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

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Especial Star Bulletin Correspondence
HILO, July 2s-Lax methods of all
kinds are revealed in supplementary
report made to the Hilo Board of
Trade 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
it will require a regular audit that
win keep auditors employed number
of months to determine. where the
county stands financially. His re-
rort 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 1.-THE coun-
ty treasurerl 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
dlICldl oldlQo III luC COunly VI I4oW oil.
This state Of affairs has not since been
remedied.
No Audits.
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 ape
pearing in the under-mentioned gem
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, a statement
Of balances appearing in the auditors
books was handed to the county clerk,
and referred, without verification, to
the finance committee This commit
tee reported the same to the board
Of supervisors and necessary def
cheney appropriation was passed by
them.
Can't Check Warrants.
luUGl Tic RlCoCAAt 0NNOulAtAAAS ~ 2
tenn, the country treasurer has no
means of checking the correctness OF
any of the warrants drawn by tho
county auditor, but is compelled to
accept the same upon presentation by
the bank or banks for its face value
and subject to the commences of the
signature Of the county auditor on the
warrant.
System Is Lax.
To say the least, the present munic-
ipal accounting system of the county
of Hawaii is not constructed on sound
principles of public accounting, and
SO long as such irregularities are
permitted there is every opportunity
for them to ripen into actual abuses.
The extent of such technical and
fundamental errors cannot be ascer-
tanned by testing the accuracy OF the
bulk of the postings by aggregates
which appear in the subsidiary books
and Iedgers which are represented IN.
the controlling accounts.
Considering, therefore, the fact that
no audit has been made at any time
of either the general or special APP
preparation accounts kept by the coun-
ty auditor, and in view also Of the
known differences, however small,
which exist between the actual and.
the reported balances of the control
ling accounts, it is impossible to state,
with any degree of accuracy whether
the accounts of the county of Hawaii
fully and fairly disclose the position
of its affairs, or in what respect they
fail to do so. A mere Swimming Of,
the financial affairs of the county will
not suffice.
Complete Audit Recommended.
1t is recommended that complete
and detailed audit of the county books,
from the commencement of county
government on July 1st, 1905, to date,
sbonld he undertaken at once by one