Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-11
Changes in Accounting Sys.
TENS Urged to Safeguard
Public Funds
MAGUIRE SCANDAL LENDS
POINT TO SUGGESTIONS
Impartial Recommendations
Made Calling for Establish
rnent of Examining Bureau
Unless Auditors Appointed by
Governor

Coming on the heels of the diselo-
sures made Saturday with the intro
duction by the senate hold-over COM
mittee Of its reports of the Hilo finan-
cial conditions, with the confession of
Charles Mcguire. auditor of the coun-
ty. the same committee introduced a
supplementary report in the senate
this morning, designated as part two.
This report was drafted by the
Audit Company of Hawaii, which was
employed to investigate the books of
the county of Hawaii, and contains
numerous criticisms of the auditing
method in force at Hilo, and also
points out better and more accurate
methods for the several departments
to follow in conducting their official
Senator Judd introduced the report
on behalf of the "hold-over commit
tee,'s and on motion of Senator Writ
1t was approved and ordered printed.
This will probably be the senate's last
official act In connection with the
HiIo scandal. as the matter has now
passed from its hands and into the
care of the attorney general.
The report was approved without
comment, the clerk being merely ask
ed to read the accompanying note,
which stated that the committee OF
tho ways and means, appointed by the
senate 6f 1911, had ready for submis-
sion the second part OF the statement
Of the Audit Company OF Hawaii
Important Changes Urged.
Important changes in county ad-
ministratian are called for and rec
commended IN the report. Aside from
the criticisms and suggestions as to
concentrating the handling of funds
in the treasurer's Office and restrict
ing the auditors office purely to the
functions Of examining and passing
upon statistics and accounts, the most
emphatic and far-reaching recommen-
dation relates TO the general policy of
auditing in the territory of Hawaii.
The Audit Company strongly urges
either that the governor appoint the
various county auditors or that there
be created separated auditing or ac-
counting bureau. having no connection
as a department with the territorial
auditors office. and that its function
OS W pass upOA OOlu OOuHly anu lOl :
ritorial accounts.
The report In full is as follows:
The report submitted by the Audit
Company to the hold-over committee
Of senators and by them submitted to
the senate this morning is as follows:
PART H..
From the first part of our report ii
is obvious that changes are necessary
in the methods of administering the
finances of the county in order &c
safeguard its funds in future,
The system in force in the offices Of
the county is as detailed in the first
part of our report.
II will readily be seen that if the
practice hitherto followed is according
TO law, that is, there is no duty on
he part of the treasurer TO satisfy
himself that the warrants presented to
him are lin favor of persons entitled
thereto in payment of claims and de
mands chargeable against the county
which have been legally examined. al
lowed, and ordered paid by the board
of supervisors" then there Is no means
OF controlling the power of the auditor
10 issue warrants
Section so, Act 80, Session Laws
1905, provides:
"The Auditor shall, between the
first and tenth day of each month, ex-
anime the books of the treasurer and
see that they have been correctly
kept"
AS the auditor does not appear to be
responsible TO anyone for the perform
ance of his duties and is no; required
to make report to anyone as to
whether, or to what extent, he has
checked the treasurer's books, there
is no means provided for ascertaining
whether or not there has been prop
er administration of the funds of the
county if the auditor neglects his
duties.
We consiDr that the auditors duty
(as mis- name implies) should be TO
audit and check the administration of
The county affairs. Under the present
system, the auditor is really one of
the bookkeepers in the county office
(CanfinuAd on Paoa AZ