Grand Forks daily herald., 1914-12-24
December 81, 1914.
. nf fno JIocoll jsra n

VI ~. L.
My Dear Sir: Attorney General
Miller is quoted in an interview at
Bismarck, under date Of December Z,
as being in favor of an investigation
OF financial conditions in educational
Institutions and also as wishing to
seek IL more efficient method of tinan-
I; cial administration. The interview in
clutles q statement to the effect that
there is practically no system at all
of financial administration and the
heads OF the various institutions them
selves do not know how much money
they are spending neediessly.
The interview goes on to say
further that the trustees of the vari-
Gus state institutions are virtually but
being to audit bills already in effect.
Attorney General Miller Is man
who has had the confidence and re-
spect of the people of this state for
good many years. He has been
. trained as n lawyer, and knows the
relation Of evidence and the charac-
ter OF proof; but it is q question
Of the business offices Of the different
educational institutions, and it is also
doubtful whether he has examined
any of the ledgers, books, or account
inA methods in vogue i'll these insti-
tut1ons.
lI1C University.
cannot speak for any institution
other than the university. but since
January /, 1914, the board of trus-
tees Of the university have met seven
times and the executive committee of
the trustees Of the same institution
have met In addition to that eight
times. The minutes Of these meetings
cover $50 closely typewriter pages.
The budget Of the university is
4
| Of trustees. This budget covers 20
typewriter pages, showing the pro-
posed expenditures for every depart.
ment and every activity of the uni
versity. No expenditures are made
outside the budget allotments. In ad
dition to that there is placed on the
presidents desk each month what is
which is indicated the amounts of
receipts by months and totals and the
amounts Of expenditures by months
and totals, and the expenditures of
the different departments. The ledg-
ers of the university show, in almost
too painstalking way, the nature and
character Of every expenditure. The
daily report in which the amount of
coal burned. the water used, and the
service rendered are all set forth in
detail. There is also a dial showing
the variation in steam pressure for
every hour in the day and this report
! is filed with the superintendent Of
buildings and grounds.
State Bookkeeping.
One of the difficulties in this whole
situation is that the state departments
at Bismarck have not had and do not
now have an adequate system Of book
keeping. That is clearly shown in
the statement made by the Temple,
Webb company Of st. Paul, Minn.,
concerning the whole accounting sys-
tenn Of the state, and the efforts Of
Governor Hanna to bring about bet
ter conditions in this direction are
certainly to be commended. Again,
the books of the state auditor are
kept from January to January while
the official year for the state insti-
tutions is from July to July. Still
again, the accounts kept at the capitol
and the distinction between capital
investments and current expense is
not made. Neither, for that matter,
is it made by the different institu-
tons.
Distinction Lacking.
Another difficulty is that the people
of the state have not been called upon
to make distinction between these
two points of view. 1t is essential,
however, that what goes into building
of plant should be markedly separ-
ated from the current cost of con-
tinuing the operation of the plants.
In the expenditure for buildings the
state is adding to it's assets, but under
the present system of accounting it
Is marked down as maintenance cost.
Nor has there been a distinction made
between the monies paid to the uni
versity and the agricultural college,
in particular. for the conduct of vari-
GUS enterprises that are distinctly nom
educational. Hence a great deal of
confusion arises in bringing out
clearly what the actual cost of edu-
cation is and what is being expended
for experimental stations, agricultural
stations, etc, and other activities i'm.
posed by legislative act.
New System Planned.
The university board of trustees
engaged the Temple, Webb company
Of st. Paul the same firm that did
the accounting work at the capitol, to
go over the whole accounting system
Of the university for the past five
years. to audit all accounts. bills and
items Of expense, and to draw up a
general balance sheet, to make q
statement of the receipts and expen-
ditures during these five years, and
to submit such plan for the reorgani-
zation Of the accounts and methods
OF expenditure as they saw At to rec
ommend. This report will be ready
about the 9th or 9Th of January and
VIII ba at the. disposal Of the legis.
laturs II It desires to use II