B.—l [PT. IV], SUP. TO 1941

SMALL FARMS SCHEME. Revenue Account for the Yeab, ended 31st March, 1941. Dr. Or. £ Interest on capital — £ £ Rents receivable .. .. .. .. .. 4,669 Public Works Fund .. .. .. 71,395 Interest receivable on— £ Consolidated Fund .. .. .. 1,560 Current Account mortgage .. .. 6,946 72,955 Instalment mortgage .. .. .. 12,781 Rent payable .. .. .. .. .. 716 Share-milkers' loans .. . . .. 902 Remissions under Mortgagors and Lessees Miscellaneous advances .. .. .. 2 Rehabilitation Act, 1936 —■ 20,631 Principal .. .. .. .. 1,719 Interest accrued on loan to Napier Harbour Board .. 1,194 Interest .. .. .. .. 3 Interest on development expenditure recouped .. 9,336 1,722 Rebates on superphosphate.. .. .. .. 321 Rebates .. .. .. .. .. 226 Surplus on disposal of properties .. .. .. 832 Travelling-expenses .. .. .. .. 13 Profit on disposal of developed blocks .. .. 11 Accident compensation .. .. .. .. 1,144 Balance: Loss for year carried down ... .. 48,137 Miscellaneous expenses .. .. .. .. 18 Deficit on disposal of properties .. .. .. 205 Losses on realization of advances to small-farm ocoupiers 6,463 Losses on disposal of developed blocks .. ~ 1,669 £85,131 £85,1.31 =*= : £ Balance — £ Interest on development expenditure recouped in respect Loss brought forward from 31st March, 1940 .. 108,730 of previous years .. .. .. .. 16,688 Loss brought down .. .. .. .. 48,137 Balance : Loss to 31st March, 1941 .. .. .. 140,179 £156,867 £156,8C7 Balance-sheet as at 31st March, 1941. Liabilities. I Land — Assets. £ £ Capital— £ £ Leased .. .. .. .. 79,797 Public Works Fund .. .. 2,017,615 Unleased .. .. .. .. 358,034 Consolidated Fund .. .. .. 39,000 Blocks under development — 437,831 Land donated .. .. .. 1,115 Gross capital expenditure on develop2,057,730 ment .. .. .. .. 1,861,827 Subsidies — Expenditure on live-stock, chattels, and Employment Promotion Fund .. 469,260 farm working .. .. .. 245,836 Consolidated Fund .. .. .. 397,076 2,107,663 866,336 Loan to Napier Harbour Board (Ahuriri Loan from Social Security Fund .. .. 3,161 Lagoon) .. .. . ; 29,821 Land set aside for small farms — Add accrued interest .. .. 1,454 Crown Lands Account .. .. 58,259 Advances to small-farm occupiers— 31,275 Education Endowment Account .. 2,547 Current Account £ 60,806 Improvements .. .. 66,898 Rent accrued: Crown Lands Account .. .. 361 Stock and chattels .. 60,194 Creditors — .127,092 Rent .. .. .. .. 565 Instalment mortgages .. .: 277,810 Departmental .. .. .. 1,271 Miscellaneous .. .. .. 2 Miscellaneous .. .. .. 12,408 404,904 14,244 Advances under share-milking agreements .. .. 14,970 Water Supply Account: Maintenance .. .. 838 Realization Account: Properties in courso of realization 6,725 Payments in advance— Debtors— £ Rent .. .. .. .. 144 Rent owing by small-farm-occupiers .. 4,539 Principal— £ Principal—■ £ Instalment mortgages .. 155 Instalment mortgages .. 1,865 Share-milkers'loans .. 123 Share-milkers'loans .. 1,193 278 3,058 Interest — Interest — Instalment mortgages .. 490 Instalment mortgages .. 4,310 Share-milkers' loans .. 24 Share-milkers' loans ~ 163 Current accounts .. 28 Current accounts .. 5,483 542 — 9,956 964 Departmental .. .. .. 4,861 Accrued interest on capital on blocks being developed 128,061 Miscellaneous .. .. ~ 188 Rent Adjustment Account .. .. .. 295 22,602 Writings-off in Suspense .. .. .. .. 6,807 Deposits held by dairy companies .. 776 Capital Reserve: Special assets taken over at book Less Rcservo .. .. .. 194 value .. .. .. .. .. 39,453 582 Treasury Adjustment Account .. .. .. 171,321. Interest Adjustment Account .. .. .. 4,097 Interest unrecouped on development expenditure .. 128,061 Rents unrecouped on leasehold interests on blocks since acquired .. . . .. .. .. 586 Losses in Suspense Account .. .. . 6,807 Subsidies in respect of blocks disposed of— £ Consolidated Fund .. .. .. 14,001 Employment Promotion Fund .. 30,094 44,095 Revenue Account: Balance carried forward .. 140,179 £3,350,377 £3,350,377

Notes. —(a) Profits or losses from farming operations on blocks under development are included in the Revenue Account only when the final position is ascertained on realization of the blocks, (ft) Interest on expenditure on blocks under development has been credited to Revenue Account only to the extent that trading results have enabled it to be met. The balance has been erodited to the Balancesheet item " Accrued interest on capital on blocks being developed, £128,061." R. G. Macmorkon, Under-Secretary for Lands. G. I. Beeson, Chief Accountant. I hereby certify that the Income and Expenditure Account and Balancc-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 and the explanatory notes dealing with departmental accounts generally as appearing at commencement of parliamentary return 13. 1 [Pt. IV]. The following comments are appended: (1) The account does not bear a charge for the cost of expenses incurred by Departments administering the scheme, other than a reduced charge for the supervision of the erection of cottages and milkingsheds ; (2) it is unlikely that the realizable value of certain properties is equal to the development expenditure thereon. —Cyril G, Collins, Controller and Auditor-General,

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