Los Angeles herald., 1907-11-14
COUNCIL TELLS AUDITOR TO
GO AHEAD
FAVoRs CORPS OF LICENSE
INSPECTORS
New Books and Records viii Check
Payments, Simplify Demands and
systematic Disbursements,
Mushet Says

' NSstiBdtlOnB OF accounting systems III
eastern cities and also the methods which
he proposes to install in Los Angeles t.
remedy and reform past mistakes.
Under the present charter some lin
ltations must be used for the time being
but under the proposed new charter Mr.
Mushet hopes to see further changes In
stalled.
Briefly, in each department of the cit.
the following features will be installed
the language being that of Audito
Mushet:
First-A record of acquisitions or
orders which will provide a check to
prevent duplicate payment of bills
and show the outstanding liabilities
of the city, for which demands have
not been issued, and also to prevent
departments from suppressing bills
for supplies, etc., with the intention
of having them paid out of subse-
quent appropriations.
To Help clty's Credit
We have found that in many cases
the payment of bills against the city
has been unreasonably delayed to the
hurt of the city's credit.
BY meare of this record we will be
enabled to remedy this defect.
Second-A cash record of receipts
showing their source in columns and
providing for the information of their
remittance to the treasurer; also for
a monthly report of the same to the
auditor for the purpose of checking
with his records.
In this connection it seems advis-
able to call attention to the fact that
all receipts from whatever source they
may be derived belong to the city
and not to the department which
makes the collection. and this fact will
be recognized in the plan of the new
system
Third-A demand register which
will provide for an internal check OF
the correct distribution to the va
rious expenditures. amounts in detail.
This register will be a loose leaf
record book and a carbon duplicate
will be furnished the auditor month
ly for the purpose of comparison and
check.
The auditor viii keep controlling
accounts with each department In his
books. which will enable him to tell
at any time whether the department
books are being correctly kept.
The above plan will condense the
work in the departments and will
facilitate the monthly check of the
department records.
One System of Numbers
All demands are given a depart
nent number. They are given an
other number by the clerk and mayor,
and still another by the auditor.
The new system will contemplate
the number given by the department
being carried right through and in
this way it will be easy to trace a
demand.
Fifth-Ideally, there should be a
city treasurer who receives and dis
burses all city moneys. Unfortunate
ly, however, part of the city funds
are disbursed through the county
(school Department. and part through
a disbursing agent (aqueduct). In this
way it is quite possible for a payment
TO be made by the city treasurer and
also by the county treasurer or the
disbursing agent for the same debt.
This, however. can only be remedied
by n change in the charter or the
state law.
Sixth-Since 1 came into office, con-
siderable improvement has been made
in the matter of purchasing supplies,
but the system is yet far from per-
feet.
Departments complain of delay in
getting their requisitions approved.
In some cases the complaint is well
founded.
BIames Heads
In many cases, however, the depart
ment is itself to blame for lack of
foresight in anticipating its require
ments.
A study of eastern methods leads
me to suggest that inasmuch as the
auditor before passing a demand for
payment should know that the re-
quirements of the ordinance respect
ing competitive bidding have been com
piled with, and that the prices were
the lowest obtainable in this market
he should have an opportunity of ex-
amining the requisitions and bids and
approving the order before the same
becomes effective, or as an alterna-
tive. that the duty of obtaining bids
and issuing orders be placed under
the jurisdiction of the auditor, sub
ject, of course, to the control OF the
supply committee of the council.
SEVENTH find in many of the
eastern cities that licenses are payable
at the city hall, that the city is
therefore under little or no expense
for collection.
Advocates Inspectors
In these cities there are license
inspectors whose duty it is to see
that every one who should pay
license does so.
Where man Is found who has not
taken out license he is notified to
Immediately procure one, and on fail
ure to do so is arrested and fined.
In some cities this inspection is
with the city clerk or with the police
department
I would strongly urge on the ground
of economy and efficiency that some
such provision be at once made in
this city; that competent super
intendent of license inspectors be ap.
pointed and that the district of his
eubordinates be changed every three
months.
| am satisfied that If this plan is
adopted there will be very consider
able saving of expenses to the city
and also very considerable addi-
ton to the revenue.
AS far as possible we are following
the classification of accounts as
adopted by the United States census
bureau, after much thought and con-
sultation with leading economists of
the country Tie main divisions of
the classification are:
General government.
Protection of life and property.
Health conservation and sanitation.
Highways.
Charities and corrections
Education.
Recreation
Miscellaneous.