Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1912-07-31
Municipal Expert Finds Hawaii
County Finances in Very /.
Chaotic Condition

Il Especial Star Bulletin Correspondence
HILO, July 29.-Lax methods OF all
kinds are revealed in supplementary
report made to the Hilo Board of
Trad By Expert III. Gooding Field, Of
which the substance was published
by wireless in the Star-Bulletin.
Mr. Field declares that the system
OF accounting has been so loose that
ii viii require regular audit that
will keep auditors employed a number
of months to determine where the
county stands financially. His re-
fort says in part:
The county treasurer took Office in
January, 1911, and about that time
consulted WITH the county auditor, and
later with the Chairman of the finance
committee regarding the fact that he
was not advised of the outstanding
warrants, and also that he tthe coun-
ty treasurer1 had no knowledge of the
balances of either the general or spe-
cial appropriation funds kept by the
county auditor, in consequence of
which the country treasurer was un-
able, at any time, to ascertain the fin
ancial status of the county of Hawaii.
This state OF affairs has not since been
remedied.
No ADULTS.
The general and special appropria-
ton accounts kept by the county audi
tor have never been audited, and the
balances as reported to the board OF
supervisors from time to time have
never been verified, although the same
have been accepted as true balances
On March 80, 1912, the balances ap-
pearing in the aforementioned gen.
eral appropriation accounts were re-
scinded without resolution OF the
board OF supervisors and the accounts
referred to were, to all intents and
purposes, closed as of the above date
On January 4th, 1912, statement
OF balances appearing in the auditors
books was handed to the county clerk
and referred, without verification, K
the finance committee. This commit.
| tee reported the same to the board
| of supervisors and necessary defi.
cheney appropriation was passed Ds
them.
Can't Check Warrants.
Under the present accounting sys'
Item. the country treasurer has ne
means of checking the correctness o.
any of the warrants drawn by thu
county auditor, but is compelled te
accent the same upon presentation bl
! the bank or banks for its face value
! and subject to the commences OF tnt
signature of the county auditor on thu
warrant
| System Is Lax.
10 say the least, the present munic
| ipal accounting system OF the count,
Of Hawaii is not constructed on SOUND
principles of public accounting, ant
SO long as such irregularities arr
permitted there is every opportunltl
| for them to ripen into actual abuses
lThe extent of such technical ant
| fundamental errors cannot be ascer
tanned by testing the accuracy OF tn
bulk of the postings by aggregates
which appear in the subsidiary books
and ledgers which are represented II
| the controlling accounts.
Considering, therefore, the fact tina
no audit has been made at any tim'
of either the general or special ap
Il preparation accounts Kept Uy ZIG SUuiA
ty auditor, and in view also OF tn
known differences, however small
which exist between the actual ant
the reported balances of the control
ling accounts, it is impossible to state
with any degree of accuracy whethel
the accounts of the county of Hawai-
fully and fairly disclose the position
Of it's affairs, or in what respect the,
fail to do SO. A mere skimniing Q
the financial affairs of the county vii
not suffice.
Complete Audit Recommended.
1t is recommended that complete
and detailed audit of the county books
from the commencement of count.
government on July 1st, 1905, to date
should be undertaken at once by on