The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1915-08-11
EXPERTS URGE
new METHODS
IN CITY BOOKS
Accountants Find Few Minor
Discrepancies in Records
of Public Funds Kept by
McMahan.
RECORDS ARE BLAMED
Controller Says Board Failed
to Heed Repeated Requests
for Books Necessary in
New System.
RECORDS ARE BLAMED

and L. F. Orr of the state boarc
of accounts in reporting upon
the result of their recent inves.
tigation of the records of the Of
flee of the controller of the city
Of Richmond, E. G.. McMahan,
take occasion to complain of the
system of bookkeeping in vogue
in that office although only min
or discrepancies are shown . in
the controllers records. For ex.
ample the report shows that the
controller failed to make a rec
ord of the receipts of so cents
for dog license and in another
place sets forth the fact that the
controller beat himself out" of
one cant.
gre In part the report reads: During
the course Of our examination for the
year 1914 Of the special (waivered)
Improvement fund we were led to be.
lieve that there was a considerable
shortage Of funds in the repositories
as of January 1, 1914, obtaining to the
said special fund. Accordingly we per.
sued our investigations of said fund
back into the years 1913 and 1912. de-
veloping an actual shortage due to
over payments on account of bonds
and coupons to the banks in Decem-
Der, 1913, arising through Implications
of bonds and coupons due and paid
as per July of that year"
1t is then shown by the field exam
fners that in December, 1913, the con-
troller in calling in certain bonds and
coupons duplicated those Of the list
called in in July of the same year.
ing April, 1915, the monies we're re-
funded to the controller by the banks,
and he has corrected his records &C.
cordingly as directed by us, leaving
no charge on account of same upon
the filing of this report"
Overpays All Banks.
Overpayments to banks referred to
In December, 1913, amounted to the
following sums: First National, ST.
681.39; Second National, s1,OOs.5S;
Union National, $S631; Dickinson
Trust company, $16936.
Controller McMahan said today that
the errors resulting from the calling
in of bonds in 1913 were due to the
method of keeping bond
records which obtained until few
years ago. McMahan also asserted
that the bookkeeping system in his Of
flee which the field examiners COM
plain of is entirely the fault of the
state board of accounts
Several times have requested the
board to supply me with books so that
could keep my records in the man
ner they expect me to-" he said. Il am
always informed that this will be done
just as soon as the board can get to
The matter.
Other Accounts o. K.
The report states that excepting the
special, or waivered, street improve
ment fund the controllers accounts
have. been properly handled. Consider
Ing the system of bookkeeping en-
ployed.'
The report also states: "The record
Of receipts and disbursements detail
ing the several funds are Inadequate
10 the demands Of the city Of Rich
nond.
In setting forth their audit Of the
city's general bank statement, the
statement is made that a deficit was
found in the bank accounts of the
county treasurer, who is also the city
treasurer, but adds that this deficit
has been properly cared for.
In a supplementary report on the
special street improvement fund, this
statement is contained: "
"Watvered improvement accounts
have been separated since May l.,
1919. but as no cash book account Of
improvements showing receipts, dis
and balances or over.
Traits In each, have been kept by eth
er the controller or treasurer we were
It considerable difficulty in the sepa-
-ation of same for the year 1914 AS
provided by statute it is mandatory
hat the accounts of each improve
nent be kept separate. Records kept
u accordance with same would great
= reduce the chance of committing er-
aors In same. and make an examina-
don less difftcult."