Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-02-01


men were authorized to borrow as
needed on the note and credit of the
city the sum of $4,000 for current ex-
penses. in anticipation of the collec-
ton Of taxes. Residents of Oak street
petitioned for light to be placed at
the junction of Oak and Water
streets. Thepetition was placed on
file. A communication was received
from the Holman Audit Co., reading
as follows:
January 31st 1921.
To the Commissioners of the City of
Gardiner,
Gardiner. Maine.
Gentlemen
We were retained by your Honora-
BILE Mayor to make the regular annual
audit of your city for the fiscal year
ending in January, 1921.
We have put in a week on the books
and accounts and before proceeding
further with the work we desire to
call to your attention q few matters
in an effort to conserve the city's
money and our own time.
The matters tsated below we are
not able to verify without making
detailed audit of the years of 1917
1918 and 1919, and in order that the
city may not be put to any expense
by us for. the audits made by Mr..
GRAHAM, we are suggesting that Your
Honorable Body request Mr.. GRAHAM
to explain the following matters
The auditing of the books of the
City Auditor of any municipality is
only a waste of time. The books of
the City Treasurer are the books to
be audited We find no evidence that
the books of your City Treasurer have
been audited since the end of1916 If,
however, Mr.. GRAHAM has audited the
City Treasurer's books for 1917-191S
and 1919 he can readily supply you
with So satisfactory evidence to that eff
feet, which evidence. however. is not
apparent on the checks, vouchers or
cash books of the City Treasurer.
From Jan. 1st. 1917 to JAM list, 1920
there has been dropped from I'm EX-
pended Balances" s65o0 This figure
has been buried in Surplus. an ac-
count that is merely balancing ac-
count, and thus entirely lost sight Of.
When you consider that the Unex-
pended Balances of any city represen.
the available assets for running of the
city and unless they are exhibited to
thetaXpayer he can form an adequate
idea of the commitment necessary for
operating expenses, and, in conse-
quence, cannot know whether Ne is
being assessed more than necessary
amount in each year, you will readily
apprehend the danger of burying I'm
Expendede Balances in n SO called
Surplus figure. the analysis of which
is never exhibited tothe taxpayer
We question very much If the city
officials have any legal RICH. to allow
money raised for the purpose of con-
Quoting the operations of the city to
become lost to the view of the tax
payer
In 1918 there was taken out of over
lay account and credited to surplus the
amount of s2019.60. In consequence
this amount became lost to view of
the taxpayer and should be restored
to overlay account. AS result the city
report for the year ending Dec. 31st,
1919, showed: Overlay account sS496.-
03 and uncxpended balances $1725.0S.
while as a matter of fact the oYerlay'
account should have shown as s10.515.-
SO and the unexpended balances should
have shown approximately $500.
On July Ia, 1919, the following order
was passed: THAT the sum of So
be added to the appropriation bill for
1919 to pay outstanding temporary
loans" Temporary loans unless made
for some specific purpose are usually
made in anticipation of the tax COL
lections and have already been includ-
ed in the real appropriation bill for
the year. You will thus note that in
1919 the taxpayer was assessed for
the amount necessary for the opera
tions of the city and an additional as
sessment of $4,000, Which was only
used to increase the overlap account
TOR 1919.
The net result of the restora ton
of the overlap and unexpended bal
ances accounts to their proper values
would result in an overlay and unex.
pended balance account Jan. 1st. 1920,
of, in round numbers, $1S,700 and the
total uncollected taxes as at that same
date were S634415.
The above suggestions are not made
to you in any spirit of criticism, but
we believe firmly that these matters
should be cleared up and adjusted prior
to the audit for the 1920 work.
THE HOLMAN AUDIT CO..
by ], Ernest Holman, C..P. A.
Following the reading of the above
it was voted to. request Mr.. GRAHAM
to confer with the Holman Audit Co.
in reference to the matter.