( ^ii ) 
EEPOET OF THE AUDITORS 
ox THE REL VTIONS OF LIFE COMPOSITIONS TO EE VENUE. 
AVe have, as requesteJ, carefully considered tbe question of the manner 
in which the Life Compositions received from Members in future are to be 
treated in the Society's accounts, and also the contributions to the revenue 
of each future year which should he made in respect of the Life Compositions 
received in the past. 
2. Annual Contribution to Revenue by Life Coynpounders. — After examin- 
ing and discussing several alternative plans, we are unanimously of opinion 
that the simplest, best, and fairest method will be to credit all Life Compo- 
sitions received in and after 1890 to the Reserve Fund, and to debit that 
Fund each year with the cost of providing the Life Members then on the 
books with their privileges. 
3. Net Cost pel- Member. — On the average of the last seven years (includ- 
ing 1890), the net cost of providing Members with their privileges (exclud- 
ing all contingencies and the shows) was 14«. per head. This cost may, in 
view of the change of the Journal from a half-yearly to a quarterly publi- 
cation, probably be larger instead of smaller in the future, but for the 
present it may be taken at 14-s. 
4. Life Members ivho compounded before 1890.- — There were 3,825 Life 
Governors and Life Members on the register on January ], 1890. Their 
privileges for the year at 14.<;. per head would cost 2,677/. 10^. Each future 
year will, of course, diminish by deaths the claims upon the Society of the 
Life Members who compounded before 1890 at the old rate of 10/., and 
■whose compositions were credited to the revenue of the particular years in 
which they happened to be paid. 
5. 'Life Compounders of 1890. — The total amount received for Life Com- 
positions during 1890 was 1,895/. Of those who compounded in 1890, 133 
exercised their privileges for that year, and the income of 1890 must be 
credited with 93/. 2*. (133 x 14s.) on their account. 
6. Life Members by Ecaminntion. — In the above calculations we have 
included the tifty-eight Members who have been granted the Life Men^bership 
as a reward, having won Orst-class certificates at the Annual Senior Ex- 
aminations during the twenty-one years froui 18G9 to 1889. We recommend 
that for the future a sum equal to what these Life Memberships would have 
cost if paid for by the candidates themselves (i.e. 151. each) should be debited 
to the Education Grant, and credited to the Reserve Fund, in order to provide 
funds out of whicli the cost of the privileges of the Education Life Members 
elected after 1889 can be defrayed. Wo have so dealt in the accounts with 
the six Life Memberships conferred in June 1890, as the result of the Senior 
Examination held last May. 
7. Pro.y)ective Claims of Life Members elected before 1890. — It may be 
useful, as giving an idea of the prospective claims upon the Societjr which 
