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

ceiptS arising from the installation OF a
new accounting system which cost the
city only ten per cent of this amount.
by no means least of the practical re-
suits Of Chicago's accounting reform, the
city during the first year restored to tax
payers something like 81 800 900 of unlaW-
full and excessive revenue. In thus restor-
ing to citizen taxpayers, without the inter-
mediary of private rebate agencies, the
excess. of revenue 'wrongfully collected the
new accounting reform saved the taxpay-
!ers, on the basis of a Is per cent rebate
commission. the sum Of $45O, ZOO Which
otherwise would have gone into the peck
cts Of tax rebate middle men and been
lost to both city and taxpayers.
Gradual VS.. Wholesale Reform.
Chicago presents case of a radical
and wholesale accounting reform. A new
accounting system was provided turnout
and the accounts were recast and recorded
anew for the period of thirty-two years.
IF Minneapolis has not reached the
point where it is prepared to install a. new
accounting system entire, the alternative
is to provide and carry into effect a. num-
Der of accounting changes which may
herewith be considered. ss"sf'.=sssss's
Whatever other reforms the city of
Minneapolis may see fit to Inaugural In
connection with it's accounting, the open
ing of the following three accounts IS
Immediately urgent:
''First-A special assessment account
properly balanced showing, on the one
hand, the amount levied for special as
,sessments, and. on the other side of the
ledger, respectively, the amount of special
assessments collected, the amount of re-
bated, annulments and cancellations, and
the amount of the delinquent assessments,
the sum of which items together equals
the original amount Of the assessment.
This special assessment account should
be kept both in the aggregate and for
each improvement. No such account Is
now kept by the city Of Minneapolis. The
controllers office at present has no con-
troll whatever over the subject of special
assessments. The only special assessment
records in the controllers office are the
city engineers annual m emorandurn of the
amount of the assessment levy and on the
other hand the tax settlement with the
county auditor. There is no account
opened balancing these items, and no as
sessment account balance has been had
by the city of Minneapolis during the six
teen years of the present special assess
ment system The only important special
assessment record kept is the assessment
roll made out in the city engineers office
and spread on the tax lists in the county
auditors office, and between these two
latter offices no balance of accounts is
attempted.
"Second-A properly balanced account
SuOWlIS, LilS assets anu udUlllLlSS Ol LHS
permanent Improvement fund. y
''Third-A properly balanced account
showing the assets andy liabilities of athe
permanent Improvement revolving fund.
1.-THE city controller now keeps an ac-
| count showing the annual cash receipts
and disbursements of the two latter funds
named; but a resource and liability ac-
count, which is absolutely essential to show
| the conditions of these funds, has never
| been opened. It is chiefly, if not wholly,
| because of this fact, that the books of
| the city controller are unable to account
! for the condition of those two funds and
| for the amount and source OF the short
! age. ,'~
The Controllers Charter Powers.
'The first practical question in connec-
| ton with the above proposed changes is
this: Has the city controller under the
| present charter sufficient legal power to
open these three accounts without fur
| Their legislation on the part of the city
charter commission or of the state legis-
| lature? This question, in my opinion,
may be answered in the affirmative.
Chapter III, section y, of the city
! charter defining the duty and powers Of
the controller, contains the following
broad definition: Tt shall be the duty
books of account which shal
at all times show the precise financia
condition Of the city, etc.
LAS the financial condition Of the city
embraces the special assessment system
and the various funds connected there
with. and as it is impossible to show thu
condition of these funds without keeping
a properly balanced account showing as
{ sets and liabilities, there is no question. II
:. the light Of all modern authorities on n1u
: nicipal and other accounting. that tn
! above charter provision not only permit
J h1,f oif - IT,
: the above or similar accounts.
In order to secure the expert advic
), Eof the best municipal authorities, first
e as to the ACCESSIBILITY and necessity o
: opening the accounts here proposed, an
, second, as to the question. whether
/ broad general power such as that con
: ferred on the city controller by the Min
r neapolis city charter gave such officia
j, adequate authority to ope nthe account
suggested, the writer on a recent tri
f personally consulted with score of tn
r leading financial officials and expert mu
9 nicipal accountants Of New York, Bos
!, ton, Buffalo, Detroit and Chicago TIL
: unanimous verdict of these authorities
!, without exception, was, first, that sue
T accounts were absolutely necessary
a preserve the funds involved, and SECOND
. that the broad general power was all tha
: was required and all that an accountan
! conversant with up-to-date methods {
: accounting desired.
:. 1.-THE charter powers Of the city con
= troller Of Minneapolis to open books {
: account appear to be as broad as la,
: could provide. This provision Of tn
citys organic act-It shall be the dut
of the city controller to keep regula
books Of account ss* which shall q
j. all times show the precise financial cond
q ton Of the city--is broad enough to at
thorize the opening Of any book of az
count necessary to show the city5s flnar
= cial condition.
. 'If the city controller should desire ful
{, Their express authority before opening
:, special assessment account, and al
q counts showing the assets and liabilitit
Il of the funds connected Herewith, the cit
council could doubtless provide it by O.
u dinance or resolution underline chart
provision, chapter *, section II: The eli
!, council shall have the management al
:, control of the finances etc. IS
For the opening of the accounts nam,
and for carrying them back over a. peri,
of sixteen years to the date of the insta
- lation of the present special assessme
~ system, there will be required the servic
of one and probably two accountants
Z the period of one year, at cost to t
- city of possibly $1,000. When complete
q however, the city would have, for t
h first time in the history of the funds u
~ der discussion, a proper and reliable has
for the adjustment of its special asses
1e ment finances and a complete reco
II thereof from 1886 to date.
10 1.-The accountant who takes the co
~ tract would doubtless agree to the slip
lation that the revenue derived from u
&