The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1919-10-10
PROPOSES NEW SYSTEM
OF AUDITING ACCOUNTS
Recommendation in Report Of w. r.
Gray Submitted to Governor
CIemenf


Montpelier, Oct 10.-Prof. w. r
Gray of Dartmouth college, who re
Gently audited the state treasurer
accounts and submitted the report Il
Gov. Percival w Clement, Offered
many suggestions in the way of i'm
proving the auditing system of The
state OF Vermont that it is highl,
probable that the majority Of then
will be adopted
A few of the suggestions are a,
follows;
The former practice by which the
treasurer was expected to draw direct
| ly on banks for the salaries and ex
penses of himself and assistants, anC
afterwards to cover these checks by
an auditors order, appears to have
been contrary 70 the intent of the
law. This practice is changed under
the new system, however, and has
been abandoned
'ln my opinion, there is question
able eXpediency in requiring the
trea surer to assume responsibility fol-
disbursing, outside of the regular rou
tine, large sums on such accounts as
|
tribution of U. s. deposit funds and
pay to soldiers. Such provisions in
acts of the Legislature tend not only
TO impose undue responsibility and
burdens upon the treasurer's office
but also to break down the safe
guards provided under the system
normally governing the disbursement
of state funds
Suggestions in regard to the audi
tor of accounts were offered as fol
lows:
Under the necessity of rising costs
and eXhausting of appropriations, the
payment of expenses in considerable
amount. incurred near the close of the
fiscal year, apparently must be defer.
red until appropriations of a new fs
cal year are available. The obvious
result is to throw upon the latter peri
cd the burden of expenditures incur
red for, and properly chargeable to.
the year, closed. Cash discounts must
also necessarily be sacrificed From
the accounting point of view the re-
suit is also unfortunate, in that the
dates pertaining to expenditures are
rendered inaccurate and unreliable as
an index of economy or as a basis Of
comparison year by year. Moreover
in the present form of auditors re
port the bills unpaid at the close of a
fiscal year are not exhibited. thus af
fecting the validity of data relative to
the assets and liabilities of the state
recommendation advanced by
Prof. Gray include:
To the state treasurer:
Il recommend that the adyisability
of providing for more frequent exam
nations of the treasurer's accounts
be given careful consideration. 1t is
suggested that under such a plan,
representative of the auditor would
make a monthly examination covering
at least the following:
"(a) Verification of cash on hand
and reconciliation of bank statements
with the books of the office.
"(b) Comparison of amount of
funds received according to treasur
er's records, with reports of funds re-
ceived by other state departments or
officers and covered into the treasury
"(c) Comparison of records of
treasurer with pertinent records of
the auditor.
"(d Inspection by tests, to deter
mine whether prescribed methods are
being followed
81 believe that if such a plan we're
to be adopted and made a matter of
practice, it would simplify
and facilitate the annual audit requir-
ed by law and indeed might prove
more effective than the latter. AS |
have suggested heretofore, this rec
reflects no discredit
upon the present conduct of the treas
urer's office, but is made rather with
a view of ensuring the maintenance
of standards established under the
present efficient administration of the
office.
To the state auditor:
'In line with comments previously
made, 1 recommend that when bills
against the state remain unpaid at
the end of fiscal year, such bills to