The Barre daily times. (Barre, Vt.) 1897-1959, 1920-09-16
VERMONT FINANCES
REPORTED ON
Accountant M. L. Blanchard's State
nent of Findings Together With
Recommendations

The following is the more essential
portion of the report which Nj. L..
Blanchard of Hartford made relative to
the examination of the Vermont audi.
tors and treasurer's books at the State
House:
In the course of the work, few mat
tiers were found in which it is thought
that Improvements may be made in
the accounting results now obtained, or
in the methods of accounting to the end
that the work may be lessened by the
elimination of duplicate records, or by
the changing of existing records. 1t is
desired in this report to comment upon
such matters, and suggest means of
possible improvement. However, before
discussing these features, which per
tain directly to accounting methods, /
wish to call attention to another diff.
Guilty found in the work of the state
treasurer.
To comply with an act of the general
laws, the treasurer must limit his total
deposit in any one bank at $200,000
II was found that at certain times dur.
ing the past year it was temporarily
impossible, on account of this restric-
tion, to deposit all funds without open
ing accounts with larger number of
banks, with the result that large
amounts were carried in the treasurer's
office at such times. This, OF course, re-
suited in loss of interest, and also
in the mourning of greater risk in the
safe keeping of funds. 1t is readily un.
derstood that the opening of new bank
accounts, unless required in the usual
business of the state, might be at least
impoitie, and, since the repositories
of state funds are bonded, it would
seem that the legal restriction might
be removed or raised to an amount
that would enable the treasurer to take
care of the increasing revenue, and con-
sequently increasing banking require
ments, without embarrassment.
Under the present accounting sys-
tenn it is possible to verify the treas
urers records of cash receipts with |
records kept by the auditor of ac.
counts. In the course of my work, such |
veri6cation was made, and it was
found that while the records were in
agreement as far as the total of re-
ceipts was concerned, there were many
small differences in the detail classifi.
cation of the receipts, both as to source
and as to availability. These differ.
ences are of no serious moment, though !
a comparison of the reports of the
treasurer and auditor. which appear BIZ
ennially in a single volume, would dis
close them TO the analytical reader.
They are, however, indicative of one
of the weaknesses of the present sys-
TEN, and that is the apparently useless
duplication of records.
There is some excuse for duplicating
records when one record is used as a
check against the other. II is even
highly desirable 20 duplicate records TO
the extent that controlling accounts
may be established to check number
Of subsidiary and detail accounts But
In this case there are two records, prac-
tically similar in the extent to which
they are detailed, and there is no check
between the two.
II should also be noted that the ledg-
ar kept by the treasurer, to which re.
,eipts are posted monthly, is closed
yearly with balances in certain ac-
counts, which are furnished by the aud.
tor. So that in the case of an account
where the receipts posted to such ac-
cunt in the treasurer's records are not
n agreement with the receipts so
Classified by The auditor, and where
here is a closing balance furnished by
he auditor, there is a resulting lack of
Igreement within the treasurer's rec
,rds. In other words, the beginning bal
lnce plus the receipts and minus the
disbursements, all as shown by the
treasurer in his records, will not equal
he ending balance.
II is, therefore, apparent that at
east there is no real benefit derived
rom the duplication, and | would sug-
rest that efforts be made to centralize
he bookkeeping so that in either the
reasurer's or auditors departments
omplete accounting records should be
,ept, and in no other department
hould records be kept except for the 1
of controlling or checking GER t
ain accounts in the general records, {
nd except that in case the general rec !
rds we're TO be kept by the auditor, as :
s practically the case at present, it y
would, of course, be necessary that the
treasurer keep cash and bank records,
s well as records of various trusts, '
hough these records could be very a
realty reduced in the present amount L
T detailed classification.
However, in case the present detail i
nformation shown by the treasurer is s
Illuminated - pbn,,Id ba n.taJ 4Lo4 u | G