B—l [PT. ll]

forwarded to addresses where he was able to uplift them and cash them through the Post Office. The Department re-examined its system of recording, investigation, and authorization of benefits and the control, preparation, and issue of postal warrants, and instituted further safeguards with a view to preventing further losses. As has been mentioned on previous occasions, the ordinary safeguards provided by internal checks are applied wherever possible to prevent irregularities, and the Audit Office, in. the course of its duties, examines the accounting systems in operation and suggests improvements where necessary. The instances reported, apart from the Social Security Department loss, did not point to remediable weaknesses in the accounting procedure in the Departments concerned. The number of cases reported to the Audit Office in which the recipients of pensions, sustenance, age, and other benefits obtained payment in excess of scale rates by failing to disclose material particulars of their circumstances to the Social Security Department was 232, as against 116 last year, the relative amounts involved being £5,061 18s. 2d. and £1,946 Is. 9d.

4

Pile No. Nature of Irregularity. Amount involved. Action taken, and Result. Note.— -In cases marked * police inquiries were either unsuccessful or are incomplete. CASES IN WHICH DEPARTMENTAL OFFICERS WERE INVOLVED Cargo Control Committee, Auckland A. 17/94 .. Cash shortage £ s. d. 31 12 6 | No prosecution—shortage made good. * Health Department A. 21/14/33 Fraudulent cashing of salary 8 6 3 Offender convicted and admitted to cheque twelve months' probation. Restitution ordered. National Service Department A. 21/120 .. Misappropriation of moneys .. 16 14 3 j Offender admitted to probation for eighteen months. Restitution made. Navy Department A. 21/28/15 Theft of stores 283 0 0 Eight charges. Offender convicted and sentenced to six months' imprisonment on one charge and convicted and discharged on the - other charges. Goods recovered. A. 21/28/16 Theft of overcoats (56) 350 4 8 Court action proceeding. Post and Telegraph Department A. 21/30/788 Misappropriation of moneys .. 41 5 0 Offenders (4) remanded to Supreme Court for sentence. Restitution made. A. 21/30/788 Misappropriation of moneys .. 76 13 3 Offender convicted and placed on probation for two years. Ordered to pay £5 towards cost of prosecution. Restitution made. A. 21/30/788 Misappropriation of moneys .. 30 3 9 Restitution made. A. 21/30/788 Misappropriation of moneys .. 25 0 0 Officer convicted and placed on probation for two years. Restitution ordered.