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20th October, 1950. The Hon. the Minister for Maori Affairs, Wellington. Sir, — We report that we have completed the audit of the Accounts of the East Coast Maori Trust lands for the year ended 30th June, 1950, and attach a set of the 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 the mortgagees —namely, the State Advances Corporation—that they are holding certain documents as security for advances. The solicitors to the Trust and the Bank of New South Wales, Gisborne, 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. During the year a revaluation of the whole of the property of the Trust was completed, and this is reflected in the amount shown as freehold lands. This amount is £588,359 15s. 2d. for the current year, compared with £393,914 6s. 9d. in the accounts for the year ended 30th June, 1949. The actual Government valuations amounted to £575,337, but these have been increased by £13,172 15s. 2d., representing improvements effected during the year and reduced by £l5O for the sale of a cottage on Kopua Station, Maraetaha Id Block. A corresponding increase is shown in the individual freehold accounts of the various blocks. Plant and Furniture.—The plant and furniture has been revalued, and the difference between the new valuation and the amount standing in the accounts at the 30th June, 1949, has been written off as depreciation and shown as such in the respective station accounts of the Trust. Live-stoch on Stations.—We have accepted the numbers and values of live-stock on stations as at 30th June, 1950, as certified by the Farm-managers and Mr. G. Newlands, the Farm Supervisor. In connection with the " Papuni Station Sudsidiary (Ngapakira Farm)," the livestock on hand at the 30th June, 1950, has been valued at a price exceeding the standard values obtaining in the Trust, as stock was purchased just prior to the end of the year and not disposed of until early in the current financial year. Distributions.—We have verified all payments made to beneficiaries during the year ended 30th June, 1950. The following amounts have been credited to the Distribution Accounts during the year under review : £ s. d. Paremata 64, No. 2 Account .. .. .. 793 6 8 Maraetaha 2, Sections 3 and 6 .. .. .. 4,698 0 0 Pakowhai Block Account .. .. .. 374 0 0 Mangapoike A .. .. .. .. .. 5,208 10 6 Mangapoike 2b .. .. .. .. .. 1,200 0 0 Mangapoike 2d .. .. .. .. .. 904 11 8 Mangapoike 2e .. .. .. .. .. 460 0 0 Tahora 2c 1, Section 3 .. .. .. .. 1,222 110 Tahora 2f 2 .. .. .. .. 2,800 6 6 Whaitiri No. 2 .. .. .. .. .. 213 0 0 f £17,873 17 2 In addition to the above allocation for distributions, the sum of £7,037 10s. 9d. has been expended on donations and charged to the various blocks concerned.

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