The Democratic advocate., 1909-12-10
L1rS BOOKS AUDITED
|corv7s HAVE Been CORRECTLY
KEPT
.,op,tiOns for a system Of Keeping
Accounts

The Mayor dnu COnitt -
lnS Monday night and transacted the
wv mO' work OF receiving the report
aun' un street commissioner and pass
'lo and paying current bills. The
n,attpr Cl interest was the re-
sl of eth the Baltimore Auditing Com
'N' 'p.Irlmorc. Mu., Nov. II, 1909.
=" Honor.Ole Mayor and City
SanvcI uv CT ..c ,iuJ Oh Westminster,
Nd.
r9nahIe to cur request and in
.@gIous, we nave completed an
at'l IL of tbe books of the City of West
ias aYisr ,or q period extending from
~ w.. "a 1901. 10 October 81, 1909, and
to submit herewith schedules
'nIng tle results of our audit as
IoD "R9Iance sheet as of November
I,4. .-ocLeuule Of fixed prop
.4os. C-Schedule Of personal prop
Gss, D., npaid taxes on 1906 levy;
JTpll taxes on 1907 levy; F.
,,srI d. .es On 1898 levy; G-Unpaid
yas on 1909 levy; Decentralization
hank account OF treasurer and OF
rEing fund; I-Bonded Indebted
as. BILLS payable and loans; X
Sruea interest on bills payable and
Il he,,gl indebtedness; L-Unpa1d
on ps. Treasurer statement
rpcpiDts and disbursements (con-
snspd lor period of May 20, 1907, to
r,r IS, f9OSJ; N-Same from May IS,
gl 10 May Il, 1909; O-Same from
Sav II. 1863, to October 81, 1909.
Comments on i}MIance Sheet.
Fixed frOperties.--We recommend
i,t your council authorize the plac-
+ Irg of values on the unproductive as
S4s included under this caption, viz :
9yed street, paved sidewalks, and
average system. These are assets
a true sense and should be carried
heir actual cost Of construction,
d nclualng any repairs, and should
aQaed to yearly from your street
EUDerintendent's report for any new
EQua construction Work.
At this late date it would be the
| Eork Of many days to take up this
Rom a standpoint of actual cost;
serefore probably the best method
EOuld be to have competent parties
Ifce an arbitrary value thereon.
Personal rroperties.-These are
We would suggest
Lweyer tat these values should be
Eapreci tee from year to year so that
then the usefulness of each asset has
ElQed It's VI lue on the books would be
Fritten down to a nominal figure.
Taxes, Licenses, etc.-We have veri-
led these assets by the tax levy
books, and find same correct. We at
hch schedules of all overdue ac-
cunts.
Sinking Fund Assets-Verified by
IaHk book and by actual communica-
bon with the depository bank.
Capital iiabilities-We have listed
NndS as paid, have scrutinized can
Elled bonds and have seen that cou-
lODS cancelled were attached to bonds
intact; and have verified payments
t interest coupons at each period
trough our open list and by coupons
Fturned by bank.
Bills Payable. Liability for Bor-
owed Money for Current Expenses
md Use-We have verified payments
II interest for these accounts and
lave attached hereto schedule show
lg
Accrued interest on bills payable
nom date Of last payment Of interest
date OF our audit.
Accrued interest on bonds repre-
eltS the portion ACQUIRING from July
! 1909, to October 81. 1909.
Oyerdrai -Cash-Represents excess
expenditures over receipts and
'aS properly verified as shown by our
chedule II.
Comments.
Your methods of keeping the &C
cunts OF YOUR city in the past have
zen Of very crude nature, in fact in
tead of having a bookkeeping system,
our accounts have been merely a
tcord Of receipts and expenditures
Nth some recapitulations at stated
eriOds.
We find, however, that these ac-
Onts have been kept correctly and IN
u apparently conscientious manner
nC We have no criticism to make OF
ae services rendered your City by its
Ulcers.
We would make the following sug-
eSuons for a system of keeping your
counts.
That you open a general ledger on
dSlS OF balance sheet as exhibited Dy
Ut schedule A That these entries be
laae through Journal. That
vu y, keep your books there
IIer on strictly doubly-en-
y system Of accounts. That at the
SHINING of the year you estimate
OuF receipts and make entry there
.e. aebiting your asset account and
cnsdltlng an account to be known as
u5Aefal Appropriation Account or
any other name you might suggest
aen a'n when you decide to make ap-
55opnstions this account will be debit
- StCNlEl account IO1 SAAO pSNA - =
rtaF appropriation will be credited.
rgl WHEN cash is paid on account
~ tnese appropriations they will be
SSolIed from cash book. At the close
your year OF these accounts will be
i;G9erly ~ closed into revenue account,
m5iuing NJ expenses as between repairs
y \ new work, etc.
u, 10 properly carry on this method II
-. ~ oe necessary that all receipts OF
,sn ,si from whatever source pass
auugh the clerks hands; and he to
PUSH ,,e daily in the bank on the ac-
'TIt n, OF the treasurer.
,oL Ie license records and Tax Levy
IVss NM must of course be continued.
IL HiS changing of method we believe
aa, -. save time in the Office of the
nm, ~ viii give at a glance informa-
- which now requires much time
4 secure, and will enable monthly
ne. rr,ssaces, showing assets, liabilities,
/ lllpus and losses and expenditures OF
natures and amounts unexpired
Tp appropriations.
bo'. bme are sending Mr.. Weaver sheets
h 11iSslng l examples of the books under