The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-07-28
HOW TO KEEP BOOKS
Aldermanic Committees Meet to Di-
gest Reports on City's Ac-
counting System.
Stacy and Dickey at Variance as
to What Should Be
Done.

An important meeting Of the council
committees on accounts of city officers
and ways and means was held this after
noon to canvass the reports OF the &C
countants who have recently been going
over the city's books. To-day's session
was the first of several which may be nee
essary in order to digest the reports of
MesSrS. Stacy and Dickey and put them
In shape for presentation to the council,
together with the joint committees rec
concentrations.
Since the final reports of Messrs- Stacy
and Dickey were made, some comment has
been caused by the fact that the two doc
uments did not agree as to the necessity
for vital change in the city's accounting
system. The former insisted that radical
changes were necessary, while the latter
took the ground that the system could be
made efficient by mere changes Of detail
In regard to Mr.. Dickey's position, Mr.
Stacy said to-day that he accounted for
it from the fact that Mr.. Dickey had been
himself at various times an employee of
the departments which have been under
his investigation, that he was engaged In
the tax rebate business which Mr.. Stacy
proposed system would abolish, and that
he had made the changes In the assess
ment rolls, which were pointed out in the
Stacy report.
Suggestions by Stacy.
At to- days session the joint committee
received from Mr.. Stacy a supplementary
report calling special attention to various
points to which he thought consideration
should be given
The supplementary report first calls at
tention to the view of John F. Calderwood,
former city controller, regarding the sys-
tenn, to the effect that it had done well
enough in 1857 but had been outgrown and
was standing temptation to huge finan-
ITO HI, ,,
system is VIGOROUSLY behind those of De-
troit, Buffalo, Cleveland and other cities Of
like size. ..
Following this Mr.. Stacy cites chapter 3,
section Il Of the city charter which makes
it the duty OF the city controller to keep
regular books of account y which shall
at all times show the precise financial con-
dition of the city,
On this he comments in part as follows:
1.-THE Controller cannot show the pre-
else financial condition of the city unless
he keeps accounts which show the precise
condition of the several city funds, and it
is elemental that this requires for the sew
eral funds an asset and libil1ty account.
Failure to keep such accounts is partly
responsible for the fact that the city con-
troller does not know the condition of the
permanent improvement revolving fund
within several hundred thousand dollars,
and does not pretend to account for the
fact, that in lieu of a fund of over 81, 156,-
900 from the sales of bonds there was an
overdraft January L Of over SIS, 900;
that the controllers books do not show the
condition Of the permanent improvement
fund within several hundred thousand dol
lars; that the controllers book do not
show the condition of the sinking fund
within at least S135, 200, which amount it
owes the revolving fund nor do they show
the resources and liabilities, and thereby
the precise financial condition, of the vari-
Gus other general funds, or of the 80 spe-
cial ward funds; that there is an outstand-
ing asset of perhaps 100000 due the re-
Volving fund from deferred special assess
ment payments and of 100000 to $4,000
due that fund from delinquent taxes tho
there is no account In the controllers Of
flee showing these assets, nor Of similar
assets due other city funds. A proper as
set and liability account for given fund
should charge the county tax collection
levy for that fund and credit the county
with the amount collected carrying the
tax deliquent and unpaid as a charge
against the county and as an asset of the
given fund.-
Mr.. Stacy finally urges along with the
opening of a proper set of accounts a
thcro revision of all accounts for several
years back until the resources and liza
bilities of the various funds and the COR
rected balances are ascertained and
brought down to date and thereby the ex-
act financial condition of the city made
known to the public as required by the
city charter"