279 
MAJORITY REPORT. 
transactions under the Health Insurance Act. In saying this 
we must not be taken as implying that delay is not a grievous 
fault : but we feel that such delay as exists would be manifested 
under any circumstances. The delay which exists is in giving 
the final certificate, occasioned by the fact that certain figures 
which must appear in the accounts can only be arrived at retro- 
spectively, as in the determination of the sum available for 
administration which depends on a mean count of the member- 
ship. But delay in giving the final certificate need not, and does 
not involve a corresponding delay in scrutinising the transactions 
of Societies. It does not, therefore, operate to encourage, as 
was suggested, the possibility of undetected fraud. 
676. Nor are we satisfied that the system is an unduly 
expensive one. A comparison was instituted which was 
designed to show that on the scale of fees approved 
by the Treasury for similar work in the case of Friendly 
Societies, the work of the Audit Department could be done ai 
approximately one-eighth of its present cost (Reid, Q. 20,364). 
But this comparison is vitiated by overlooking the fact 
that the Treasury Scale is not merely apportioned to 
expenditure but provides for a minimum fee of £3 no 
matter how small the unit. In considering the Health 
Insurance Scheme where, especially in Branch Societies, there 
is a large number of very small units, it is obvious that this fact 
is highly relevant in making any comparison, and indeed when 
allowance is made for the effect of the varying provisions of the 
Treasury scale, the comparison is by no means unfavourable to 
the Audit Department on the ground of expense (Middleton, 
GQ. 23,220), 
(QUALIFICATIONS OF OFFICIAL AUDITORS 
677. To one other point, that of the professional qualification 
of the Audit Staff, a brief reference may be permissible. It is 
almost unnecessary to disclaim the suggestion that the existence 
of the Audit Department is attributable to the fact that the 
accounting system under the Insurance Act is so intricate that 
no ordinary professional accountant could understand it 
(App. LXXIX, 2). Intricacy of accounts is obviously a reason 
for entrusting the work of audit to men of high professional skill, 
and we consider it important that the staff of the Audit Depart- 
ment should comprise as large a proportion as practicable of men 
with professional qualifications. When the Audit Department 
was established, a considerable number of those recruited were 
men with professional qualifications, and at present, as we are 
informed, the staff contains 38 Chartered Accountants and 
61 Incorporated Accountants (Middleton, Q. 23,223-23,224). At 
present, however, men with professional training or experience 
are not being recruited. These men receive ‘‘ an intensive 
training. Tt is not as broad as the professional qualification. It