The Birmingham age-herald., 1911-05-25
MILLION DEFICIT WILL BE SHOWN
 BY END OF YEAR Auditor Submits Complete Report on the City's
 Finances
GOES INTO DETAIL
 ON VARIOUS ITEMS
The Current Deficit Is Shown to Be $5S5, 000-Recommends a Bond Issue of Not Less Than
 $1,500,000

| That a deficit of $1000,000 would be shown in the city finances after deduct | ing all revenue until December 31, 1911, was the statement of J. B. Simpson, spe- cial accountant in his official report made yesterday. He says that the cor rect deficit Is s5s5.o0O, but that the larger sum will accrue by the end of the year.
 The statement of MT. Simpson was filed yesterday before the commissioners. For an hour they pondered over the de- | felt, the exhibits and the charges made in the report of serious derelictions in the public service. No conclusion was reach ed nor would the commissioners com ment upon the statement.
 The charges are made by MT. Simpson that at Ensley a large amount of money and that page or more in the records had been cut out of the book. varying the only available data regarding certain fines said to have been collected at Ensley.
 The report is rather elaborate, going into every detail of the city's finances up to the time the commissioners assumed charge. He remarks in the report that a bond issue is absolutely imperative in or der to get Birmingham on a sound bus- ness basis. MT. Simpson suggests that requested of the people.
 MT. Simpson suggested that Lakeview park be stricken from the books of the city, as he had been informed that the city was not entitled to that property. Digest of Report
 The introduction to the special report, which is a careful digest of the entire document. follows:
 Birmingham, Ala, May 19. 1911. Hon. c. Exum, President Board of Com
 missioners, City of Birmingham, Bir-
 mingham, Ala: Dear Sir: In compliance with your in- structions, given while mayor of Bir- mingham, we have audited the books of the city from May l, 1909, to December 31, 1910. And in accordance with your further instructions of April 10, 1911, given the day the commissioners took charge of the city, to bring the audit down to April | g. 1911, will say that we have performed this duty and attach hereto balance sheet, | cial condition of the city as of April g, | 1911.
 Public Improvement
 Public Improvement Assessments Re- ceivable: This account on the balance sheet shows balance of s943, ,333 O6, sup | ported by exhibit D. In attempting to | reconcile this balance with the various public improvement ordinance registers we found the following differences: The West End register showed unpaid bal ances in excess of the controlling account on the general ledger of s2S,111.O6. We found that the auditor in taking over the unpaid public improvement assessments of West End on January 1, 1910, failed to include s2s,111.06 which were balances due at that time on sanitary Improvements. If there is any reason why this amount should have been omitted from the gen. eral ledger there Is nothing on the rec ords to show 1t. We have made an entry correcting this omission. We found that the council of North Birmingham, before annexation, allowed a rebate of $16,0S7.26 on certain ordinances for public improve ment, which was deducted from these or l OlndnCeS WlleH they were put Ol tHe books of the city of Birmingham. but corresponding entries were not made on the register reducing the assessment or dinances. This correction has since been made. The public improvement regis ters of "old Birmingham" differ from this account on the general ledger, the regis ter showing s23S. 112.26, while the general ledger shows s236, 6,0S7.SO, the difference be- ing $2,01446. In attempting to locate this | difference, we have examined carefully number of ordinances as far back as July, 1907, and found that the individual assessments listed did not agree with the balances as shown by the ordi- nances, which were set up as an asset when the new system of accounting was | installed in July. 1907. It has not been customary to deconcile the balances as shown by these registers with the con- trolling accounts on the general ledger. | Had this been done no differences would | probably have existed at this time. We also find that it has not been customary to balance the individual accounts, as shown by the public improvement regis