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

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 s1,s0o.o0o 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 'wrongfullys collected the
new accounting reform saved the taxpay-
ers, on the basis of a IS per cent rebate
commission. the sum of $450.00O 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 a case of a. radical
and wholesale accounting reform. A new
accounting system was provided thruout
| 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 nun
Der of accounting changes which may
herewith be considered. stt.e5sf
Whatever other reforms the city of
Minneapolis may see fit to sinaugurateG In
connection with it's accounting. the open
| ing of the following three accounts IS
| Immediately urgent:
l
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 memorandum of the
amount of he 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
showing the assets and liabilities of the
permanent improvement fund.
''Third-A properly balanced account
showing the assets and2liabilities of the
permanent Improvement revolving fund.
"The city controller now keeps an &C
count showing the annual cash receipts
and disbursements of the two latter funds
named; but a resource and liability &C
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 tc
open these three accounts without fur.
ther 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 u, Of the cit,
charter defining the duty and powers O.
the controller, contains the following
broad definition: 1T shall be the dut!
of the city controller to keep regular
, at all times show the precise financia
, condition Of the CITY,, etc.
AS the financial condition of the cit,
embraces the special assessment system
and the various funds connected there
with. and as it is impossible to show tn,
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
) but authorizes the city controller to kee]
: the above or similar accounts.
I'm order to secure the expert advice
) of the best municipal authorities, first
e as to the advisability and necessity o
:. opening the accounts here proposed, an,
3 second, as to the question whether
l broad general power such as that con
:. ferred on the city controller by the Min
r neapolis city charter gave such officia
!, adequate authority to ope nthe account
suggested, the writer on a recent tri
{ personally consulted with a score of tn
r leading financial officials and expert mu
Q n1clpal accountants of New York, Bos
. ton, Buffalo, Detroit and Chicago. TIL
: unanimous verdict of these authorities
!. without exception, was, first, that sue
I accounts were absolutely necessary t
q preserve the funds involved, and second
o that the broad general power was all tina
: was required and all that an accountan
q conversant with up-to-date methods Q
:. accounting desired.
Z
troller of Minneapolis to open books q
: account appear to be as broad as Lax
: could provide. This provision of tn
city's organic act-It, shall be the dut
of the city controller to keep regula
books of account which shall q
. all times show the precise financial condi
!. ton Of the city-is broad enough to au
thorize the opening of any book of &C
count necessary to show the city5s flnan
cial condition
Il IF the city controller should desire fui
;, Their express authority before opening
! special assessment account, and &C
! counts showing the assets and liabilitie
~ of the funds connected herewith. the cit
council could doubtless provide it by OF
j dinance or resolution under the charte
! 4 provision, chapter X, section IA: The Cit
|, council shall have the management an
;. control of the finances etc.
For the opening of the accounts name
and for carrying them back over perit
of sixteen years to the date of The insta
= lation Of the present special assessnel
system, there will be required the servic
!: of one and probably two accountants 4
= the period Of one year, at a cost to I'll
"a city of possibly $4,000. When complete
O however. the city would have for Il
h first time in the history of the funds III
~ der discussion. proper and reliable has
for the adjustment Of its special asses
le ment finances and a complete reco
III thereof from 1885 to date.
20 1.-THE accountant who takes the col
. tract would doubtless agree to the slip,
lation that the revenue derived from III
collected special assessments brought