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Financial Report. Balance-sheet. The balance-sheet, duly audited by the Controller and Auditor-General, and the Revenue Account appear at the end of this report. The capital expenditure totalled £75,703, of which £29,273 was expended on the Hawke's Bay transmitting station and studios at Napier. The Southland station absorbed £23,405 ; while £11,514 was expended in the purchase of a building at Dunedin, which is to be reconstructed and then used for office and studio purposes. A further £60,000 was invested temporarily for future capital commitments. At the 31st March, 1939, the Commercial Service's indebtedness to this Service was £101,926, which includes advances, interest thereon, and copyright fees. Revenue Account. Expenditure on programmes was £12,900 in excess of the amount expended in the previous year, due, chiefly, to additional stations being in operation. For the same reason the cost of maintenance increased by £3,850. An additional sum of £11,818 was allowed for depreciation of assets. James Shelley, Director of Broadcasting. NATIONAL BROADCASTING SERVICE. Revenue Account for the Year ended 31st March, 1939. Expenditure. Income. Expenditure on programmes, including salaries of £ s. d. £ g. d. £ s. d. programme staff .. .. .. .. 122,426 16 5 License fees .. .. .. 360,961 0 4 Maintenance of plant, including salaries of engi- Less license fees paid in advance 7,826 18 0 neering and operating staffs .. .. 38,307 7 9 —- — General administrative and running expenses, 353,134 2 4 including salaries of administrative and clerical Less refunds of unexpired staffs .. .. .. .. .. 29,964 11 6 portion of radio license fees 314 7 5 Expenditure on N.Z. Listener.. .. .. 861 16 2 352,819 14 11 Subsidies to "B" stations .. .. .. 540 15 11 Interest .. .. .. .. .. 5,830 17 10 Payments to stations operated under contract .. 2,916 10 6 Rents .. .. .. .. .. 948 15 3 Contribution to Public Service Superannuation Fund .. .. .. .. .. 572 14 6 Contribution to Radio Research Committee .. 1,518 6 0 Depreciation of assets .. .. .. 46,584 19 2 Balance transferred to Accumulated Fund .. 115,905 10 1 £359,599 8 0 £359,599 8 0 Balance-sheet as at 31st March, 1939. Liabilities. Assets. £ s. d. I. Accumulated Fund— £ s. d. £ s. d. I. Land and buildings .. .. .. 170,151 8 2 Balance as at Ist April, 11. Machinery and plant .. .. .. 95,909 4 6 1938 .. .. 441,616 16 2 111. Office and studio equipment .. .. 18,589 4 1 Transfer from Revenue IV. Newsprint stocks .. .. .. 11,525 10 6 Account .. .. 115,905 10 1 £ s. d. TT . . ... _ ' ~~ ~ ® V. "B" station purchases .. 21,664 2 8 11. License fees paid m advance .. 7,826 18 0 Less depreciation .. 11,664 2 8 111. Sundry creditors- 10 000 Q Q Departmental .. .. 885 3 1 , TT ... . Other.. .. .. 4,756 8 1 VL Works m progress .. .. 4,446 14 7 5,641 11 2 VII. Sundry debtors and preIV. Writings off Reserve .. .. .. 28 18 0 . payments— Post and Telegraph Department (license fees) .. .. 1,702 12 1 Other .. .. 66 13 9 1,769 5 10 VIII. Temporary Investment .. 135,000 0 0 Accrued interest thereon 891 15 7 135,891 15 7 IX. National Commercial Broadcasting Service (advances, interest, and copyright fees) .. .. 101,926 7 2 X. Cash in bank —■ Broadcasting Account 20,777 16 5 Broadcasting Imprest Account .. .. 3 8 7 20,781 5 0 XI. Writings off Suspense .. .. 28 18 0 £571,019 13 5 £571,019 13 5 James Shelley, Director of Broadcasting. 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.—J. 11. Fowler, Controller and Auditor-General.

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