The Hawaiian gazette., 1913-03-11

.EKLY.
would involve placing the affairs OF Ma.
CURES Office In the hands Of a custo.
dian. lt was felt last night that the
board Of supervisors would not wait for
such request, hut would take some ac
ton on its own volition.
Board Of Trade Action.
In its report to the senate the hold
over committee states that the investi-
CATION Of the books of the auditor Of
Hawaii was undertaken at the request
Of the audit committee of the Hilo
Board of Trade under date Of October
20, 1912. This committee consisted of
Messrs. Nichols, Filler and Deyo. The
report shows that an effort was made by
the holdover committee to have the
county undertake this investigation,
but that duty was evaded under the
plea that there was no money with
which to pay the expense.
1t was then that the committee took
1t upon itself to arrange for the inves-
tigation which has brought out such
startling disclosures. The report urges
ed over at once to the attorney gem
eral for action. Part two of this re-
I port, says the committee, will be fled
tomorrow. This win contain recommen.
dations, for such legislation as will
guard against a recurrence Of the ap-
parent Wholesale thievery which has
been in progress in the government of
the County of Hawaii.
Report in Detail.
Then follows the report of the Audit
Company of Hawaii. This is signed by
Matt NJ. Graham, as manager. 1t COW
ers thirteen typewritten pages, giving
in detail list of the discrepancies
which show the illegal appropriation
by Mcguire of more than $71, ,000 In
opening, the audit company's report,
or outlining the instructions under
which it worked, says:
System of Bookkeeping.
elm dealing with the matters con
tanned in this report it must be borne in
mind that no attempt was made to
make complete or detailed audit of
the books.
"The system of accounts presently
in use in the office of the county is
briefly as follows:
"Accounts against the county are
nil made out on the official forms known
as demands. After these demands have
been certified as correct by the head
of the department to which they per.
tain they are lodged with the county
clerk. These demands are numbered
consecutively, signed and dated by the
clerk and presented by him at the first
meeting of the board of supervisors
held after they are received. After be
ing passed by the finance committee of
, the board Ito whom they are referred
they are marked as having been passed
for certain sum payable out of Ger.
tain appropriation, dated and signed by
the chairman of the board Of supervi.
sSrs and the county clerk.
"These signed demands are ther
handed TO the auditor. He then issue.
a warrant payable to the individual oil
firm named in the approved demand
These signed demands constitute the
authority of the auditor for issuing
warrants in payment of the same.
"The treasurer pays the warrants is
sued by the auditor with check drawn
on one of his accounts with the FRS
Bank of Hilo, Ltd. There are six ac
!
roads, school, permanent Improvement
reserve and preservation of game, il
the name of Chas, II. Swain, treasure
of the County of Hawaii.
Auditors Books Bad.
"We found the books in this offic
very badly kept and the records un
satisfactory.
-"The general ledger did not balanc
at December 81, 1911, by $6,464.6l
From this it follows that any statemen
made from the books as to the financia
standing of the county at that dat
could not be relied upon
, "The stubs of the warrants, in man,
cases, did not state the number of tn
demand for which the warrants wer
issued, although a space is provided fo
, that purpose,
"We found the books of the audito
in such a condition that it was impOE
: sible for us to arrive at any correc
statement of the finances of the count
without making fuller or more con
plete audit of all the books and rec
ords kept in his office than the time a
our disposal enabled us to make
"The register of warrants issued @
the general fund should contain a lis
of the warrants drawn, the number Q
each warrant, the name of the perso
to whom payable, the appropriation
which ehargeable, and the amount. A
, the amounts are posted direct from tn
r book to the various appropriation az
counts in the ledger, it forms one G
the most important records of the aut
itor. In this book we found footing
p wrong, amounts of warrants entered i
, pencil, and items not posted to tn
; general ledger. Further, we found thf
/ warrants had been issued which ha
not been entered in the register.
"Several of the demands upon whic
a warrants had been issued were not sig
y ed by the chairman of the board {
, supervisors and the county clerk, an
many were not receipted.
Funny Payrolls.
"'The payrols for the various roa
= districts were unsatisfactory. In son
cases several of the names of Il
= payees appeared to have been write
by the same person and in one or tv
A payrolls every signature was filled
= the same handwriting. We went to u
: districts of North HilO and Hamakl
!. for the purpose of paying off the rot
q laborers for the month of January.