Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08
Report of Audit Company.

REPORT Oh Au0u COmDanys
The report made by the audit COM
pany says!
REPORT BY, AUDIT COMPANY OF
HAWAII ON AN INVESTIGATION
OF THE BOOKS OF THE COUNTY
OF HAWAII
Hon A. F.. Judd, Chairman, Senate
Hold Over Committee, on Ways and
Means, Honolulu. T. II.
Sir: AS instructed in your letter of
January Bird, we have made an Inves-
tigation of the books of the county of
Hawaii with a view to determining
1. Whether there has been any in
correct, Incomplete or improper adj
ministraticn of the financial affairs
OF the said county.
2. To ascertain where the system
in use at present is lacking or weak
and The changes necessary to safe
guard the proper administration of the
oounty's financial affairs IN the fu-
ture.
We have accordingly divided out re-
port sinto two parts as outlined in
your instructions and beg to report as
follows, viz:
PART /.
In dealing with the matters contain
ed in this report it must De borne in
mind that no attempt was made to
make a complete or detailed audit of
the books.
The system of accounts presently.
in use in the office OF the county il
briefly as follows:
Accounts against the coun:y are ali
made out on the official forms known
as demands. After these demands
nave been certified as cerrec; by the
head of the department to which they.
pertain they are lodges with the
county clerk. These demands are
numbered consecutiyely, signed, and
dated by the clerk and presented by.
him at the first meeting of the board
ceived. After being passed ny the fl
nance committee Of the BOARD Ito
whom they are referred) they are
marked as having been passed for "a
certain sum payable out o: q certain
appropriation. dated and signed by the
chairman of the board of supervisors
end the county clerk.
These signed demands are Their
: handed to the auditor. He then is
sues warrant payable to the indi-
Nidual of firm named in the approved
demand These signed demancs con-
stitute the authority of the auditor for
issuing warrants in payment of the
came.
The treasurer pays the warrants is
sued by the auditor with check
drawn on one of his accounts with the
First Bank of Hilo, Ltd. There are
six accounts with the bank, viz: Gen.
eral, roads, school, permanent, i'm
proveTnent, reserve, and preservation
of game, in the name OF Cnas II.
Swain, treasurer of the county of Ha
waii.
Auditors Office.
We found the books in this office
very badly kept and the recorGs unsat-
isfactory.
The general ledger die not. balance
at December 31st, 1911 by $6,464.61.
From this it follows that any state
ment made from the books as to the
financial standing of the county at
that date could not be relied upon.
TIE stubs of the warrants, IN many
cases, did not state the numoer or the /
demand for which the warrants were
issued although space is provided
for that purpose.
we found the books of the auditor
in such a condition that it was impos-
sible for us to arrive al any correct
statement of the finances o; the coun-
" without making a fuiier or more
complete audit of all the books and
records kept in his office than the
time at our disposal ena0ied us to
make.
The register of warrants issued of
the general fund should contain list
of the warrants drawn, Inc number of
each warrant, the name Ca the person
TO whom payable, the Appropriation to
which chargeable, and the amount. AS
the amounts are posted direct from