The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1906-06-21
ENCOURAGE
EMBEZZLEMENTS
CONTINUED from page oneA

I'm view of the plain requirement Of the
Audit Act for the auditor to establish
a true and satisfactory system of book
keeping for each department or bureau
fthe government This requirement
had not been met as to these funds of
public trust character Was there
any failure of audit on the part of the
auditor? Was he lacking i'm the meet
ing of responsibility in this one par
ticular? Every inquiry received care
full and candid answer by the auditor
wherein it became clerly manifest that
he fully recognized the obligations and
responsibilities of his Office and en-
deavors faithfully to meet them. And
yet, so far as concerns the providing
"a system of bookkeeping for the care
of estate and other trust funds, he
held some uncertainty and doubt whe-
Their it could properly come within his
province this doubt being due to the
fact that the said funds were not sub
ject to the usual or customary govern
mental direction but rather under the
immediate supervision and order of the
courts. We believe that these
funds should be audited and therefore
suggest that if the present provisions
of the Audit Act are not Sufficiently
broad as to require of the auditor and
impose upon him the duty Of auditing
accounts of trust funds subject to Ju
dietary control, that a recommendation
be made to the next Legislature that it
be so amended as to make its provi-
sions applicable to this character of
funds.
while the foregoing findings are
true as especially applicable to the Ju-
dietary Department the examination
of the deputy auditor, as to the methods
of audit and report, was not so salts
factory From his testimony, ELECTED
by inquiry, it appears as follows:
First, that a prevalent fault, now
INDUCED in by the government employ
es and therefore public accountants, is
to secure unto themselves personal adj
vances from money subject to their
control and substituting in lieu thereof
| personal l. o. US That in auditing ac-
counts containing such /. O. US the
deputy auditor has felt himself author
| lied to assume the responsibility of
| either on the one hand, considering it
as a shortage and reporting it as such
! to his superior, or, on the other hand,
! i'm consideration of the financial res
possibility and, or, monthly salary of
! the accountant whose accounts are I'M
| der audit to consider and accept the I.
| O. US as cash
! "And Secondly; that in certain cases
government employees have been per
/ mitted to make up cash deficiencies and
without further comment continue in
their positions of public service and
! trust.
I'm view of this information this
! Grand jury expresses surprise and
strong disapproval of the methods in
! vogue. l. o. Us for advanced salary
are the advance agents in the long
| line of entertainments that have dis
graced various departments of the gov
eminent during the past few years And
upon his own testimony the deputy au-
! ditor has taken upon himself a grave
responsibility in exercising a discretion
sanctioned neither by law nor custom
in the auditing of accounts. We can
not too strongly condemn such prac-
| tice, and it seems to US advisable for
the auditor at once to make such rules
and regulations as viii permit of no
| discretion whatever to the deputy au-
ditor or any assistant in his depart
ment, and that shortages or !. o. Us
if any exist i'm the accounts of any
government employee, be Immediately
reported to the auditor so that that Of
fetal may take such action as the facts
| warrant"
Regarding health conditions, the jury
says that it has found President Pink
ham of the Board of Health fully
alive" to the situation and that he
and all the members of the board are
"keenly alert" The jury thinks that
the legislature should give increased
financial support to the board.
The Waianae scandal is realt with
briefly. After telling of the supervi-
sors reference of the matter to the
jury the report says.
1--WE were able to show them that
under the County Act the Board had
ample power and jurisdiction to pro.
coed without such assistance from the
Grand jury and in view of the findings
of their own Investigations it became, il
our judgment their manifest and i'm.
peratiYe duty so to proceed. The board
however rendered valuable public SER
vice by bringing the situation to the
notice of the Grand jury, as it led t.
the finding of true bills IN two cases.
As to get-rich-quick concerns the jury
says that they operate here easily Will
detriment to all investors, and that the
Legislature should pass additional laws
to protect the community from them.
In discussing gambling the jury says
it gave the subject much attention but
without arriving at indictments" and
it gives the police a mild roast for not
showing more activity. The charge OF
the court and the investigation by the
jury ought to check gamblers, say the
jurors, and then they add;
But in view of the reputed preva-
lence of raffling We thought that JUS
tce would be the better subseryed by
simply reporting thereon, one raf'
/ IL, IN rnhtinf