The Democratic advocate., 1909-12-10
CITl'S bOOKS AUDITED
ACCOUNTS HAVE BEEN CORRECTLY
KEPT
Suggestions for a system Of Keeping
Accounts

ing and paying current bills The
chief matter of interest was the re-
port OF the Baltimore Auditing Com
pany, which is as follows
Baltimore, Md, Nov. II, 1909.
To the Honorable Mayor and City
Council ot the city OF Westminster,
Md.
Gentlemen:
Agreeable to our request and in
strucuons, we have completed an
audit Of the books of the City OF West
minister Tor period extending from
May 20, 1907, to October 81, 1909, and
beg to submit herewith schedules
showing the results of our audit as
follows.
A-Balance sheet as Of November
l, 1905; h--Scheduie OF fixed prop
critics; C-Schedule of personal prop
critics, D-Unpaid taxes on 1906 levy;
E-Unpaid taxes on 1907 levy; F.
UNPAID luXes on 1898 levy; G-Unpaid
taxes on 1909 levy; H---heconciiiation
OF bank account OF treasurer and OF
sinking fund Bonded indebted
ness; bills payable and loans K
Accrued interest on bills payable and
on bonded Indebtedness; Unpaid
licenses; M-Treasurer,s statement
OF receipts and disbursements (con-
densed for period OF May 20. 1907, to
May rs. i90S) N--Same from May is.
1908, to May II, 1903; O--Same from
May II, 1909, to October 81, 1909.
Comments on Rhiance Sheet.
Fixed roperties. We recommend
that your council authorize the plac-
ing Of values on the unproductiye as
sets included under this caption. viz
Paved street, paved sidewalks. and
sewerage system. These are assets
in true sense and should be carried
at their actual cost OF construction,
not inImalng any repairs, and should
be adued TO yearly from your street
superintendents report for any new
ecluai construction WORK.
At this late GATE 1t would be the
work Of many days 10 take up this
from STANDPOINT Of actual cost.
therefore probably the best method
would be TO have competent parties
place IN sraitrary value thereon.
Per aonal roperties.--1bese are
felt-eXplan, tory. We would s~saggeRt
however tLlt these values should be
deprecated lrCm year 10 year so that
when the usefulness Of each asset has
enaed It's Y. lue on the books would be
written down to nominal figure.
Taxes, LiCenses. etc.-We have vert
fled these assets by the tax levy
books, and find same correct We at
tach schedules of all overdue ac-
counts.
Sinking Fund Assets--Yeriiied by
bank book and by actual communica-
tion with the depository bank.
Capital Liabilities-W have listed
bonds as paid, have scrutinlzed can
celled bonds and have seen that cou-
pons cancelled were attached to bonds
intact, and have verified payments
of interest coupons at each period
through our open list and by coupons
returned by bank.
Bills Payable Liability for Bor-
rowed Money for Current Expenses
and Use-We have verified payments
of interest for these accounts and
have attached hereto schedule show
ing,
Accrued interest on bills payable
from date of last payment of interest
to date Of our audit.
Accrued interest on bonds repre-
sents the portion ACQUIRING from July
/, lJUJ, 10 OClODef 81, lSU3.
Overdraft-Cash-R excess
of expenditures over receipts and
was properly verified as shown by our
schedule II.
Comments.
Your methods of keeping the ae-
counts of your city In the past have
been of very crude nature, in fact In
stead Of having bookkeeping system,
your accounts have been merely
record of receipts and expenditures
with some recapitulations at stated
periods.
We find, however. that these ac-
counts have been kept correctly and in
an apparently conscientious manner:
and we have no criticism to make OF
the services rendered your City by it's
officers.
We would make the following sug-
gestions for a system of keeping your
accounts.
That you open general ledger on
basis of balance sheet as exhibited by
our schedule A. That these entries be
made through a Journal That
you keep your books there
after on strictly doubly-en-
try system OF accounts. That at the
beginning of the year you estimate
your receipts and make entry there
fore, debiting your asset account and
crediting an account to be known as
General Appropriation Account or
by any other name you might suggest
Then when you decide to make APP
preparations this account will be debit
ed and special account for the partic-
ular appropriation will be credited.
Then when cash Is paid on account
|.aAa these appropriations they will be
ed from cash book. At the close
|ur year of these accounts will be
erly closed into revenue account,
Ing expenses as between repairs
hew work, etc.
properly carry on this method II
be necessary that all receipts of
from whatever source pass
gh the clerks hands; and he to
pit daily in the bank ON the ac-
Of the treasurer.
e license records and Tax Levy
must of course be continued.
his changing of method we believe
save time In the Office Of the
k, will give at a glance informa-
which now requires much time
ecure, and will enablerom0
noes, showing assets,o liabiiities1
hts and losses and expenditlib6sto
natures and amounts unaxpiredT
appropriations. a; ss b aHV
We are sending Mr. Weaver sheets
owfflQ axamDlea of the boOks undBr.f