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new Court House; £600 for expenses in McLean’s case, and
£1,762 9s. 3d. for stores &c., sent to the West Coast. The items of
unvoted expenditure will be explained, no doubt, by the Provincial
Secretary. As Auditor, I have only to point out that they are
unsanctioned by vote of the Provincial Council.

Having been engaged on an investigation as to the method of
keeping the accounts in the Public Works Department, it will be my
duty to lay the evidence before the Provincial Council, together with
my report upon the accounts of that department, with as little delay as
possible, and I trust to be able to do this at their sitting on Tuesday
next.

In continuation of my former report, I have now to refer to the
statement of expenditure on Public Works. There are but few items
in the expenditure of this department which, under ordinary circumstances, can call for remark from the Auditor, the details of such
expenditure being properly a subject to be reported on by the
Provincial Engineer, in which case any over expenditure pointed out
by the Auditor would be fully explained. Circumstances have occurred,
however, which seem to require that this account should be specially
noticed on the present occasion.

The first item of over expenditure is on the Engineer’s salary.
This for the past year was merely nominal, consisting of an allowance
of fifty pounds for expenses. At the commencement of the year,
however, the salary for the preceding month remained unpaid, and the
over expenditure is the difference of rate on the old and new votes.

The next important item occurs under ‘Stores;’ £4,000 having
been voted for the Central District, while the expenditure has been
£4,777 18s. 11d. A large portion of this amount was originally ordered
for Timaru, where the vote is not exhausted, but was countermanded by
order of the Executive, and taken into stock in Christchurch. (The
account of the expenditure and distribution of stores at Timaru has not
yet been received, and I have accordingly in that account charged the
Department as having the whole amount on hand.)

On the ‘Buildings’ account there is an excess of expenditure over
vote for Gaol accommodation of £214 2s., to which must be added two
items under “Unvoted Expenditure” of £146 and £19 6s., making in
all under this head an over expenditure of £579 13s. 10d. The
expenditure on Police Barracks includes, in addition to the Barracks in
Christchurch, watch-houses erected at the Heathcote, and at Akaroa,
Kaiapoi, and Rangiora, and shows an excess on the whole of
£1,002 15s. 1d. The excess on the different road votes requires no
comment.

As an investigation into the management of the Public Works
Department, especially with regard to the accuracy of certain returns
laid by it before the Council, seemed to be imperatively demanded, in
consequence of action taken by certain honorable members, I have
during the past week held an inquiry into these in the manner
prescribed under the Audit Act. My attention was particularly
directed:—1st, to the accuracy of a return made by the Assistant
Engineer on the cost of the Gloucester-street bridge; 2nd, to the cost
of the Waimakariri breakwater, and the account against which it had
been charged; 3rd, to the mode of settlement of Contractors’ accounts;
and 4th, to the mode of keeping the accounts of the Department, and
the facilities for committing or detecting frauds. I have the honor, for
the information of the Council, to forward the evidence taken, and to
report that on the first point, viz., the accuracy of the return as to the
Gloucester-street bridge, the return made was incorrect; but that while