Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-02-04
PUBLIC ACCOUNTS.

IL
Proposed Change III the General System
of Keeping Them.
Mr.. L. 8. Mills has devised plan of keeping
public accounts which he is urging upon the
attention of the legislature. In furtherance of
this matter, Mr.. Mills appeared before the
House committee on public accounts and read
the following paper
GENTLEMEN: In reference to the public &C.
counts, we would respectfully represent as fol-
lows: That there is radical difference in the
opinions of accountants in regard to the general
making up of public accounts derived from
tax collections. Very many of those in official
position favor the methods proposed by the
state examiner, and which, in one form or
another, are in use throughout the State-of
charging to a treasurer such amounts as are
shown by his accounts or reports to have been
received. Thus all amounts can be traced out
and criticised in the account which his own
handwriting or his books or marks in one way
or another indicate that he has received. Those
accounts, however, are believed to be defective,
from the fact that there is no conclusive evil
dence that all Of the actual receipts have been
entered or Marked and there is hardly pos
sible way of finding out by the accounts
whether they are absolutely correct or not.
The State examiner in reference to this
point says ''every neglect to mark the word
paid upon the tax list, works to the treasur-
thus marked, by simple omission to make the
stroke or duplicate all evidence of payment is
destroyed" See examiners report, page 8.
Receipts may be given for every dollar of
cash received or they may not. Duplicates of
all of those given out may possibly get into
the auditors hands and be charged up against
the treasurers or they may not. If the giving
of them out is omitted or if tho duplicate re-
ceipts are not delivered to the auditor they are
not charged up and evidence of payment is
virtually destroyed.
Those duplicate or stub receipts may be con-
veniently used to help to trace out discrepancies
bud as basis for making up accounts they
can be placed on accounts made up in that
way.
Those accounts are not kept 40 that amounts
for collection can be traced from the tax list
to either of the different accounts. They are
not usually kept so as to show at either Of the
settlements what amounts are due the county
or to either of the different funds in uncol-
ltcted taxes.
They do not show at the commencement of a
treasurer's term of office, nor at any time dur
ing the term, what amounts for collection are
placed in his hands. Such amounts are very
seldom taken into consideration in any way in
making settlements with county treasurer,
and books and accounts are not usually kept in
such way as to make it possible to do So
The above is thought to be air representa-
ton of methods of accounts in general use,
with brief mention of leading defects and OBJ
jectionable points. Others, however, could be
mentioned Of equal magnitude which are fully
explained in papers submitted.
A CHANGE OF METHODS PROPOSED.
Another class of accountants, equally COM
petent. are firm in the belief (and With APP
parent good reasons for it), that the tax dupli-
cate, as the foundation or source from which
funds are derived, should be made the basis of
all public accounts emanating from it, and that
they should be kept in such way that amounts
for collection, also amounts received, could be
traced directly from the tax list to each and
every account
That in making up accounts against the
treasurer, he should be charged the entire
amount of tax levied extended on the tax
list for collection. also with amounts received
for disbursement from other sources.
Crediting him with all legitimate payments
and disbursements, and at the close of the year
with uncollected tax, as shown to be at that
time unpaid on the tax list, also with cash on
hand at the date Of settlement. The unpaid
taxes as reported and credited, to be carried
forward in the tax list and in accounts each
year until finally paid stricken off by prop
authority. This would effectually guard
rgainst fictitious returns of amounts due, or if
enormously reported and credited, the facts
would become apparent in time to recover on
the official bond. By this plan every dollar of
amounts for collection Gncluding former de-
of each year-and without reference or regard
to the number or kind of receipts given out by
a treasurer. Cash must be on hand to make
the required balance, or if cash were short, it
would show the amount of deficiency.
Those accounts to be so arranged as to show
at each monthly or quarterly settlement, not
only the cash which ought to be on hand, but
also the amounts then due in uncollected tax,
to each district, to each town, and to each and
every county and State fund.
Plans have been matured for keeping those
accounts, and for doing business in connection
with them. by practical, convenient and cor
rect methods, having points of excellence land
besides those mentioned) which are indis-
pensible to the keeping of public accounts
efficiently and correctly.
full description of plans, forms, and
methods proposed are herewith submitted for
your consideration, with the request that if
you find on inspection of the same that the
use of them would be advantageous, that you
would report in favor of such action by the
legislature would at least admit of their be-
ing brought into general use, by a change of
laws relating to duties of officers, etc., which
could be construed as standing in the way of
its use; and by the enactment of such laws as
and of counties to adopt and use the proposed
system of accounts, if in their Judgment it
would be advantageous to do SO.
We would further say, that if suggestions
made by officials in charge of accounts are
carried into effect, as recommended, it would
virtually prohibit the Of methods SUBJ
mitted-if duplicate receipts under general in
structions are to be charged to a treasurer-it
rules out amounts for collection; both could
not be charged in the same account
1t is thought that if those suggestions are
carried into effect, that they will not only fail
to obviate, or remedy existing defects and ir
regnlarities in accounts, but will stand in the
way of its being done by more efficient and cor.
rect methods.
The real defects in public accounts are not as
much attributable to the loose way of handling
| receipts, which are 81 ven out by treasurer tc
persons paying taxes as to the fact, that ac'
| counts dependent wholly or in part on
them and that there is no possible way of max.
| ing them perfectly reliable under all circum
stances, hence no reliance can be placed on &C
counts made up in that way.
| The proposition to use, or the practice OF
| using receipts, stub or duplicate, as founda-
ton for accounts is absurd, even triplicate re-
ceipts can be evaded, if not as easily, it can b.
done quite as effectually as before. Suppose
John Jones, who is entitled to tax receipt No
| 10, pays his tax, but don't take any receipt
| none is filled out. Then the next man wfc
pays takes No. 10-it is placed in the auditor
! hands and appears in the account in the regular
order of consecutive numbers.
They are thus all accounted for, though the
| amount paid by Jones and others may not have
| been included. If by remarkable condolences
such amounts do not appear in the published
delinquent list, Jones is never called on to pay
again, and the matter rests there. 1t is wrong
nSr1I1 ~ h.,
risk of loss, even by inadvertant neglect to
make entries, or to give out receipts. It places
public funds at the discretion of interested
parties, who could put the same amount of
money into their own pockets if such receipts
! were suppressed or omitted There does not
aDpear to he anv puape or limit tn amnuufa