Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1906-05-09
The Municipal Accounting Bill.

which Senator G. w. Durham intro Z
luced and secured the passage of
~ the last General Assembly, is one
# the most important pieces of legis-
alton which has been enacted in
Iowa for many a year.
The Grinnell Herald of a recent
late contains the following synopsis
and comments:
Senator g. W. Dunham's bill,
providing for uniform municipal ac-
and auditing, was passed
and becomes effective, July l. 1t
will work a revolution in local affairs
if the Auditor of State realizes the
full significance of the change pre-
scribed and institutes the reforms
SO urgently needed in the methods
Of accounting for and reporting the
financial transactions and conditions
of our cities and towns.
This law makes it the duty Of the
accounting or warrant-issuing officer
of each city or town, auditor or clerk,
as the case may be, to prepare and
publish the annual financial report
now required and he is given author
ity to compel all heads of depart
ments, library, park and school
boards, to file copies Of their annual
reports with him to be included in
the printed report. In cities Of
5000 or over the report must be
printed and bound in pamphlet
form. In cities Of less size coun-
ellis may thus print the report, other
wise it must be printed in official
newspapers. Copies Of all reports,
showing all transactions in detail
must be made out in form and man
ner hereafter to be prescribed, and
forwarded to the Auditor of State.
This official must collate, classify
and total these reports for the entire
state and publish them in volume
for public distribution, including
therein his recommendations for i'm
provements in the methods of ac-
counting.
The most important provisions,
however, are those dealing with the
establishment Of a uniform system
of accounting and examination Of
municipal accounts. The law pro-
vides for .he appointment of a COM
mission Of from fveto seven persons,
familiar with municipal accounting,
who shall assist the Auditor of State
in devising a uniform system of ac-
counts and methods of reporting. Sc
far as practicable the system to be
prescribed shall utilize the defn.
itions, terms and schedules adopted
bv the National Census Bureau
This system. when agreed upon
shall become operative on or aftel
April l, 1907.
| The law also provides for the ap
pointment Of one or more state ex
aminers of municipal accounts
who shall at least once in two years
Examine into, audit and report up
on the financial condition and trans
actions of all CT i es having {
population Of 5000 or over The
examiners are given authority te
summon witnesses, to secure books
and papers and TO administer oaths
They must file a written report o.
their findings aud recommendation
with the Mayor and Council and 6
copy with the State Auditor and sucl
reports must be open to public in
| spection at all times Any city O.
town of less than 5000 may secure
such an examination upon applica
lion to the Auditor Of State by til,
City Council or by any fifty tax
payers
If these provisions are thorough
enforced we err greatly if they do no
work vast Improvements in the book
keeping and business methods o
Iowa's municipalities. The reform
has long been urged by the low
Municipal League and by student
Of local finance but heretofore til
legislature has been adversely in
: clined to it. But our city expen
litures have become so great and S
varied in character, the accountin,
so inadequate and the confusion 8
hopeless that radical change hat
become imperative Under the ne,
; law citizens and taxpayers can read
lily secure clear cut and comprehen
sive reports of the transactions Q
their cities. Further they can com
; pare the expenses Of one city wit
another and under the uniform sys
tenn Of accounting, can feel sure tina
they are comparing like items. On
who has attempted to compare til
cost of city water in Grinnell witt
the cost in other places, can under
stand what a boon that will be t
the Investigator Of municipal az
counts.
Public discussion of city budgets
OF city expenditures, and cit
ventures will be more intelligent b,
cause taxpayers can inform then
selves easily and fully regarding d
tails as we'll as totals and all ca
n know that they are dealing wit
precisely the same consideration
, Needless to say that the new la
will h a " 9 tonic effect on cit
. officials. Subject at any time to a
. examination by state accountal
who is uninauenced by local, bus
ness, political or social bias, loo
!. officials will be keener to obser,
!. the laws respecting the appropriate
4 Of funds and the credit of the
q cities. Furthermore the law wi
II be a great boon to city clerks recei
!, ing only $50 to $3.50 salary who al
, expected to devise and follow moder
methods Of Bookkeeping and tran,
S act as large and varied business fc
, | ,,,h;o1, oo,>,,,oo,a:,l l,,,,,a, .,,.,,lJ -.