31 March 1926, compared with the SUM GRANTED, for EFFECTIVE SERVICES.

CAUSES OF VARIATION BETWEEN EXPENDITURE AND GRANT.

A.-Compensation. Surplus, 6,8771. 3s. 10d.-Arrear claims in Palestine were less than anticipated and large claims in Iraq were settled for reduced sums.

NOTE. This subhead includes a sum of 3,365l. 11s. 7d. (additional to payments amounting to 4,4341. 8s. 5d. in 1923) paid as compensation for damage arising out of a forced landing of a R.A.F. aeroplane (P.31252/9); also a payment of Rs.57690 (4,386. 16s. 10d.) to the Iraq Ministry of Anqaf in respect of buildings destroyed by fire in 1923 whilst in use by the military authorities as a motor transport depot. (S.26609). B.-Exchange, &c. Surplus, 8181. 17s.

Note on the accounting procedure.

(a) When the net result of fluctuations in exchange is a loss to Air Votes, the amount of the loss is charged to this subhead. When the net result is a gain, the amount of the gain is credited to Appropriations in Aid, Subhead H, below.

(b) Charges for items other than fluctuations in exchange are made to this subhead irrespective of the outcome of (a).

In the year 1925-26-there was a net gain on exchange and this is credited under Subhead H below. The expenditure under Subhead B represents poundage on postal orders, &c., and bankers' commission.

C.-Medals. Surplus, 911. 5s. 4d.

D.-Telegrams, &c. Surplus, 3,9931. 13s. 6d.-Savings, mainly in Iraq and Palestine, due to increased use of wireless telegraphy and economy in use of telegrams.

DD.-Postage Abroad. Deficit, 6,1891. 12s. 6d.-A special subhead opened with Treasury sanction-see Correspondence, Letters Ncs. 1-2 page 91. This expenditure has previously been recovered from the Post Office.

E.-Meteorological Services. Surplus, 9,8141. 14s 1d.-Unforeseen delays in commencement of certain works services (3,6001.), savings on salaries, &c., owing to new stations not being opened (2,3001.), and an overestimate of requirements for research and miscellaneous

services.

F.-Miscellaneous.

Deficit, 4,2091. 2s. 10d. An underestimate generally; in Iraq mainly due G.-Ministers of Religion. Deficit, 7071. 15s. 10d.-Increased use of the services of officiating clergy.

to payment for fire services to the municipality of Baghdad.

ACCOUNT of the SUM EXPENDED, in the Year ended 31 March 1926,

compared with the SUM GRANTED, for the AIR MINISTRY

CAUSES OF VARIATION BETWEEN Expenditure AND GRANT.

A.-Air Council and Secretary's Dept. Deficit, 10,2861. 14s. 9d.-Higher cost of living bonus for six months of the year (2,5001.), increased rate of colonial allowance to audit staff in Iraq with arrear effect (2,0001.), and unforeseen increases of staff.

A.A.-Civil Pay (Arrears). Deficit, 1,1521. 5s. 6d.-A special subhead to record the arrears, paid to employees under the Air Ministry, in respect of cost of living bonus during service with the forces-see Correspondence in Appropriation Account 1924–25, page 86, letter No. 1.

B.-C.A.S. Dept. Surplus, 11,369l. 16s. 3d.—Underbearing of establishment due to changes in policy and difficulties in recruitment.

G.-Messengers, &c. Deficit, 1,6841. 1s. -d. Higher cost of living bonus and minor increases in staff.

H.-Contingencies. Deficit, 2521. 6s. 8d.

J.-Appropriations in Aid. Deficit, 401. 1s.

Notes. Salary amounting approximately to 8571. is included in the account of another department in respect of an officer temporarily lent to the Air Ministry.

For statement of extra remuneration, see Paper No. 4, page 41.

(24732)

ACCOUNT of the SUM EXPENDED, in the Year ended 31 March
RETIRED PAY, WIDOWS' PENSIONS, AND OTHER

1926, compared with the SUM GRANTED, for REWARDS, HALF-PAY, 1 NON-EFFECTIVE SERVICES.

CAUSES OF VARIATION BETWEEN EXPENDITURE AND GRANT.

A.-Rewards. Surplus, 2061.-The token sum for officer recipients of the Victoria Cross was not called upon. Rewards to airmen were less than expected.

B.-Half-Pay. Surplus, 1,1931. 10s. 5d.—A decrease in the number of officers placed on half-pay as compared with previous years.

E.-Airmen's Pensions, &c. Surplus, 2,135l. 18s. 7d.-Fewer service pensions were granted than provided for.

F.-Widows' Pensions, &c.

anticipated.

G.-Civil Pensions.

Surplus, 2,9121. -s. 7d.-The number of new awards was less than

Surplus, 1,4851. 15s. 8d.

H.-Civil Gratuities. Surplus, 1,6191. 17s. 8d.

The services of certain officers were retained beyond the dates on which they were due for retirement.

J.-Injury Grants. Surplus, 1,5081. 1s. 11d.-No cases arose involving payments to Indians. K.-Commutations. Deficit, 9851. 7s. 4d.-The number and the average amount of pensions commuted by airmen were abnormally high.