The Newtown bee., 1905-11-24
Ten Pages.
LITCHFlELD COUNTY.
BETHLEHEM.
eco 

BETHLEHEM $ FINANCIAL CONDITION.
 REPORT OF FRANK J. RAMETTI, AUDI
 TOR.
 To the Honorable Board of Select men of the Town of Bethlehem: In entering upon an investigation of the towns accounts I have endeavored, by consulting all available sources of in- formation, to ascertain: (D The exact amount of the towns indebtedness. (2) To suggest, if possible, any im- be made in the present methods of keeping the town accounts.
 It appears from an examination Of the TreaSurer'S books from 1858 to the present date, that until the last two or three years payment of interest on out standing interest bearing orders was invariably made by the Treasurer with out any order from the Selectmen; the only check on the TreaSurer's account of interest paid being such examina- tion as was annually made by the audi tors and without the interest bearing orders or copies of them it is difficult to anything more than very superficial one.
 have carefully examined the amounts so paid by the various Treas urers as interest on outstanding inter est bearing orders at the rate per cent. prevailing at the respective times of payment and, in no case, can 1 find that the Treasurer has credited him. self with an improper amount. How ever, such a practice is extremely rep rehensible and unbusinesslike, and the fact that such a practice has lately been discontinued indicates that your town is thoroughly alive to the dangerous possibilities of such prac- tice. In the hands of an interruptions man the power of paying out moneys prise, without the written order of some other official, is fraught with grave danger. Many of the financial troubles of TreaSurerS of towns and cities have arisen from this method of procedure.
 As to the evidences of the Town $ indebtedness issued as security for bOr- rowed money, find that it has, until very recently, been the lcustom of the Town Treasurer, in case current funds were inanf3cient, to endorse Town Or ders issued by the Selectmen of the Town in payment of the ordinary run: ming expenses and when so endorsed these orders become interest bearing; journal m would show an obliga- tion as paid by a Town order, while as matter of fact it was outstanding interest bearing order. A Town order is nothing more or less than check drawn upon the Treasurer of the town in the same manner in which an individual would draw his check upon the bank in which his funds are deposited. If an individual desires to borrow money he does not draw his check upon his bank and issue it to the party from whom he bOrrowS the l money, as a security for the debt; usu- ally he gives his promiSSOry note Speci flying the amount of the debt, the rate of interest and the time when payable. Obviously there is no more reason why a town should issue an order as securi ty for borrowed money than why an in. dividual should issue his check as an evidence of indebtedness.
 In many cases it appears that TOwr orders, issued in payment of the ordin ary running expenses of the town. have been sold and transferred by the orig incl holders to parties who have re 1 tained them and had them endorsed as interest bearing orders by the Treas urer, although the Selectm ems books would contain no record of any loan ol of any interest bearing order. Wher this practice obtained it was clearl, impossible to show the amount of the towns interest bearing debt at any time, either from the Selectmen' books or from the Treasurer's books As the Selectmen of the town are th' agents and executive officers of tn, town, it is clearly their duty and no the duty of the Treasurer to borrov money and to attend to the genera business of the town. The Tow Treasurer is simply custodian 0 funds, receiving them and paying them out only on the Selectmen's or der or whenever specifically authorizet by law, as in case of justice orders ant fox bounties. Allowing the Treasure to so endorse Selectme1's orders ant render them interest bearing is virtu ally giving the Treasurer the power t. borrow money and opens wide the doc for fraud.
 1 find that your Board of Selectmen for the fiscal year ending Septcm be IT, 1904, adopted the plan of givin
 town notes for all borrowed money
 copies of which notes are recorded in
 book used solely for that purpose; thi is by far the greatest improvement
 which has been made in your town accounting system. Since your Honor able Board employed me in the work o examination you have called in all out standing interest bearing orders ant have issued in exchange therefor, tow notes. In this way you have covered every dollar of the towns intereS bearing debt by notes. In this wa, expense account and your borrowed money account are kept entirely separ ate and distinct, as they should be. l is now possible to determine quick, and accurately the amount of tht towns interest bearing debt at an! time and by so doing you have made provision for more careful and ac curate record for the future. thu! placing your towns accounting system alongside that of the more progressive and up-to-date communities of this state.
 As to the manner in which the Sel ectmen'S journal has been kept: This book has in general been kept in very fair shape. The greatest criticism t( be made as to the manner in which this book has been kept is that the en tries in general were not sufficiently detailed. Entries for work done ol materials furnished should show the amount of work done and the quanti ty of materials furnished. For exam pie, an entry for labor on highways should not be simply entered "Johr Jones, Or, by Labor on Highway S6 CO.," but rather should be entered 'John Jones, Or, by Labor on High way, days at $l 30, S6 CO.," If details and items are lacking the record is very incomplete and can only be veri fled by reference to the loose bills kept on file hV the Select men