B.—i [FT. IV]

SMALL FARMS SCHEME—continued Balance-sheet as at 31st March, 1942 Liabilities Assets Capital— £ £ Land— £ £ Public Works Fund .. .. .. 2,142,503 Leased .. .. .. .. 79,720 Consolidated Fund .. .. .. 39,000 Unleased .. .. .. .. 6,379 Land donated .. .. .. 9,320 Purchase-price of area being developed, 2,190,823 including value of Crown and other land Subsidies— • set aside .. .. .. 424,047 Employment Promotion Fund .. 457,514 510,146 Consolidated Fund .. .. .. 475,568 Blocks under development—■ 933,082 Gross capital expenditure on development 1,881,901 Loan from Social Security Fund .. .. 3,161 Expenditure on live-stock, and farm Land set aside for small farms — working .. .. .. .. 270,987 Crown Lands Account .. .. 60,096 Chattels (including store buildings) .. 65,722 Education Endowment Account .. 2,548 2,218,610 62,644 Loan to Napier Harbour Board (Ahuriri Rent accrued: Crown Lands Account .. .. 288 Lagoon) .. .. .. .. 29,083 Creditors— Add accrued interest .. .. 2,765 Rent .. .. .. .. 179 31,848 Miscellaneous (departmental, &c.) .. 7,285 Water-supply schemes: Headworks .. .. 4,053 7,464 Advances to small farm occupiers— Water Supply Account: Maintenance .. .. 653 Current Account— £ Payments in advance— Improvements .. .. 52,908 Rent .. .. .. .. 152 Stock and chattels .. 55,190 Principal— £ 108,098 Instalment mortgages .. 154 Instalment mortgages .. .. 300,755 Share-milkers' loans .. 150 Miscellaneous .. .. . . 2 Current Account .. .. 1,514 408,855 1,818 Advances under share-milking agreements .. 10,300 Interest— Realization Account: Leased areas in course of Instalment mortgages .. 403 realization .. .. .. .. .. 12,800 Share-milkers' loans .. 21 Losses on blocks disposed of not finalized .. 1,084 Current Account .. 17 Debtors— 441 Rent owing by small farm occupiers .. 3,579 Water levies .. .. .. 21 Principal— £ 2,432 Instalment mortgages .. 1,538 Accrued interest on capital on blocks Share-milkers' loans .. 909 being developed .. .. .. .. 195,685 2,447 Rent Adjustment Account .. .. .. 895 Interest— Writings-off in Suspense .. .. .. 12,968 Instalment mortgages .. 3,395 Capital Reserve: Special assets taken over at Share-milkers' loans .. 154 book value .. .. .. .. 39,453 Current accounts .. .. 4,861 Treasury Adjustment Account .. .. .. 233,414 8,410 Water levies .. .. .. 165 Miscellaneous (departmental, &c.) .. 3,943 ■ 18,544 Deposits held by dairy companies .. 884 Less reserve .. .. .. 220 664 Interest Adjustment Account .. .. .. 4,287 Interest unrecouped on development expenditure .. 195,685 Losses in Suspense Account .. .. .. 12,968 Subsidies in respect of blocks disposed of— Employment Promotion Fund .. 34,421 Consolidated Fund .. .. .. 14,480 48,901 Revenue Account: Balance carried forward .. 204,217 £3,682,962 £3,682,962 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 block, (b) 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 credited to the Balancesheet item " Accrued interest on capital on blocks being developed, £195,685." R. G. Macmorran, Under-Secretary for Lands. G. I. Beeson, Chief Accountant. I hereby certify that the 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 the explanatory notes dealing with departmental accounts generally as appearing at commencement of parliamentary return B. 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 milking-sheds; (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.

4—B. 1 [PT. IV].

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