New-York tribune., 1907-07-09
NEEDLESS TEMPTATION.

A strong temptation offered to weak men in
places of trust is found perhaps, in imperfect
systems of bookkeeping, which make accurate
accounting impossible and deceit easy. The re-
port of the Committee of Accounting and
Statistics, made last Saturday to the Mayor,
probably explains some, at least, of the grating
that is presumably going on with more or less
impunity in the various departments of our
city government. BY actual citation from the
accounts Of several departments the committee
shows that no adequate record is kept of prop
erty owned by the city, that there has been no
accounting for the arrears of taxes and as
sessments which constituted assets of the vari-
GUS municipalities consolidated into greater
New York in 1898, that no direct bookkeeping
control Is exercised over store and stock yard
entries and that & result of these and many
other similar imperfectiOns, regular auditing Is
absolutely impossible. Not the least dlsquieting
statement made by the committee Is this:
The lack Of controlling accounts over expenses
OF departments has caused the city to operate on
false basis. Many millions OF dollars of the
proceeds of bond issues have been used to meet
the current expenses of the city which should
have been included and covered into the annual
tax. levies for meeting current expenses. And
many millions of dollars Of the bonded debt Of
the city are represented by such expenditures for
which no property or thing OF value remains the
proceeds having been used for current salaries
and wages and for current supplies which have
disappeared without this fact coming TO public
attention. It is only fair to state, however that
this unfortunate result Is in part due to specific
statutory enactment.
Aside from the injury thus done to the city's
credit, there is an tnvitation to peculatiou and
general perversiOn of public funds and property.
Bad bookkeeping cannot be defended 80 easily
as administrative blunders Of other sorts may
be on the plea that human judgment Is frall
and the city government complicated. The facts
adduced by the committee plainly show that,
in some departments at least bookkeepers must
have been chosen according to their skill in
causing the largest number OF entries to be of
least service to auditors. Thus, IN the accounts
Of Bellevue Hospital:
Orders copied three times invoices ara
copied IN toto twice; they are initialled fifteen
tmes-flve times on each of three copies; they
are stamped six ttnes-twiCe on each of three
copies: they are numbered six times-twice on
each OF three copies; the of the contractors
IN each invoice Is written in the books ten times
the date on each invoice appears in the books
sixteen times; the amount OF each invoice is
written ten times; tho quantity of goods on each
invoice Is written seven times: the invoices aro
distributed to the same appropriation five times
and the acquisitions are recorded six times.
Perhaps this vast multiplication of records is
done in good faith; but It really makes audit
Ing almost impossible save through q special
commission. Hundreds OF municipal employees
must be aware Of this; and many men who.
under straightforward system OF bookkeeping.
would never be tempted, are perhaps either
yielding or at least listening to the voice OF dis
honor