Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-08-20
METHODS OF AUDIT
They Have Been Examined by
a Treasury Committee.
A REPORT Is MADE
BUT SECRETARY SHAW HAS NOT
YET CONSIDERED IT.
Radical Reorganization is Being Look
ed Into-Proposition to Place Audi
tors Under Controller.

The Treasury Department committee ap-
pointed by Secretary Shaw four or five
months ago to investigate and carefully
consider the various methods of auditing
employed in the department have submitted
their report to Secretary Shaw, who has
not, because of his absence from the city,
had time to go over the paper. The COM
mittee went into the auditing systems of
the different auditors, investigated every
feature about which there could be question
as to whether it was the proper method.
and reached numerous conclusions which
are submitted to Secretary Shaw for such
action as he may see fit to take.
Recommendations for changes in existing
methods are in many instances made, and
1t Is practically certain that some of these
changes will be ordered. Wherever the gov
ernment's interests may be made safer
from loss than now the Secretary of the
Treasury will probably order changes. The
committee was not appointed to investigate
charges against treasury employees. as was
reported for some time, and has had no
business under consideration except that OF
looking fully into the systems employed in
the offices of the auditors, and reporting
whether the systems can be improved. The
committee spent number of weeks in the
offices of the various auditors. The result
Of the work of a number of months is the
recommendation for some important
changes in existing ways of doing business
In some branches of the treasury. 1t is the
general belief that Secretary Shaw will go
over the report and adopt many of the
recommended tons by ordering their being
put into effect.
Radical Reorganization Considered.
independent of Secretary Shaw's own in
vestigation there is serious talk among
congressman of passing legislation that will
radically reorganize the methods of audit
ing the accounts Of government expendi-
lures in all departments. Many congress
men declare that a reform in this direction
is imperatively needed One Of the proposed
plans for a reorganization is to bring all
the auditors together in one large building
and place them under the direct control
of the controller of the treasury instead of
being subject to the supervision OF the Sec
rotary of the Treasury. as now. One idea
suggested is that a building ought to be
erected north of the treasury, across Penn
sylvania avenue. on the lot on which it is
intended to build new Department of JUS
tice If Congress can cease haggling over
where 1t shall put new buildings and what
will be Its policy. The new building would
be connected with the treasury by a tun-
mel under PENNSYLVANIA avenue.
The auditors of the treasury are now
scattered over the city. The auditor for
the Post Office Department while receiv-
ing his pay from and nominally reporting
to the Secretary of the Treasury, is in the
that of other auditors. is immense. The
auditor for the War Department is located
IN the Winder building, near the War De-
partment The other four auditors are To-
Gated in the treasury building.
Present Power Of Auditors,
The assertion is made by many officials
that the six auditors of the treasury prac-
tcally dictate the immense expenditures of
the government each year, as they have
great power in the settlement of accounts
and In passing upon claims. While the con-
troller of the treasury has the final say in
matters Of this kind he does not handle
any accounts, except those that reach him
on appeal, or accounts which Of his own
motion he cares to take up. The proposed
reorganization looks to the separation of
auditors from administrative work and to
the handling of accounts purely from a
strictly professional and expert point of
view. Separated from the Treasury De-
partment, where there would be no interest
in the necessity or reasons for expenditures,
auditors, it is pointed out, would look upon
accounts without color.