118

Of this amount, £3883 14s. 7d., released sinking fund of the Emigration Loan, 1856, was received through the branch of the Bank of New Zealand, London, where it had been paid by the trustees to the credit of the County Council of Westland; and £1099 16s. 3d. was received from the Provincial Government of Canterbury, and consists also of portion of released sinking funds of the Emigration Loan, 1856, and the Railway Loan, 1860. These amounts had originally been paid over to the credit of the Provincial Government of Canterbury by the trustees of the funds in London on the 7th July and 6th August, 1870, respectively, and previous to the last distribution, which took place on the 23rd March, 1871. They have since been paid to the County Council of Westland by His Honor the Superintendent of Canterbury, together with five per cent. interest from the date of transfer in London, and after adjusting an account for the maintenance of lunatics sent to that Province from Westland.

The balance of the sinking funds of the Canterbury loans (lately to be realized) still due to the County, is estimated to be £9000, or thereabouts; but until a complete statement of the account has been received from the trustees in London, it will be impossible to arrive at the actual amount. A large amount of information, however, can be obtained from the correspondence in re Sinking Funds in the County Chairman’s office.

With regard to the expenditure shown in the account during the half-year, I beg to report that the provisions of “The County of Westland Act Amendment Act, 1869,” have been duly carried out. None of the votes have been exceeded, and the vouchers generally correctly classified. Yet, perhaps I may suggest that in future (as clause 5 of “The Amendment Act, 1869,” is very stringent in its provisions, and distinct as to the expenditure of the County funds, also of the amount and purpose for which the same is to be expended) that no liability whatever be incurred without a requisition for the same having been first obtained from the County Chairman, and the authority under which the same is incurred noted in the Treasurer’s office.

There is one subject in connection with the expenditure that I feel it my duty to allude to in this report, as the circumstances connected therewith are irregular, and that is that an account has been opened at the Bank of New Zealand, called the “County Chairman’s Advance Account.” On reading the preamble, and clauses 5, 6, and 9, of “The County of Westland Act Amendment Act, 1869,” it will be observed that no moneys shall be paid out of any other account than “The County of Westland Account,” and that account shall be operated on only by the County Chairman, County Treasurer, and County Auditor; and that, if at any time the current income is insufficient to provide the sums that may have been authorised to be expended, it shall be lawful for the County Council to borrow from the bank, and the mode in which the money is to be borrowed is distinctly laid down. Now, the proper course has not been adopted in the matter to which I allude. It appears that at the close of the last session of the County Council a resolution was passed indemnifying the County Chairman from any expenses incurred in connection with the visit of His Excellency the Governor. A portion of these expenses have been paid through the legal channel, viz., out of the County of Westland Account, the remainder have been paid out of the account called “The County Chairman’s Advance Account,” and amount to £355 2s. 10d. The resolution of the County Council indemnified the Chairman so far as the expenditure was concerned, but it was incomplete, as it did not place at his disposal either vote or amount from or under which the payments could be made in accordance with the provisions of “The Westland Act Amendment Act, 1869.”

Owing to the creditors pressing their claims, the Chairman had no alternative but to defray them in the most expedient manner left him. In doing this, it would have been a more desirable course had the account been opened in his own name as a private account, and not as County Chairman. I have alluded to this transaction for the purpose of pointing out to the Council that, owing to a resolution which authorises the expenditure of money, the provisions of “The County of Westland Act Amendment Act, 1869,” have been in a manner overlooked, and a precedent established, which is, in my opinion, contrary to the intention of that Act, which is especially framed to prevent any expenditure or loan without the previous resolution of the Council authorising the specific expenditure.

I have the honour to be, Sir,

Your most obedient servant,

EDWARD PATTEN,
County Auditor.