The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-10-10
STATE TREASURY RYROBBED

ton. the state treasurer and the state
auditor were used.
L found the method of keeping ac-
count of the interest due the state on
bonds purchased for the school fund
was very inadequate and incomplete,
and provided no check on payments
made to the state treasurer, Cor to the
state fiscal agency at New York;; and
in many cases the records were unreli-
able and incorrect.
Il was unable to locate some of the
books and papers, neither were they
produced to me when asked for. In
one instance I found that a consider
able number of pages were missing
from a record book used during a pOr-
ton of the time covered by my investi-
THE incompleteness of these records
necessitated my visiting and examining
the records of city, county, township
and school board officers, in order 10
ascertain right and proper data in re-
lation to the payment of monies, con-
sequently my investigation has neces-
sarily been delayed and prolonged
"One result of this work is to empha-
size the necessity of immediate changes
in the accounting methods now in
vogue in the departments mentioned in
this report, and l would urge you 10
struct me to install such changes as
may be necessary for the better keep
ing of the accounts, whereby more
efficient check can be had and very
ed. 1 would urge that amendments 10
existing laws in relation to accounting
methods be made by the next legisla-
ture as certain changes are absolute
ly essential and necessary to the pro-
per and safe handling of the state ac-
counts and monies These suggested
changes 1 will report to you at later
date.
found out that the bonds of the twelve
12) counties in the hands of the state
treasurer, and held for the benefit OF
the permanent school fund, agree with
the record in the state auditor and
state treasurer's offices.
1.-The present method of handling in
terest coupons is a very lax and un-
satisfactory one, providing absolutely
no check upon the amount due for in
terest on bonds held by the state Cou-
pons can be surrendered without the
state funds being benefited and the
loss would not be detected without
systematic research being made.
This examination has developed
shortages, irregularities and discrep-
ancies amounting to many thousands
of dollars in the twelve (12) coun-
ties examined; nearly, if not all
of which can be recovered for the ben
eft of the state
These shortages, etc, are due to
various reasons, but almost entirely to
money collected for interest due and
not accounted for. Such payments
were made by city, county, township
and school districts in the regular way.
In this connection 1 might say that
since the beginning of this investiga-
ton, and as a result of the same,
amounts aggregating $2,577.50 have
been paid in and credited to the annual
school fund as follows:
"On August 26, 1904, payment of
$1,402.50 to cover interest due July 1,
1908, on $4,000 City of Garden City
bonds dated January 1, 1903. This
payment was made to the State Fiscal
agency in New York by the treasurer
of the city of Garden City on August
book until August 26, 1904.
"On September, 1904, payment
of $1,175-O0 to cover interest due July
1, 1900, on $47, 900 Abilene City bonds;
($12,000 dated January 1, 1898; $685.
600 dated April Is, 1889 This pay
ment was made direct to the state
treasurer, receipt of which was ac-
knowledged July 2, 1900, but not en-
tered on the cash book until Septem-
Der Z, 1904.
I'm my judgment the same condi-
ties investigated will be found in the
remaining counties of the state, not
only in the permanent school fund but
In the normal and agricultural funds.
Il would therefore suggest that a
thorough and complete investigation
be made of all bond and coupon ac-
counts.
Respectfully submitted
(Signed.) CHAS. ROWETT,
state Accountant
Approved: The Edward p Moxey
Audit. Co,
by (sgd.) ]. D. Buckingham.