Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-07-10

| lands Electric Co.
Shortcomings of Some
| Charitable Institutions
THE management of most charitable in
stitutions is very apt to take it for grant
ed that everybody is honest and thereby
a great mistake is often made" remarked
Capt. James F. Bagley, secretary of the
State Board Of Charities and Corrections,
in discussing the unintentional ineffi-
cheney of some Of these institutions.
There is often woeful lack of SYSTEM
he continued, and the business Of the
institutions is sometimes conducted as no
business man of ordinary intelligence
would conduct his own business
The board has been obliged to make a
great many suggestions in order to make
the records of some Of these charitable
institutions efficient, to make them tell
something. Among the suggestions which
the board was obliged to make in it's last
annual report are the following: a
closer accountability Of subordinate off,
GERS and employees for receipts and ex-
penditures; careful and prompt record of
all bills incurred whether funds are
available for the payment or not, and
that accounts be kept upon basis Of the
actual expenses incurred and income due
or earned instead of upon a basis Of
cash actually received and paid out; du-
plicate or triplicate written order system
in purchasing and checking supplies. and
that more responsibility in this respect
be placed upon executive ouicers and
employees; deposit Of all funds collected
with the treasurer and payment of all
expenses except those involving fractional
parts of a dollar by check; itemized bills
Of the travelling expenses of employees to
be required and to be passed through
the treasurer's accounts in the same
manner as other expenses: simpli1-
cation Of financial records and cutting
out OF Implications; that it is costing too
much to secure maintenance funds by
paid solicitors; that loose leaf or card
patients ledgers be used instead of
bound books; that additional clerical as
sistance be given to the superintendent
so that more of the time of that official
can be devoted to administrative and SUI
pervisory work and the records be prop
erly kept and that unpaid accounts be
followed up; records of charity service
rendered and its cost from month to
month, so that the directors. trustees and
responsible executive may be advised as
to the danger of mourning deficits which
cannot be met. or that ways for meeting
such deficits may be devised as soon as
they become imminent: that vouchers be
entered in the invoice register at the
h0f how -
waiting until they are paid that a gen.
eral ledger be kept in which all of the
accounts are summarized and record
made of all of the resources and liabili-
ties and trust funds of the institution;
that comparisons be made from month
to month Of the cost of operating the in
stitution, not only as to the previous
month, but the average of the preceding
year and the corresponding month of
the previous year; that serially numbered
duplicate receipt system be used for all
moneys received that provision be made
Tor a regular audit of the treasurer's ac-
counts; that while the admission of pa
tients should very properly be left to
the superintendent. the superintendent
should in all cases be required to make
patients to pay for the treatment given
and be held solely accountable to the
directors as to whether or not charity
service in whole or in part shall be grant
ed; that where possible other evidence
than that of physicians as to their pa
tents financial condition should be OBJ
tanned; that all accounts be kept by
salaried bookkeeper.
At recent meeting Of the board the
more important Of these suggestions
were summa rized applying to all chart
table institutions that receive State as
sistance and come under the supervision
Of the board.
That the treasurer shall be bonded
That there shall be at least an annual
audit Of his accounts by an auditor who
is not an officer or member of the board
of directors and written report made by
such auditor to the directors, stating the
conditions found
That all money received shall be de-
posted in the bank by, or to the credit OF
the treasurer or other disbursing officer
That serially numbered duplicate re-
ceipts shall be given for all money re-
ceived and the duplicate audited in con-
uCCtiUH With Tile amount Oh money de-
posted in the bank. or that some equally
effective plan of enforcing accountability
for money received shall be used
That properly itemized vouchers shall
be required for all disbursements, and
that all disbursements shall be made by
check. payable to the order Of the person
or firm furnishing the service or supply.
provided that checks for the full amount
Of the payroll may be drawn to the order
Of the disbursing officer and the receipted
payroll filed as a voucher. and checks
for petty cash disbursements or travel
ing expenses may be drawn ia, the order
Of the Officer or employee making such
disbursements, or mourning such ex-
penses, upon properly itemized bills for
expenses incurred or lists Of disburse-
ments.
That the treasurer shall keep a record
- al lie ;l{t;As In nd irunai and