Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-08-07

work. not only of the treasurer and
fiscal officers, and of every admins
, trative officer, but of Their trusted
agents-from the highest to the low
est. II is, of course, always desirable,
if for no other purpose than to show
the financial standing OF each of our
departments of government, that the
amounts OF its receipts and eXpendi
lures be known from year TO year, or
, at other periods, as well as its obi
cations; but if real progress is to be
made in the way of improving the
organization and business methods,
our financial records must be of such
a character that they will furnish the
basis for passing judgment upon the
extent to which. the value received
for expenditures made is adequate.
Government activities can only be di
rected in the most desirable channels
by securing this information.
THE underlying principle, there
fore, of modern uniform public &C
counts is the framing of the account
ing scheme on a unit cost basis. With
these costs, responsibility can be fix
cd for results of operation. This is
the sole object of the classification of
accounts advocated by the Bureau of
the Census. Not only will costs of
operation be obtained which can be
compared with those of other cities
Of corresponding size, but standards
will be established which can not be
overridden. By the adoption of such
an accounting system in our public
n oY-fr1 nnhlin nlnxyn in
the Territory would have to realize
that his work is being measured by
this standard. No administration or
municipal party could afford to go be-
fore the voters for endorsement if
its mayor, or board of supervisors, or
other officials were shown by such
cost analysis of operation to be less
efficient than his predecessor.
THE form of accounts in our local
governments generally follow the
functional lines before referred to, but
the published financial statements,
from time to time, do not furnish in.
formation as to the things done or
the wisdom of doing them, neither
are the records useful guides in fu.
ture transactions. What we need are
"a Financial statistics, (2) physical
and operation statistics, and g. re-
suits expressed in such terms of units
of measurement as will most clearly
reveal cost or other factors by which
the real efficiency and economy with
which government affairs are admin
istered can best be determined.
Another feature OF tnc improved
public accounting would show us rev.
enues accrued during fiscal period
instead of merely cash receipts, and
expenses incurred, instead of only
these paid in cash. The financial
statements Of cur fiscal officers should
also show how the financial program
as. outlined in the annual budget, pre-
pared at the begiBningFof the year,
has worked cut The budget and ap-
preparation GrdinanesssTare' very I'M.
portant features sof, stheSeity's' plan Of
government - r.. g. ~
Many of the unfortunate conditions
which were recently shown to have ex-
listed in cur public finances can be at
tributable to similar known causes in
other communities, and which we're
only remedfsd by an Independent and
strict SUPERVISION over the public
funds 1t is manifestly unfair to our
honest officials-and they are vastly
in the mapority-to claim that the sole
object Of such supervistoR1is to, pre-
vent fraud; the knowledge, however;
that thorough investigation will at
any time be made by impartial judges
has prevented many a weak brother
from falling through temptation. H..
"One of the most important features
CT similar audit departments on the
mainland has been the efficient public
fly which has been given to all phases
of government activities I This has
resulted, not only in a better under.
standing Of the problems which con-
frcnt administrative officers, but has
fcstered spirit Of cooperation be-
tween officials and taxpayers which
has been of the greatest possible ben
eft to the community" -.E-
Mr.. Spalding said
Il have been requested to speak on
the necessity of radical change in the
financing of this territory. This is
broad subject and one that / am not
prepared to treat extensively in de-
tail of expenditure as that would re-
quire an expert investigation of the
whole system of government, both
territorial and county; but there are
certain general conditions which are
evident, namely, that we have been
living beyond our revenues, that we
have not had value received for the
money expended that our. govern.
ment has been conducted on the bad
policy of borrowing money, and that
the sooner we awake to realization of
the fact that this state of affairs can
not long continue. and determine to
put on the brakes, the better it will
be for ourselves and for posterity who