BALANCE SHEET, SIX MONTHS ENDED 30TH JUNE

Unauthorised Expenditure for which future provision is required, £3578 8s. 8d., appears as an asset in compliance with a form received from the Colonial Secretary’s office. The unauthorised expenditure for the six months amounted to £4135 19s. 4d.; but of this sum an indemnity was taken for £558 10s. 8d. at the seventh session of the Council in May last.

Immigrants’ Bills, £6000.—This was the amount estimated in June, 1865, as actually recoverable on this account. The whole amount got in in 1865 and 1866, on account of immigrants’ passages, has been £136 8s. 8d.

Loans to Town Board, £20,173 8s., might be written off as unavailable.

Amount of Unfunded Debt, Loans by Banks, Outstanding Accounts, with Interest to date, £331,608 17s. 10d., after deducting all payments to 30th June, as explained by memorandum attached, No. 1; but to this amount there remains to be added interest on overdraft at the Bank of Otago from 3rd February to 31st December, 1865; and on that at the Bank of New South Wales from 1st January to 31st December 1865,—the rates being as yet unadjusted.

Amount due to General Government, with Interest to date, £45,611 7s. 5d., is a very close approximation to the true debt. The Colonial Sub-Treasurer has from time to time made advances under instructions from the General Government, of which the Provincial Treasurer has not been cognisant, and at present the salaries of the Waste Lands and Survey departments are being paid by the Sub-Treasurer without reference to the Superintendent. Some advances again were made to the Superintendent, which were afterwards passed through the books in the Provincial Treasury, but not through those of the Sub-Treasurer. It has therefore been impossible to keep a perfect account in the Treasury of transactions with the General Government, and the balance as above is stated from data nearly altogether obtained from the books of the Sub-Treasurer.

The statement of receipts and expenditure for the last six months appear to me so clear and self-explanatory as to call for no remark.

The first item on the balance sheet, £6986 19s. 3d., is the amount of the unauthorised expenditure for the whole year, for which provision will have to be made during the present session [see remark on corresponding item, June accounts]. Under the operation of the Provincial Audit Act of 1866, it may be remarked, the unauthorised expenditure for the future in any one year can never exceed in amount the one-twentieth part of the preceding year’s revenue.

Credit balance at Bank of Otago, with interest, £1240.—Balance of a separate account opened with Bank of Otago for deposit of refunds of contractors. On settlement of the Bank’s claim under the Debt Acts this has been released.

Amount of Unfunded Debts, Loans by Banks, &c., with interest to date, £282,314 12s. 8d., after deducting all payments to 31st December, 1866, and adding overdraft at Bank of New Zealand, as explained by memorandum attached, No. 2 [see remarks on corresponding item in June accounts].

Stripping the accounts of all mere technicalities, it may be stated that the actual receipts for the year amounted to £21,086 5s. 11d.; the actual expenditure, £28,514 10s. 6d.; the unauthorised expenditure, £7545 9s. 11d.; and taking into account such assets only as are available, the total debt of the Province at 31st December, 1865, exclusive of its proportion of the New Zealand Company’s debt, amounted to £503,655 7s.; at 30th June, 1866, £377,220 5s. 3d.; at 31st December, 1866, £368,837 14s. 2d.; and that the proportion of the debt extinguished during the six months ending 30th June, was £126,435 2s. 9d.; six months ending 30th December, £888 11s. 1d.; during the year 1866, £1,135,317 13s. 10d.

I certify that these accounts are properly stated, that they have been truly and correctly classified; that the whole of the expenditure has been properly vouched, and that that incurred without authority of law has been separately and correctly shown.

By section 7 of the Executive Council Ordinance, 1865, it is provided that the Provincial Treasurer and Accountant shall provide good and satisfactory securities for the proper discharge of their duties. I have addressed his Honor the Superintendent, bringing the subject under his notice, but am not aware if the Treasurer has as yet furnished securities.

The Accountant, I am aware, entered into a bond with sureties, but I have reason