The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-05-09
Defective Municipal Bookkeeping.

The criticism on Minneapolis public I
bookkeeping and the recommendations for
it's improvement, submitted to the city |
council last night by Mr.. F. N. Stacy, |
officially authorized to investigate the
|cfty's accounts are deserving OF serious
consideration by the aldermen.
Mr.. Stacy shows that, whereas the def
cit in the permanent improvement revolv-
ing fund was assumed by the council to
be $780, 900, it really is about 100000. Mr.:
Stacy attributes this deficit to bad ac-
counting AS the city is about to. issue
$780, 900 of bonds to replenish this fund.
the Importance of a reform in the book
keeping is sufficiently apparent when Mr..
Stacy says that under the present system
there is no. way to insure the replenish-
rnent against depletion. The trouble the
city has had and is having with it's per-
manent Improvement and permanent i'm
provement revolving funds will be con-
tinued SO long as we have a bookkeeping
system that makes it possible for the coun-
ty auditors books to show that in 1902
the actual paving, curb and gutter and
sewer special assessments were $751;, o.,
whereas the revolving fund was charged
on those accounts with $243, 147.69. It is
easy to see that the rotation of a revolv-
; ing fund confronted by such a discrepancy
7 will, to say the least, be eccentric. The
] permanent improvement fund is also in
/ danger, with it's coming addition Of $780,
) 900, because there is no verification of cost
> between the city controllers office and
oit md ole hoc
e the fund is not protected by an asset and
: liability account.
8 Altho Mr.. Stacy is very careful of his
: language in speaking of another defect
: it seems to us that something may BIZ
: Tread between the lines of the report. Ref.
o erence is made to the, statement that after
assessment rolls have been adopted ant
}, confirmed by the city council, and aftel
h the two improvement funds have beer
n charged on the controllers books with the
n amounts approved by the council, change
d both legal and otherwise are made in thes
;, rolls in the offices of the engineer an,
j.; auditor, and as these changes, under tn
- present lack OF accounting, are not re
m corded with the city controller, the reve
,e nues to be paid back into the proper fund
u from special assessments often, If not Gus
ii tomarily bear no relation to the charge
err against these funds on the controller
We books" Mr.. Stacy illustrates thl
or astounding statement by saying that tn
is assessment roll on one inproy ement show
es about 100 descriptions that were raise
of in assessment SO lot after the roll ha
he been confirmed by the council. The COZ
er troller has no record of this alteration
and, Of course, cannot adjust his accoun
n to it.
OF Another grave defect Is that here is l
he system Of accounting with the county
ire which the city knows whether assessment
lot after being levied are collected by t
la county and otherwise accounted for"
ie- In view of these facts, we can see
lon reason why, II nothing else Is done
18th the way of reform, there should not
ern opened the three. new accounts reco,
ID" mended by Mr.. Stacy. These are 81
re- cial assessment account, the necessity
st which is suggested by the simple fact Il
be during the sixteen years of the special {
mt, sessment system there has been no asse!
ment account balance; second, a prope
red balanced account showing the assets a
ag- liabilities of the permanent improvems
lied fund; third, similar account showing
The assets and liabilities Of the permanent
J. it provement revolving fund.
ght
itaI The st. Paul Trades and Labor Asse
- 49,.