New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1916-06-14
AUDITORS SUGGEST
MODERN METHODS
INVENTORY OF CITY PROPERTY
FOUND INCOMPLETE BY
EXPERTS.
CITY CLERKS REPORT SHOWS
GAIN IN FUNDS OVER LAST
YEAR.

w nile Cne AUTHORS VI Cue ClIy DOOhS
Warwick, Mitchell, Peat & Co. of Mime.
apolis, did not find any discrepancies ir
the conduct of the financial affairs OIL
the city, they do recommend that a
different policy be inaugurated by the
city council whereby the borrowing OF
money from one fund for use in another
will be done away with; also that the
sinking fund be kept intact for the pur-
pose for which it was created. The
conclusions of the expert accountant
in submitting his report to the council
are as follows:
We wish to call to the attention
of the council certain comments and
recommendations made in our pre-
vious reports, on which action has not
yet been taken. These may be sum-
married. as covering the following mat
tiers:
1. The provision of depreciation
reserves in respect of the capital as
sets.
2. The transfer of amounts from
funds showing surplus to those show
ing deficit, and the avoidance, in the
future of overdrafts on any of the
funds.
8. The borrowing by the working
funds from the sinking fund; the liabi-
lily of the working funds in this respect
has increased by $2,783.27 during
the year ended March 81, 1916.
4. The segregation of the value of
the water mains from the buildings
and Machinery account.
5. The taking of physical invento-
ries of stores on hand and the adjust
ment of the books in accordance there
with.
6. The placing on deposit of sink
ing and trust funds as received.
7. Additional help for the city clerk,
in order that he may be able to attend
to matters in connection with the
bookkeeping system for which he is
unable to find time at present.
1t is our opinion that an appraisal
OF the whole of the capital assets of
the city should be made, as it is evil
dent that whilst certain of the items
are carried on the books at an amount
in excess of their true value, there are
others, such as street sprinklers and
graders, furniture in the city clerks
office, etc., which have not been set
sup on the books.
We understand that an appraisal
of the electric light and water works
plant was made by the superintendent
during the year under review, and the
particulars thereof laid before the coun-
Gil, but no action was taken in the
matter.
The annual financial report of City
Clerk Backer shows that the city has
gained both in assets and liabilities
during the past year, the figures at
the close of business year ago showing
assets to the amount of $347 $685.,
while this year they total $374,O97.16.
The liabilities have jumped from $112,-
555.67 in 1915 to S123,479.59 for the
current year. Bonds to the amount
of $4,000 have been issued during the
fiscal year and $4,000 worth Of bonds
have been redeemed; also the floating
debt has been reduced considerably,
so that the total liabilities have only
increased $10,923.92, or an actual re-
duction in the expenditures of nearly
$4,000 over the previous year.
The total value of the assets in ex-
cess of the liabilities has increased
from $235,O4328 to $250,617.57 dur
ing the past year.
The bonded debt Of the city amounts
to 100000, of which amount $4,000
will become due July l, 1919. The
electric light bonds, amounting to 900
will not be due until 1921 and the bal
ance is strung out over a period OF
eighteen years.
According to the report the electric
light department shows profit OF
S14,478.O6 and the water department
S4,857.14, but as there is no provision
made for the replacing of the plant
as it depreciates, this only shows the
net receipts over the total expenses Of
the plant. Provision has been made
however, to partly take care OF the
replacing of the plant by placing GER
tain amount to the credit of the sink
ing fund annually and this now reaches
a total of $24,335.31, although severa
thousand dollars have been borrowed
by the working fund.
The administration fund shows E
balance of $28,791.4O and shows con
siderable of a gain over conditions
year ago when the fund was overdrawr
to the extent of $13,914.24. This func
received $4,000 from the new state
lion DURING the year. but the deficit