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15th September, 1939. We report that we have completed the audit of the accounts of the East Coast Native Trust Lands for the twelve months ended 30th June, 1939, and attach hereto a set of the foregoing accounts. We have the following comments to make Freehold Property.—We have not inspected the title deeds relative to the properties of the lrust, but have accepted certificates 'from the Public Trustee and the State Advances Corporation that they are holding certain documents as security for advances. The Solicitors to the Trust have certified that they are holding on behalf of the East Coast Commissioner the documents relating to the properties of the Trust which are not subject to mortgages. Stock.—We have accepted the numbers and values of the live-stock on the stations as at 30th June, 1939, as certified by the Farm Managers and Mr. H. Symes, the Farms Supervisor. . Distributions—ln cases where payments have been made to Natives during the year under review through tle Tairawhiti District Maori Land Board we have accepted the Board's receipts for the moneys paid, to them, but lave not checked the individual receipts of the Natives concerned. The same procedure has been adopted as in previous years, and the individual receipts of Natives will be checked by the Government Auditors m the course of their audit of the Tairawhiti District Maori Land Board. The following distributions have been made during the year under review £ s. d. Tawapata South No. 1 . . ■ • ■ • • • J® 9 Mangaheia 2d and 2e . . • • • ■ • • 742 15 3 MangapoikeA. .. . • •• •• •• 2 '604 5 3 Mangapoike 2e .. .. • • ■ • • • ' Paremata No. 48 .. .. • • • • ■ • 0 0 Paramata No. 64 (No. 2 Account) .. . • • • 793 6 8 Tahora 2c 3, Section 2 .. . ■ ■ • .. 3, 940 1 5 £9,160 2 4 Bad Debts Reserve—Authority has been obtained from the Native Land Court for the writing back of interest allowed on credit balances up to the 30th June, 1933, and such interest has been cr^ d our opinion all entries passed through this account for the years ended 30th June, 1934, 1935, 1936, 1937, 193 i, and 1939, should also be authorized. The position of this account at the 30th June, 1939, was as follows r • £ s. d. Balance, 30th June, 1938 .. .. •• •• 27,845 2 3 Interest year ended 30th June, 1939 . . • • 3,463 7 ■> Balance, 30th June, 1939 .. •• £31,308 9 8 The above total of £31,308 9s. Bd. has been transferred to the Principal Security Account. Principal Security Account.—This account at 30th June, 1938, was m debit to the extent of £33,236 19s. lcl. Alter allowing for the transfer of £31,308 9s. Bd. referred to under the heading of Bad Debts Reserve, there remained a debit balance of £1,928 9s. sd. This balance has been transferred to the Mangaotane Station Account. Principal Security Freehold Account.—The principal Security Freehold Account which amounted to £32,530 at 30th June, 1938, has been transferred to the following freehold accounts Te Kuri and Tangotete .. . •• 8,885 0 0 Pakowhai .. •• •• •• •• 9 > 0 0 Whataupoko . . . ■ • • • ■ • • "*> Mangatu No. 5 and 6 .. .. •• •• 13,800 £32,530 0 0 Timber-mill Suspense (£0,461 12s. 9d.).— This represents the balance in connection with the erection of the mill at Mahurangi and includes the cost of roading, buildings, plant, Manager s house, the cutting and hauling of logs, and mill working, less the sawn timber disposed of and on hand at the mill at the 30th June, J 939 - Wool unrealized (£9,507 10s. 3d.).— The wool unrealized at the 30th June, 1939, as disclosed by the Station accounts amounts to £13,505. The difference of £3,997 9s. 9d. is represented by advances against wool shipped. Meat unrealized (£5,789 15s. 5d.) .—The meat unrealized as shown in the Balance-sheet is £5,789 15s. sd. Details of this amount are as follows : — £ s d Value of mutton unrealized as per station accounts .. .. •• 5,228115 i» Add killing charges, &c. 7,240 10 1 Less estimated proceeds of pelts and slipe wool .. .. ■■ ■■ 1,450 14 8 £5,789 15 5 Subject to the foregoing remarks, we certify that to the best of our knowledge and belief the accounts signed by us are correct. ... , „ We have, &c., Clarke, Menzies, Griffin, and Co., Public Accountants, Auditors. The Right Hon. the Minister for Native Affairs, Wellington, C. 1.

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