B—l [Pt. ll]

The Audit Office has recently inquired from the Departments concerned the authority of law for the State to embark on shipping ventures, but it has not yet been satisfied on the point. Vessels were also chartered by the Union Company to transport general intercolonial cargoes. The Government agreed to guarantee the company against loss on these charters, and has paid £150,000 in part settlement for losses incurred up to March, 1947. Social Security (Medical Benefits) The Audit Office has the assurance of the Health Department that during the year the revision of the patients' lists, which determine the amount of capitation fees payable to medical practitioners providing services, has been maintained. The Audit Office itself carried out test checks at district offices of the Health Department of payments made to patients from the Fund as refunds of amounts paid to medical practitioners, and the position revealed was satisfactory. Polish Children's Camp, Pahiatua Late in 1944, 730 children and 110 adults of Polish nationality arrived in New Zealand and were accommodated in a camp at Pahiatua. Following various overseas financial arrangements, Cabinet decided that as from Ist May, 1946, New Zealand would carry the full responsibility for maintenance, and provision was made in vote, " Internal Affairs." Policy is guided by the Prime Minister's Department, and administration of the camp is by Army personnel with a Polish delegate and staff to assist. Expenditure on maintenance and administration during the financial year 1946-47 was £126,800, with £5,700 outstanding at the end of the year. There is no capital expenditure in these amounts, all such costs having already been met from War Expenses Account. Audit inspections have been carried out at the camp, where receivers' accounts have been inspected, and reference made to camp records to support expenditure made from imprest accounts. Departmental Accounts and Balance-sheets In accordance with the provisions of the Public Revenues Act, 1926, the general public accounts are prepared on a receipts and payments basis. Several special, enactments provide for the preparation of revenue accounts and balance-sheets in connection with certain activities of the State, and section 57 of the Finance Act, 1932, provides for similar accounts and balance-sheets for such Departments as the Minister of Finance may direct. The balance-sheets of the following Departments and bodies audited by the Audit Office are presented to Parliament with the relative annual reports : Canteen Board, Government Insurance, Housing, King George V Memorial Fund, Linen Flax Corporation,

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