Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-01-26

mill officesataGrand Forks.
- We, inquired for these consignment
recordssat the office OF the associass
ton at Fargo, Mr.. McGovern's ~secres
tary, Mrs. Dodds,. informed us that
Mr.. McGOvern was absent. from the
city at the time and in regard to- on-
;signn1ent sales records, hat no. such
records were at the Fargo office but
that weekly reports were made. by the
,consignees tosthe office at Drake or
to the Industrial ommission office at
Bismarck.
MRS. Dodds also informed us that
the bookkeeping records at the Fargo
office had been turned over to the
Equitable Audit company for audit
the latter part of the preceding month
and to the best Of, her knowledge,
Records Locked. Up. 5
We next inquired Of Mr.. Darling,
n representative of the said EQuit-
able Audit Co... then at Bismarck X
he knew where these. records were and
were advised by him that part Of them
were in a suitcase Of his locked up at
Fargo, and that the remainder in his
possession at Bismarck; that the rec
ords were in a confused condition and
he. had been engaged in endeavoring
to straighten them out, when he wa
called away from Fargo. We asked II
1t would be possible to get an4order
from him for the records at Fargo
and were informed that nobody. but
himself could get at them, /,
I'VE next inquired Of the manager
of the Consumers United Stores COM
pany at Fargo, to whom we were re-
ferred by Mrs. Dodds. The reason for
this call was that this company, by
the records at the Drake mill, repre-
scented the greater portion OF the con-
signments, and who it was considered
possible, might be able and willing to
furnish US with desired information
and verif1cation OF the. conagnmenta
to this company. He advised us that
reports were sent to the mill At Drake
with every remittance as made. We
asked If we might receive or make
copies Of such reports from his rec
ords and he advised us that. he had
no authority to give Us such informa-
ton.
None In Grand Forks.
We next inquired of Mr.. Paulson,
manager of the mill under construc-
ton at Grand Forks If any records of
CONSIGNMENT sales were at his Office
and he informal us that there were
none.
"It will be apparent that these re-
ports of consignment sales abso-
lutely necessary for the production of
ton and earnings. The records at
Drake. as produced and examined.
reflected the remittance, only in cash
amounts. Such aconsignn1snts sales
reports would afford not only veriica-
ton of such oonsignments and remit
tances. but would supply the follow
ing necessary information not other
wise available: I.
Quantity of flour sold by con-
signees.
2-Resulting quantities Of flour on
audit.
3-Dates Of sale and corresponding
market prices. {
Amount OF freight and other
charges paid by consgnees and sur
charged the mill.
+ Information is Necessary.
Such information is necessary for
the the following analysis and veri-
fcations:
ACKNOWLEDGMENT by consgnee.
of quantities of -four received sold,
and on hand as Of date Of audit.
2-Comparison of authorization OF
sales, prices reported with current
market prices. t5z
3-Computation and %veriication Of
actual profits or losses to the mil
towering the consigned sales.
4-The asset valuation on balance
sheet Of unsold consigned products.
ION December 81. 1920. We were
advised by the secretary Of the Indus.
trial Commission that a proper. audi1
of the association requires . phyxtca,
inventory OF the mill products a
Drake and all consignment points and
that. no audit Ia worth OF the Mans
unless based on physical inventory.
Eve wish to make clear and en-.
plastic the fact that goods out or
consignment are not verified by phyGi.
cal inventories but BY examination o.
the records, supported by the &C.
ACKNOWLEDGMENT oflthe consignees.
Not only would lr be clearly i'm,
tpoesib1e to take the physical inven,
tory of all goods but on consignment
at a certain date at many and widel,
scattered stores of all possible con,
tsignees. but such q physical inventor,
would be v~alueless, not only w0uldssf
Eke impossible to identity the gttAnn1i
andsgquAntities represented IN yuci
tsongis ned Goods on nAnd..s but the1s
1Iwouldsb Be no smeans of detArmininl
fwhether such goods had not been 5of1
and remained undeatyefed, or the
Itent Of goods In transit IL my.
In the within report We h1Ve8cofi
Enned ourselves to presenting only tai,
transactions and information suhtSe
ITO v~eriAcations ~ M ana from the roc
lords available for examination.
I've regret that N / unable q
present ~ c0mptete and tolaprehen
i1fve re0Ort OF An4nciAay condition ~
|toperatin9 results due 20 the deActSn
g AZ ~ recofds available.
Given No Msip
II ~ ~ fftAAsJA