The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-11-12
AUDITING OF P. 0.
PREVENTS FRAUDS
Officials Deny That the
Government Loses 81, 900
a Day on Money Orders.
System of Accounts Such
That Discrepancies Are
Quickly Detected.

The statement recently printed to the
effect that the system of auditing en-
ployed by the Office of the auditor for
the Postofhce Department, had been re-
kponsible for a long time for the Gov
eminent losing an average Of S1,000 a
day through errcr and fraud is dis
counted about 100 per cent by people
familiar with the workings of the de-
paFtment
In the published criticism the state
ment is made that the Postoffce De-
partment for years has been without
the system OF checks and balances
Known TO every efficient private bust
ness.
The statement is also made that be-
fore steps were taken to correct certain
defects in The system by the special pos
tai commission al present conducting an
inquiry into the business methods OF the
department, il was possible 10 practice
fraud on the money order office
Billions Of Dollars Handled.
This statement is given but little ere
dence in postal circles. It is said that
more than 100000 money orders were
issued during the fiscal year ended June
80 last for which more than $500 OOO. 900
more than SLIPS. 600
IN the conduct Of this vast volume of
business less tnan 90 OF per cent was
lost.
These results are reached. il is de-
clared. BY the uutiring EFFORTS OF clerks
who are generally overworked and under
paid. There are no reforms OF method
imperative" 1t is said. a few more
clerks and better salaries being given
as the greatest needs Of the auditors
office.
In view Of the discussion Of the mat
ter, the methods employed in auditing
postmasters money order accounts, is
OF interest The office of the auditor for
tne PoStOftiCe Department audits both
the issued and paid sides Of postmasters'
money order accounts.
Method Now in Vogue.
The method in vogue, that Of compar-
ing the voucher OF the issuing postmas-
ter against the amount claimed by the
paying postmaster, makes a perfect sys-
TEN of audit. The coupon numerals on
each money order serves as double
check, in that the order cannot be
raised to a sum greater tnan that indi-
Gated in the margin.
First, second, and third class pOstmas-
tCFs render their accounts OF the money
ICStmasters render their statements az
-he end of each month.
Every transaction Of the pUstmasters'
money order statements IS audited with
in thirty days from the tine the state
ments are received by the auditors Of
rce, with the exception Of the issued
eide Of the accounts.
Confidence of Public.
The confidence Of the public in the
money order business conducted by the
Government is such that great num-
hers Of money orders apprOximating sew
eTal millions OF dollars are purchased
and retained by the purchaser for a
year, sucn people using the Government
as 2 saving institution.
As the original voucher Of the issuing
postmaster is eventually checked against
the amount charged by him on his
money order statement after being
checked against the amount claimed for
its payment by the postmaster, Ii natur-
ally follows that any discrepancy ap-
pearing. whether 1t be for 1 cent or 800 !
81 Is invariably detected.