TWENTY-FIRST ANNUAL REPORT 99 



purchase of supplies. Without this provision, a deficit could not 

 have been avoided. 



Audit of Accounts. — The usual audit of accounts was ex- 

 tended to include the petty cash accounts of the Director and 

 the Secretary. 



Arrangements were made by which the audi\ors carried on 

 their work at convenient periods throughout the year, both in 

 the privilege account and the Society's funds, permitting the 

 completion of the audit very promptly after the first of the 

 year. The Audit Company's certificate appears elsewhere in the 

 Annual Report, in connection with the Treasurer's statements. 

 New accounts were created during the year for the Gallery of 

 Oil Paintings, Publication fund and Heads and Horns building 

 fund. 



For convenience in bookkeeping, authorization was granted 

 for the carrying of a number of funds in one column in the cash 

 book, under the heading. Special Funds, and a number of trust 

 funds in a column headed. Special Trust Funds. 



The changes made on the first of January, 1916, in the 

 methods of approval and payment of bills have proved very 

 satisfactory. 



Privileges. — We are sorry to have to report a rather unsat- 

 isfactory year in privileges in point of profits. While the result 

 was due to some extent to general business conditions prevailing 

 throughout the year, it was largely due to reduced attendance in 

 the best months of the season from the following causes : Unfav- 

 orable weather in May and June, infantile paralysis in July and 

 August, and trolley strikes in August and September. From 

 July 1, to the end of the season, the attendance of children was 

 almost entirely cut ofl" because of the paralysis epidemic. 



There was a total net decrease in Privilege Department re- 

 ceipts for the year of 4j 4 per cent, as compared with a decreased 

 attendance of IV2 per cent., showing that the gross receipts did 

 not suffer from adverse conditions as greatly as the attendance. 



Although the greatest possible economy was practiced in 

 fixed charges and operating costs, it was impossible to overcome 

 the conditions referred to above. 



Net profits in all privilege accounts increased 5 per cent. 



