The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-07-25
REPORT ON BOOKKEEPING
THE SYSTEM EMPLOYED BY THE
SCHOOL BOARD CONDEMNED.
All the Funds Accounted for, but i'm N
Roundabout Way-Deputy Au-
ditor Dunn's Statement.


the new law to examine the books of the
School Board. filed their report with the
mayor yesterday The new system under
which the books of the board are kept is
severely criticised because Of the method
and the newness of the plan, which, they
say, is susceptible to error. From the re-
port the books seem to be very compl-
Gated and the confusion of the words
fund and appropriation" is held re-
sponsible for many alleged mistakes. The
report says:
1.-The school city and the Board of
School Commissioners are to be congrat
ulated on the exact accuracy with which
very faulty system of accounts has
been kept. We follow the several ac-
counts with such comment as to US seems
proper, that the appropriateness of our
suggestions may be manifest. That the
system of accounts now in vogue is faulty
is the result more from the fact of its
being an initiatory one than because of
any defect in principle, and the fault is
easily remedied.
1.-The accounts of the treasurer are very
unsatisfactory. His one account is a re-
ceptacle for every penny that he receives
to the credit of the school city, and every
warrant he pays is charged against such
account 1t is our judgment that the treas
urer's books should keep the moneys in
his hands in the respective funds to which
an appcrtionment under the law assigns
them. This is not done"
1t is shown that according to the board
account June 30, there cash bal
ance of $94.611.95, while the report of the
treasurer shows a difference of 81 800. In
regard to this variance the experts say:
nor axa nina "a
and auditor, in their accounts, have al
lowed $500 which the treasurer does not
include in his balance. Both cannot be
right, and we are of the opinion that the
treasurer should have receipted for the
amount, IL was received by him prior
TO June 30.
SYSTEM CONDEMNED.
Continuing the report says:
I'VE desire most earnestly to condemn
the false balance of the special fund ac-
count. On June 30. 1900 that account shows
balance on hand OF $l2,i43.36. whereas
such balance has been drawn against by
the tuition fund for the sum OF SO 90,
thereby showing a deficit In the special
fund of s3.T79.90, which fact the account
books of the board do not disclose. Such
a method opens the door for error or
wrong. and should not be permitted. The
circumstances discovered on investigation
prove, as per the conditions made patent
by this reference, that the special fund
should show proper deficit, but that the
auditor has refused to issue warrants for
the payment of certain claims allowed by
the board. On April and June %. 1900.
there was transferred from the special
fund to the tuition fund the respective
amounts of s23. 81 and $4,000, total s103,-
1861, and the books properly show such
transactions, making pertinent a question
of why similar transaction was not prop
erly accounted.
The manual training fund shows a bal
ance of $26, 123 81 June go 81. 09426 having
verted to the special fund. The report
goes on TO say that the 'revisions contem-
plated by the act of 1899 should carry all
funds except the tuition and buildings and
grounds funds, or others controlled specifi-
cally. back to the special fund, at the close
of the fiscal year, and that the word APP
preparation really means the entire
amounts remaining in such funds at the
expiration of such year. There is no good
reason aSsignable for carrying back to the
special fund the unexpended balance OF an
amount appropriated TO a fund and at the
same time permit an amount TO the credit
of that fund not covered by a specific APP
preparation. The school year should begin
with a clean slate under our construction
of the intent of the law with all proper
funds (not only appropriations covered
back into the special funds. This amount
reverted to the special fund should have
been $27. 217.59.'
In the library fund there was a balance
of $13, 1874 s1.75S.03 having reverted to the
special fund and the experts say the whole
amount should have reverted. According
to the experts the books show a deficit of
SIC. S. in the tuition fund. which, they
say, should not have appeared as fact
upon the books as the money was really
taken from the special fund, although
there is record to show 1t. An appro-
priation in transfer from the special fund
is recommended to make the correction.
The experts offer the following solution for
the adjustment of the special fund:
1.-THE books, now show balance of ST.
443. SO in the special fund: whereas, in point
of fact, that fund is bankrupt. And the
saving of that Notifying fact by the con-
dition of the treasurers accounts is more
good fortune than a practical solution of
| the question of fact that the board must
at some time adjust. We recommend that
Immediately an appropriation be made to
cover the overdraft of the tuition fund,
| that the account books of the board may
be corrected.
BALANCES SHOULD REVERT.
|. The report says that balances in other
funds should have reverted to the special
fund and that all accounts receiving ap-
preparations should be closed each year
and that the treasurer should make month
| ly reports showing disbursements, receipts
| and balances. 1t is also cited that the in
debtedness of the school city is not shown
and no provision in the way of a sinking
| fund is made for the payment of future
indebtedness. The experts criticise the
| payment of $3.50 TO w. T. Marcy out of
I! the buildings and grounds fund for re-
pairing clocks. and say the plan leaves a
way open to grave faults in the future. In
conclusion the report says:
Greater care should be taken in num-
bering aud signing all vouchers. We COM
mend a strict compliance with the section
| of the law relative TO appropriations pre-
ceding allowances, as that method imposes
| the obligation of examining expenditures
| to know what appropriations are neces-
sary.'
W. S. Ryan, one of the experts, says the
report is not a criticism of the auditor and
treasurer. but of the system and its new
ness. He says every penny expended is
accounted for, but the faulty system is re-
sponsible for the apparent discrepancies
DEPUTY DUNN'S STATEMENT.
Mr.. Dunn, when seen, made the follow
1 ing statement:
Il have no criticism to make of the re-
port of the experts. except that they
seem TO have overlooked the fact that the
books of the secretary, the auditor and
| the treasurer are necessarily kept from
| three distinct standponts; that they are
| in error to some Of their statements of
| fact. and that they are mistaken in their
views 90 the law.
THE treasurer's books deal only with
warrants presented and paid. and cash re-
ceived. The secretary's books deal with
| him. The auditors books stand between
| the two. The books of the secretary and
auditor agree except when warrants are
| not issued on vouchers presented 10 the
auditor. and this was the in the last
| six months with three vouchers in favor
| Of the Consumers Gas Trust. aggregating
4 s. 9a5. 90. These are not held up'' in the
ordinary sense of the word. but are con-
tested claims, the hearing on which Is now