The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-10-28
OF have any relation to functional

not have any relation to functional
activity.
Cost data were also neglected.
Therefore a comparison of cost with
service could not be had in terms
definite enough for administrative
control. When departmental esti-
mates came to the board Of estimate
their author expected them to be cut
as much as 20 per cent. No admins
traitor is efficient under such condl-
tons. Responsibility and the depart
mental estimates now very generally
pass the board unchanged. Just re-
quests for increases under the old
system suffered on account of the
customary 1910 per cent cut. The
health department in 1906 felt thus
handicapped and made due complaint.
This was the beginning of h seq
regated functional budget.
At present New York has an ac-
counting system second to no corpora
ton, public or private, in the country.
The principle underlying the account
ing and budgetary methods is that Of
functional activity. Now it is posi-
BILE to tell in advance just why and
where increases in expenditure oc-
cur, responsibility is definitely located
and control exercised. If salaries are
increased we know exactly why. We
know just how much per patient per
day the hospital requires. This can
be compared with other hospital costs
and always to the benefit Of the re-
| sponsible officer as well as to the tax
payer. 1t no longer takes a voucher
twenty-three days to pass through the
finance department but only five.
| Claims can no longer be pigeonholded
| unknowingly or without definitely fix
ing responsibility. Monthly balance
sheets are made out in each depart
ment. More significant still Comp
troller Prendergast is now working
with the bureau on a municipal bal
ance sheet, which will show for New
| York City what a balance sheet shows
for a private corporation. This will
soon be completed and then the citizen
of that city will know what the assets
Of the city are as well as it's liabili-
ties. Only a few years ago 1t was
impossible for n official or citizen
to know within $25, 900, 900 what the
debt was. Departments are now re-
| quired to spend the appropriations for
the exact purpose i~ntended-a long
leap in advance in efficiency. The ac-
| counting system and the budget now
furnish for the first time a guide for
the future Of revealing at a glance the
past.
lie pLll1Clplc VI Tic SSSEESdLSu
functional budget must find it's way
into all governmental units, city,
county, state and nation. 1t is now
only a question of when the principle
will be adopted. From the standpoint
of the public it is Invaluable. Now,
before the budget is passed any citi-
zen car find out where the increases
are. This ought to quell irresponsi-
BILE criticism of wasteful methods and
policies tolerated in government.
The segregated functional budget
and reconstruction Of the accounting
system are accomplished facts, and
are therefore no longer subject to the
criticism Of being visionary schemes.
People are beginning to understand
that a city needs an accounting meth
odt fully as efficient as a private COR
poration. We need now but to watch
with what rapidity the new function
al idea will be adopted in all the
units of government. The commission
form of government is a prerequisite
to good administration but recon
struction of the budget and account
ing system are the first cal steps in
the curse of political advancement.