Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-06-28
TO AUDIT BILLS.
New Factor in Controversy
Al State Institution.
Auditor Callahan Recommends
Changes Of Trustees.
Move Prompted by Developments
Together with New Law.

The very recent controversy con-
corning the Maine Insane hospital adj
miniStration and The law enacted in
the 18th Legislature, which provides
that all bills for public institutions
must be audited before. instead of
after, being paid as has been the Gus
tom in the past have prompted state
Auditor T. f. Callahan to send the
following letter to DR.. Seth C. Cor
don, president of the board of hospi-
tai trustees.
The recommendation that there be
an interchange of prices for groceries
and other supplies purchased by the
various institutions is prompted, it is
said. by the fact that there has been
vide discrepancy in the prices paid by
different institutions for the same
class of articles A cost sheet with a
circulation among the different pur-
chasing agents. could not help being
great money saver for the state
The State auditors suggestion that
all bills be approved in writing by a
committee of trustees or by any other
method that indictes that the trus-
tees have an intimate knowledge of
the bills which have been paid or to
be paid is also in the line of certain
DEVELOPMENTS which the State audi
tor has come upon in the examination
of the bills of the different insttu-
tons.
The suggestions embodied in the
third para graph will also be found in
teresting by the trustees of the hos
ptals when they are brought into
comparison.
The Importance of this letter hes
not only in the attention 1t calls to
the change of methods of auditing
but also in the suggestions which the
state auditor makes. The letter is
as follows:
June ?, 1913
DR.. Seth c. Gordon President. Board
of Hospital Trustees, Portland, Me.
NV Dear Sir: Chapter 2tf, of the
Public Laws of 1913 will become effec-
tive on July T. Under this new law
all bills must be audited Before be-
ing paid instead of the present method
of being audited after payment
In view of the complete change that
this act contemplates in the me'hoa
of accounting and payment OF biils at
the two insane hospitals, | Wish TO
make a few suggestions and also TO
ask for certain information. the know
ledge of which is necessary for inns
office. =.
1st-Havins noticed at times dill
ference in the prices of groceries ana
other supplies paid by the various
snstitt1tions, would recommend 4
monthly interchange between the vafl-
ous institutions of q cost sheet. snow
ing the prices paid for the same afu-
cles nv each. In this way each inst-
tuition would have the benefit of the
knowledge of other State institutions
acouired in purchasing supplies for the
state.
Cd would suggest that all bills be
annroyed in writing by committee
of YOUR trustees or by one member
DESIGNATED by your full board before
heinr sent to this office. This would
indicate that each bill had been eN
amined and that the trustees had an
intimate knowledge of all the ollis
that We're being forwarded for pay
ment
Bird. That this office be furnlsheo
with full information as to contracts
with all officers of institutions undei
control of your board. This Will en-
n HE the auditor to know what per-
quisites. if any. i'll addition to salaries,
are allowed to the officers of the in
stitutions and will give us information
relative to equipage used at the in
stitution and what part of the expense
of such shall be borne by the state
This will enable this office to distin-
gush between a public and a private
charge.
Very respectively
r. f. CALLAHAN.
State Auditor