390

AUDITOR’S REPORT.

Audit Office, Christchurch,
Nov. 30, 1865.

Sir,--

I HAVE the honor to forward the Treasurer’s Accounts for the last quarter of the financial year ending 30th June, together with the abstract of same, and Comparative Statement for year as made up by me. I enclose the accounts also for the first quarter of the current year.

Apart from the large and unforeseen expenditure rendered necessary by the discovery of the West Coast Gold Fields, it is satisfactory to observe that the Appropriations authorised by the Council have in very few instances been exceeded. Deducting £3281 7s. 5d. of apparent over-expenditure on Church Building Grant, which is merely a cross entry representing subscriptions received, the over-expenditure on the Ordinary Accounts is only £2653 6s. 4d., an excess considerably less in amount than any hitherto presented. It is to be hoped that the Estimates may be so framed as to lead to the entire disappearance of so an objectionable an item from the accounts.

About one-half of the over-expenditure on the present occasion is under the heads, Gaol, Police, Charitable Aid, and Lunatic Asylum, whilst the larger items in the balance are on account of Timaru Moorings, Printing, and Defences. Of the Unvoted Expenditure the only items requiring notice on my part are, one of £40, a contribution to Kaiapoi Cemetery, and one of £469 4s. 11d., for employment to persons in distress.

In the Department of Land and Works (General Account) the over-expenditure is £5821 18s., but £2640 9s. 7d. of the Vote allowed for Contingencies is unexpended, reducing the actual excess to £3180 10s. 5d., also small in amount as compared with former years. A reference to the Comparative Statement will show the items of which the excess consists, the most important being that for Contract Surveys, amounting to £2063 17s. 8d.

The Railway and Harbour Works Account requires no comment. The Lyttelton and Christchurch Railway works have been pushed on apparently with more vigour than was contemplated, the expenditure during the year having been £64,479 16s., instead of £60,000 provided for in the Votes.

It will be observed that the balance at the credit of the Province on 1st July, 1864, amounting to £51,060 7s. 5d., has been absorbed, and that the amount due on 1st July, 1865, by the Province amounted to £10,658 12s. 5d., which has now been largely increased. But this balance must have been much greater had the whole of the Votes appropriated by the Council been carried out by the Government. Upwards of £25,000 has been kept back from Road Boards alone, and though this has no doubt occasioned considerable inconvenience, and the power vested in the Executive of selecting the Votes to be carried out or withdrawn may in many cases be arbitrarily exercised, I think no doubt can be entertained that—looking to the state of the money market in England during the last year, especially in regard to Colonial and Provincial securities—they have acted wisely in restricting their expenditure to the narrowest limits consistent with efficiency. During the last quarter payments to the Road Boards have been resumed, a sale of debentures having been effected in London.

The payments for the quarter ending 30th September, though partially ordered by Resolutions of the Council, are technically unauthorised, no appropriation having been voted. I have therefore to report the whole of this expenditure to the Council as being without legal warrant, and as requiring their express sanction. The details of one of the largest items of expenditure, viz., £46,205 19s. 11d., in connection with the West Canterbury Gold Fields, have not as yet been received from the Sub-Treasurer there, but are promised without delay. I shall have the honor to forward these as soon as I have properly authenticated their accuracy.

I have the honor to be

Sir,

Your obedient Servant,

Wm. THOMSON,
Provincial Auditor.

To J. OLLIVIER, Esq.,
Speaker of the Provincial Council.