B.—l [PT. IV], SUP. TO 1941.

STATE FORESTS ACCOUNT. Balance-sheet as at 31st March, 1941. Liabilities. £ £ I Assets. £ Capital Account .. .. .. .. 36,311,035 Land .. .. .. .. .. 1,516,080 Loans— Standing forests .. .. .. .. 34,028,190 Debentures and stock issued— Amount of Forest improvements, roads, tracks, protection Bate of Loan. improvements, &c. .. .. .. .. 7,323 Percent £ Departmental property —Indigenous forests : Buildli .. .. .. 300,000 ings, equipment, motor-vehicles, reference library, ]i .. 145,000 stores, &c. .. .. .. .. .. 13,422 3 .. .. .. 992,852 Sundry debtors— £ 3i _ _ . _ 638,795 Departmental debtors .. .. 1,239 •ja 116'100 Sundry debtors .. .. .. 116,157 4 991,211 ' 117,396 3,183,958 Plantations .. .. .. .. .. 5,958,651 Advance from Consolidated Fund at Stocks of tree-seeds .. .. .. .. 2,351 4 per cent. .. .. -. 87,405 Regeneration areas .. .. .. .. 45,402 — 3,271,363 Managed forests .. .. .. .. 63,704 Sundry creditors Utilization, sawmilling, and creosoting plant .. 332,474 Consolidated Fund for— Amounts held on deposit .. .. .. 3,669 Loans redeemed on conversion .. 145,034 Assets in Suspense .. .. .. .. 1,416 Interest paid .. .. •• 654,914 Administration expenses unallocated .. .. 17,002 Interest accrued !! .! . . 24,584 Charcoal Account .. .. .. .. 5,604 National Endowment Revenue .. 24,443 Net interest payable, capitalized as from Ist April, 1940 91,296 Working Railways Account .. 1,151 Cash in Public Account .. .. .. .. 40,012 On open accountsDepartmental creditors .. .. 3,680 Sundry creditors .. .. .. 24, 833 878,639 Reserves, general .. .. •• •• 1,777,970 Liability for amounts held on deposit .. .. 3,669 Reserve for assets written off .. • ■ 1,416 £42,244,592 £42,244,592

Note.—(l) Lands and standing forests other than areas purchased have been valued as follows: Prairie value, ss. per acre; protection', £1 per acre ; merchantable forests, £10 per acre ; accretions during the year have been brought into the accounts at the prairie value of ss. per acre. (2) Plantations have been valued at cost plus compound interest to 31st March, 1940, less returns compounded to 31st March, 1940. (3) The liability for advances from the Consolidated Fund is fixed by section 21 of the Finance Act, 1926, and section 3of the Finance Act, 1926,' and section 3of the Finance Act, 1927, at £104,250. £87,405 3s. 4d. only is shown as a liability of this account, £16,844 16a. Bd. representing the expenditure on sand-dune reclamation, having been transferred without statutory authority to the Crown I.ands Account. Alex. R. Entetcan, Director of Forestry. W. J. C. Kinloch, A.R.A.N.Z., Accountant.

I hereby certify that the Working Accounts, Profit and Loss Account, Income and Expenditure 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 and to the explanatory notes dealing with departmental accounts generally as appearing at commencement of parliamentary return 8.-l [Pt. IV].— Cyril G. Collins, Controller and Auditor-General.

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