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23rd September, 1941. Sir,- — 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, 1941, 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 Trust, but have accepted certificates from mortgagees —namely, the District 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 mortgage. Stock.—We have accepted the numbers and values of the live-stock on the stations as at the 30th June, 1941, as certified by the Farm Managers and Mr. H. Symes, the Farms' Supervisor. Distributions - -In cases where payments have been made to Natives during the year under review through the Tairawhiti District Maori Land Board we have accepted the Board's receipts for the moneys paid to them, but have not checked the individual receipts of the Natives concerned. The same procedure has been adopted as in previous years, and the individual receipts of the Natives will be checked by the Government Auditors in 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. Mangapoike A .. .. . . .. . . . . .. 2,604 5 3 Paremata 48 .. .. .. .. .. .. . . 32 22 Tawapata South No. 1 .. .. .. .. .. .. 1,629 7 6 Whaitiri No. J. .. . . . . . . .. . . . . 298 3 8 £4,563 18 7 Mill Suspense Account (£3,326 18s. 9d.J. —This represents the cost of the erection of the timbermill at Mahurangi, and includes roading, buildings, plant, houses, tractor, cutting and hauling of logs, and mill working, less the sawn timber disposed of and on hand at the mill at the 30th June, 1941. Mutton unrealized (Or. £1,136 65.). —The mutton unrealized is deducted in the balance-sheet from the wool and produce unrealized. Account sales had not been received at the 30th June, 1941, for certain consignments of mutton which were on hand at the 30th June, 1939. When the complete account sales come to hand adjustments will be made with this account and the stations concerned. 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., Clark, Menzies, Griffin, and Co., Public Accountants, Auditors. The Hon. the Minister for Native Affairs, Wellington C. 1.

Approximate Cost of Paper.—Preparation, not given; printing (570 copies), £14.

By Authority: E. V. Paul, Government Printer, Wellington. —1941.

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