591,931 8 11 Notes. —(1) New Zealand's share of the profits earned by the Commission has been used for capital developments, but is not included in these accounts; (2) the accounts of the British Phosphate Commission for the year ended 30th June, 1937, are published herewith. L. C. Scott, Accountant. I hereby certify that the Revenue 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, subject to the departmental notes enfaced thereon. —J. H. Fowler, Controller and Auditor-General. THE BRITISH PHOSPHATE COMMISSIONERS. Trading Account for the Year ended 30th June, 1937. Dr. £ Or. £ F.o.b. cost of phosphate, including interest on capital, Phosphate sales and sundry credits, less freight and contribution to a sinking fund for the redemption of insurance, &c. .. .. .. .. .. 916,690 capital, and other charges in accordance with Article 11 of the agreement of the 2nd July, 1919 .. .. 910,673 Balance .. .. .. .. .. .. 6,017 £916,690 £916,690 £ £ Balance carried forward .. .. .. .. 11,015 Balance brought forward at Ist July, 1936 .. .. 4,998 Balance for year ended 30th June, 1937 .. .. 6,017 £11,015 £11,015 Balance-sheet as at 30th June, 1937. Liabilities. £ Assets. £ United Kingdom Government .. .. .. 1,339,100 Nauru and Ocean Island phosphate rights, buildings, Commonwealth Government .. .. .. 1,339,100 and plant, ships, investments and deposits, less New Zealand Government .. .. .. 510,133 reserves for depreciation and other charges in accordance with Article 11 of the agreement of 3,188,333 the 2nd Ju1y,1919 .. .. .. .. 3,229,804 Sinking fund for redemption of capital .. .. 343,167 Sundry debtors and phosphate on consignment .. 434,539 Sundry creditors and outstandings .. .. 464,553 Voyages in progress .. .. .. .. 7,460 Government Appropriation Account .. .. 25,000 Phosphate and goods in transit .. .. .. 126,602 Trading Account balance .. .. .. 11,015 Stocks at Nauru, Ocean Island, and elsewhere .. 182,901 Cash at banks and in hand .. .. .. 50,762 £4,032,068 £4,032,068 We have examined the foregoing Balance-sheet with the books and vouchers of the British Phosphate Commissioners and the audited accounts from London. We have accepted the certificates of officers of the Commissioners for the valuation of the stocks. We have obtained all the information and explanations we have required. In our opinion the Balance-sheet is properly drawn up so as to exhibit a true and correct view of the state of the Commissioners' affairs according to the best of our information and the explanations given to us and as shown by the books of the Commissioners. Kent, Brierley, and Sully, Chartered Accountants (Aust.), Auditors.

7