compared with those granted-continued.

CAUSES OF VARIATION BETWEEN EXPENDITURE AND GRANT.

M.M. Navy claims. Deficit 42,7051. 1s. 8d.-A special subhead opened with Treasury sanction to record payments to the Admiralty which, in the absence of detailed information, it is not possible to include under their relevant subheads. See correspondence, page 92,

LOSSES BY FIRE, INCIDENTs of the SerVICE, &C.

Owing to shipwreck, stores relating to this Vote, valued at 8,000l., were lost in transit from North Russia.

A gale in Germany caused damage to the value of 5,8161. to machines, &c., at Bickendorf, relating to this Vote. Hangars and buildings, the property of the Allied Powers, were also damaged.

SERVICES RENDERED WITHOUT REPAYMENT.

Surplus and obsolete stores (nominal value 30,1507.) were handed over to the Admiralty for experimental purposes (Treasury S.17801).

compared with those granted, &c.-continued.

CAUSES OF VARIATION BETWEEN EXPENDITURE AND GRANT.

A.-Staff. Surplus, 15,7341. 14s. 4d.-Due to reductions in numbers of staff.

B.-1. New Works, &c.

B.-2. War Contracts

Grant.

Expenditure. |
£ s. d.
1.50 1.55
1,501,550 1,240,044 11 3

Surplus, 261,5051. 8s. 9d.-The execution of many services was postponed or cancelled on account of the need for economy and of changes of policy. For details of expenditure see Paper No. 6, pages 46-51.

370,000 194,373 2 8 Surplus, 175,626l. 17s. 4d.—An overestimate due principally to lack of information as to Air Ministry liability for contributions towards repair of public roads. Other war contract liabilities were also overestimated.

£1,871,550 1,434,417 13 11

Insufficiently Vouched Expenditure.-This subhead includes 1,7271. 10s. 5d., the vouchers for which were lost in transit from the Army Command Paymaster in Egypt to the Army Local Auditor. They had previously been inspected by the latter, who had returned them to the Command Paymaster on a question of procedure for adjustment with the R.A.F.

C.-Minor New Works. Deficit, 20,971. 15s. 1d.-Excess expenditure was incurred on services carried out by the War Office in Iraq. (Treasury S.18418.)

D.—Ordinary Repairs, &c. Surplus, 88,8601. 6s. 6d.—Wherever possible, expenditure on maintenance services was curtailed with a view to effecting savings.

For details of expen

E. Grants in Aid. Surplus, 1,146l. —s. 4d.—A provisional estimate only.
diture, see Paper No. 6, page 54.
F.-Lands and Buildings. Surplus, 46,1721. 15s. 5d.-Owing to protracted negotiations it was
not possible to complete certain purchases of land. For details of expenditure, see Paper
No. 7, pages 56 and 57.
G.-Rents, Compensations, &c. Surplus, 11,7711. 13s. 6d.-Rental charges were less owing to
the settlement of compensation claims and the disposal of stations proceeding more rapidly
than expected.
H.-Air Ministry Estates. Surplus, 6,2371. 2s..-Expenditure on upkeep of estates was re-
stricted as far as possible, and certain airship stations were disposed of during the year.
J.-Telephones and Telegraphs. Surplus, 5,8501. 11s. 9d.—Provision was made for a claim from

the Post Office which did not materialize.

K.----Miscellaneous Works. Surplus, 3,2811. 13s. 1d.—Substantial savings effected on experimental works services and office expenses were in part set off by increased expenditure on surveys of aerodromes and on miscellaneous charges (2,4007.).

NOTES-Indelible Expenditure.-The accounts for the previous year included under this subhead the sum of 316/. 10s. 4d., which should have been recorded against Vote 3, Subhead F-Electrical Stores.

Gifts. Fittings (value 9847.) were presented to the Government of South Africa to complete the hangars included in the gift of aeronautical material reported in the Appropriation Account, 1919-20. (Treasury S.9334.)

M.-Machine Tools. Surplus, 51,2081. 7s. 5d.-Proposals for the purchase of additional locomotives for home stations and of machine tools abroad were drastically revised on account of the need for economy.