The Barre daily times. (Barre, Vt.) 1897-1959, 1918-08-17
What Bank Examiner VIII
liams Found in Former Au-
ditor Graham's Accounts
WHEN AND HOW HE
FOUND THE SHORTAGE
Tells Why They Were Not
Discovered Before
by Him

| NfN'NN-eN% N@SS'NHAANN+
published stories of Governor Graham's
accounts as auditor, reference has been
made to Mr.. Williams. For this reason
the bank examiner has given out that
part of his annual report which he will
make to the legislature of the result OF
his examination of the office Of the au-
ditor Of accounts from March 20, 1918, to
May II, 1918.
The report is as follows:
During my term of office as bank com.
missioner, ! have made examination Of
the auditors books and papers for each
biennial term from time to time as /
could get time from my other work and
when the clerks in the auditors office
could spare the books. Very often it has
been done few days at time, extend
ing over several months The business of
the auditors office has increased so much
in the past 10 years that the physical
labor alone of handling the large number
of accounts and items is very great
| The practice in the auditors office for
a long time has been to advance money
to state officers with which to pay sal.
aries of clerks and expenses of the de
partments, and these advances have been
carried on the books as charges to which
credits were later made when the ac-
count was adjusted either in whole or in
| part, and as the close of the fiscal year
comes in the middle of a quarter, many
| such advances are carried over into the
next year. Some departments, like the
| highway department, require large ad-
vances in order to carry on the work
properly, and great many of the heads
OF departments advance a large amount
of their own money to pay the expenses
for the quarter, unless the state ad
yances it. This custom has prevailed in
the auditors own account, as well as in
that of other state officers UP to the time
the present auditor took Office Auditor
Gates has not taken any advances upon
his salary or expenses. The legislature
at its last session passed an act author
| izing advances to state officers by the
auditor for the purposes indicated above,
provided that a bond should be given to
secure the advance. Beginning July ! of
this year, the present auditor required
all state officers to whom he had made
advances to make settlement. Ex-Auditor
Graham paid the expenses of his depart
ment, both salaries and other expenses,
by his own checks and drew money in
advance on his orders as auditor to be
used for that purpose, so that there was
balance against him a good deal of
the time during his term of Office. Dur
ing the summer of 1917 the state board
of health advised me that on account Of
ka aF Tv,funAifa 1yaf1
and near Montpelier they felt that |
should either stay in Montpelier all the
time or move my headquarters to New
port, as they did not think it wise for
me to be continually going from Mont
pelier to other sections of the state, con.
sequently ! made my headquarters dur
ing the summer and fall of 1917 at New
port, doing the work over the state from
that point, and no examination Of the
auditors Office was made during that
year.
On March 26, 1918, began the regular
examination of the auditors Office and
during the first two weeks / found that
ex Auditor Graham had drawn orders to
himself since my last examination,
which was made after the close Of the
fiscal year of 1915, to the amount of
50, ISL 80, for which there were no re-
ceipts or vouchers showing expenditures
and there appeared on the books at that
time a balance which was not vouchered,
including the above, of S5,575.4l. ! called
the attention of Auditor Gates to this
balance. and he stated that he had been
over the books and felt sure that was all
that was not vouchered. | called the
attention of Auditor Gates TO this balance
and he stated that he had been over the
books and felt sure that was all that
was not vouehered. | called the atten-
tion of the governor to it, and he said it
would be adjusted Immediately. | con
cluded to make a more extensive and
complete examination, which extended
over several weeks, and in which / had
the assistance Of Mr.. Lorimer part Of
the time and my clerk the balance of the
time. This examination disclosed the
fact that there were orders drawn bv ex-
Auditor Graham TO himself during his
term of office amounting to Sl7,0S0.4s,
and there were two orders amounting
to $1,000, the ayails of which he had
charged in two different highway ac-
counts for which no credit vouchers can
be found. The first of the orders for
which there were no credit vouchers
were drawn during the years 1909, 1909
and 1904 and amounted TO $l,l00, aud
the files of these two items appear to be
missing Orders were drawn by him to
himself during the term of Office of my
immediate predecessor to the amount Of
$4,000 for which there are not now voueh-
ers or receipts The balance of the orders
drawn to his order for which there arc
no vouchers or receipts was during my
term OF office.
Previous to this examination / had
never checked up any of the auditors
books or accounts of business which was
transacted previous to my taking office
Auditor Gates was sick in bed during
portion Of the time that I was working
in the auditors office, and when he re
turned to the office he made an indepen-
dent examination and found number Of
orders which had not then
found and called them to my attention.
After having notified the governor of the
situation disclosed by my first two weeks
work notified the state treasurer and
on April "a / notified the attorney gen.
eraI of the amount of unyouchered or