MAJORITY REPORT. 
264 
of its annual income from sources other than public funds and 
payments out of the State funds of Approved Societies. 
665. We suggest that the power conferred by the section on 
Insurance Committees should be withdrawn as they have no 
funds available for this purpose. 
SECTION L.—AUDIT OF ACCOUNTS. 
666. We conclude this Chapter with a reference to the 
arrangements for audit of the accounts of Approved Societies 
and Insurance Committees. Though we deal with this matter 
briefly we do not underrate the great importance of strict and 
continuous supervision of the accounting of the numerous and 
highly diversified bodies which administer the Scheme. The 
question of audit only becomes prominent when misappropriation 
or serious negligence arises. Nevertheless, efficient audit is one 
of the most important elements in the financial structure of a 
Scheme of this character. 
ResurTs oF THE AupIr. 
667. The arrangements for audit, and the results which have 
emerged during the operation of the scheme are fully described 
in the statement which has been submitted to us by the National 
Insurance Audit Department (App. OI). That statement has 
been supplemented by a considerable measure of oral examina- 
tion (Q. 23,209-23,289). 
668. The evidence goes to show that, in spite of the inevitable 
complexity of the accounting system and the lack of professional 
training among the officers of many of the smaller units, the 
accounts are, on the whole, kept in a very satisfactory manner, 
and that a reasonable and increasing compliance with the many 
regulations of the Central Departments is secured. The following 
table from Appendix CI, shows a satisfactory and greatly 
improving state of affairs in the matter of the submission of 
accounts of Societies to the scrutiny of the auditors :— 
Year ended : 
31st December, 1916 
1917 
1918 
1919 
1920 
1921 
1922 
1923 
1924 
a." 
Number 
then 
coming 
under 
andit. 
2,078 
1,842 
1,706 
1,634 
1,567 
1,496 
1,365 
1,264 
1.240 
Societies. 
Number 
of non- 
compliance 
Special 
Reports. 
133 
97 
84 
J 
H3 
fo 
Per 
cent. 
6°40 
5-27 
4-92 
3-92 
3:32 
2:61 
388 
3:64 
9+ ”() 
Number 
then 
coming | 
under 
audit. 
13,455 
11,669 
11,123 
10,754 
9,868 
8,942 
8.463 
8,093 
7914 
Branches, 
Number 
of non- 
compliance 
Special 
Reports. 
568 
493 
546 
454 
377 
377 
343 
175 
994 
5 
Per 
cent. 
4-22 
4-22 
4-91 
4-22 
5-82 
4-22 
4-05 
2-1, 
9+ RY