New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1915-05-12
Accountants Make
Many Suggestions
PRACTICALLY ALL OF CITY
LARGE 'ovERDRAFTs.
NEW SYSTEM OF ACCOUNTING
muse. CITY CLERK NEEDS
AN ASSISTANT.

The report of Warwick, Mitchell
Peat & Co. the chartered accountants is
both exhaustive and voluminous and
consists of twenty-six typewriter pages
and an index of twenty-five pages con-
tanning fourteen exhibits.
Exhibit "a" covers the electric light
department income and profit and loss
accounts for the year ending Feb. %,
1915; Exhibit "B" the same depart
ment's fund accounts for the year ending
March 31st 1915; Exhibit "C', the
waterworks departments income and
profit and loss accounts for the year
ended Feb. %, 1915; Exhibit ''D'', the
same departments fund accounts for the
year ended March 81, 1915.
Exhibit "E" covers the revenue and
expenditures of the administration fund
for the fiscal year ending March 81, 1915;
Exhibit "F' the revenue and expenditure
of the street fund for the same period;
Exhibit &C" the revenue and expendi-
ture of the sewer fund; Exhibit III
the revenue and expenditure of the Fire
Department Fund; Exhibit "J'' the reve-
nue. and expenditure of the Park fund.
Exhibit ''K'' covers the revenue and
expenditure of the Public Cemetery
Fund for the fiscal year; Exhibit IL
the revenue and expenditure of the
interest and sinking fund; Exhibit 'M''
the revenue accounts of the cemetery
trust fund and city hall fund.
Exhibit IN" is the balance sheet as
of March 31st, 1915, and Exhibit 20"
is the summary of the insurance in force
as of the same date. sss -> -
1t appears from this report that all of
the funds, with the exception of the
Public Cemetery Fund are hopelessly
overdrawn. The Administration Fund
is overdrawn to the extent of $13, 914.24,
an increase of So, 114.59 over the previous
year. The Street Fund is overdrawn
to the extent of 31,412.19, an increase
of $25,385.33 over that of last year.
This increased deficit is due to the
paving of Minnesota Street. There is
due from the property owners on deferred
payments for street Improvements ap-
proximately $4,000 which will reduce
the deficit in this fund to that ex-
tent.
The Sewer Fund Account is over
drawn to the extent of $4,002.12 an in
crease of $2,415.39 over the previous
year. The Fire Department Account
shows a deficit of $5,456.51. This
deficit has been increased during the past
year to the extent of $3,439.76. The
Park Fund is overdrawn to the extent of
$1,465.94, an increase of $1,263.77.
There is balance in the public Cemetery
Fund of $388.76, an increase of $42.51.
At the beginning of the fiscal year these
funds were overdrawn to the extent
of $21, 1851. This has been increased
to the extent of $35,576.33, making a
grand total overdrawn of $50, 742.24.
To enable the city to meet it's obliga-
lions it became necessary to borrow
from the several sinking funds, hence the
condition of the various working funds
at this time.
In their report the accountants say
that no depreciation has been written
off the cost of the electric light and
waterworks plants since their installation.
They refer to the fact that the Super
intendent is at present engaged in
making an inventory and valuation of
the plants which when completed will
require the book figures to be adjusted
to the new values as found. They
recommend that adequate provisions
for depreciation be made in future years.
They again recommend that in future
more attention be paid to the question
of Funds so that over-drafts in any Of
the Funds may be avoided. The Sink
ing and Trust Fund should be placed on
deposit Immediately they are received
and the interest on Bonds when due
should be paid out of the cash on deposits
except in the case of the electric light
Bonds; the interest of which is met out
of current revenue.
The working Funds have borrowed
from the sinking funds to the extent of
$15,831.32 and there appears to be little
prospect of this being returned. How
ever, they have calculated that after
deducting this amount there will still
be sufficient in the fund at the present
annual rate of accretion to provide for
the sewer and electric light bonds at
maturity. T