The Spectator., 1915-06-18
Report of Legislative Investigating
 Committee

That the systems of bookkeeping and accounting put into use in the state departments by the legislative auditing committee will result in a re- duction of the clerical force at the state capitol and make possible an- other auditing of the accounts in one. fifth the time required by the present committee. is the statement made in . report to Governor Hays. The re- port has been submitted by the com mittee The message sums up the work done by the committee, and adds that the work Tn the state depart ments to be investigated probably will be completed within 30 days.
 The Report.
 The report handed Governor Hays follows:
 audit the state departments and insti- tutions beg leave to submit to you the following report on the office of the auditor of the state of Arkansas Our accountant, MT. Thomas, has just handed us his report on this depart ment It includes the report from January 1, 1911, to the present time. The time embraced in this renort are the last two years of the administra- tion of John R. lobe; administration of John M. Oathout, deceased; admin istration of L. L. Coffman. and the s,~s. M n,Al, A0 date
 We are glad to say to your excel lency that with but one or two excep- tions we find that the accounts in this office have been handled in such q way by the different auditors to be above censure or criticism except as to the matter of handling accounts and vouchers. and in regard to this is more largely due to the inadequacy of the law and the anticipated system which is used in the department than to any other cause.
 ''The auditing of this department has been a very tedious and volpmi- nous task. The business of all the other departments of the state gov ernment, as well as the business of all the schools and institutions of the state is transacted through this de partment It Is because of this that so much time has been required to complete this audit
 "In our opinion there is one change that should be made in the law gov erning the issuance of warrants. They are now made payable to bearer, but should be unquestionably be maGe payable to order. Under the system, as 1t is now, the head of an institu- tion can issue vouchers to Its em- ployes and present these vouchers to the auditor and have warrants issued payable to bearer and he can then go to the treasurer and cash these warrants without authority of the payee. We are not assuming that any dishonesty has been practiced in q general way because of this defect in the law.
 Could Pay Nonemploye.
 We recount one or two instances. where it has been done in the past, only which serves to show the possi bility of wrong doing on a larger scale. Under this system there would be no difficulty whatever in the head of an institution issuing vouchers for persons not even in his employment and getting warrants issued on these vouchers and cashing them. This de fart In fbn 1au chny1a a in11y hn remedied at the next session of the legislature. It might be well in this connection to mention the fact that heretofore and during the period GOV cred by this audit. the University of Arkansas has been allowed to draw out the appropriation made for its use in large sums and deposited in n bank and checked out by the properly constituted authority of the institution which gives absolutely no check on the institution in the auditors office as to the disbursement of these funds However. in the last legislature the appropriation bill for this institution provided that all it's funds should be paid out by the treasurer on way rants issued by the auditor and no warrants can be issued by the audi tor except an itemized statement Is filed with the voucher submitted by the institution.
 Tt might be said here. that while the fund appropriated for the use of the agricultural schools cannot be drawn out of the state treasury only by vouchers being filed with the audi tor of state ana a warrant issued thereon. there is no provision in the law for an itemized statement to be filed with the vouchers in the auditor of state office. and the whole of such funds is absolutely fin the hands of tho respective institution to be drawn out as they see fit and no information can be obtained in the auditors office in