Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-01-27
Cre,, Lack OF Efficiency
In Handling OF Nd.
Builder Assn. Shown
lcontinusd From age 4,

no means OF telling by the report. IHls
will probably be one Of the points
by the house and senate committees.
CnveB Several Months.
Tue aulitsof the Home Builders >as- !
ssoctation OF North Dakota by Bishop
Brissman & Co. Of st. Paul covered
the period from July L. 1919, to De-
ccmber 3, 1920, according to the gen
eral statement Of the company which
accompanies the report which has
now been submitted to the North Da- ,
kota house and senate n the state
board Of audit. !
The statement says in part:
lowing to the incomplete and de- !
7cient condition OF the records and h
limited time at u disposal, a COM
plete and comprehensive audit was
not possible.
"Thc examination was confined to
review and ~verification Of the cash
transac tions as hereby presented. :
prior to December, 1919. written
receipts for cash payments were not
issued at the time payments were re-
ceived, but receipts were written up
in duplicate in December, 1919, cover
ing such prior payments.
Loans Verified.
Loans from the Bank of North Da-
kota aggregating $227,00O were veri-
fed by comparison Withathe bank rec
ords and authorization In the minutes
Of the state industrial commission A
discrepancy appears between the
amount of the loan on November 20,
1920, of s125,o o as appears in the
records Of the bank and of the assoc
citation. and the minutes Of the indus
trial commission, which authorized
only $4,000. We were advised by
W. A. Anderson. secretary Of the
commission. that this was simply a
, clerical error in transcribing the min
utes and that $125, 900 was the correct
amount authorized.
Cash receipts in the sum Of $2.022,
including Sc deposited December 4,
1919, were not deposited in the bank
up to December 3, 1920. but were used
as cash funds from which duly en-
tered and vouchered disbursements
were made. This practice should be
discontinued. All cash received should
be converted into the bank and an
irnprest of petty cash fund established
In sufficient amount as desired.
Find No Invoices.
Gin Schedule No. 2 is presented a
list of checks issued for which no sup
porting invoices were found in the files
or produced for examination. and
representing a total disbursement of
S~57,aS5.72.
attention is called to the fact that
the manager of the Home Builders
association of North Dakota was au-
thcrized by the state industrial COM
mission at its meeting on April z.
1920. to employ such assistants and
install such Office system from time
to time as might be necessary and to
employ to that end experts conversant
with the installation. Of such system
as might be required, that on Deem
Der g. 1890, the installation of an
adequate system of accounting had
not been completed and the records
and accounts were yet in a n, incon-
plete and unsatisfactory condition:
In Schedule No. 8 is. presented a
list of buildings completed or in pro-
cess Of construction. together with To-
cation n name of party for whom
built. The list includes two homes in
the Fargo project upon which work
had not been commenced or Decem-
Der 3. 1920.
owing to the fact that no cost
system has been maintained, it was
impossible in the limited time at our
disposal to determine the cost of the
individual buildings constructed or in
process of construction. The total
disbursements for construction. pur-
poses as exhibited in the statement of
cash transactions was in. the sum of
$S~ll,11S.oI. .ra. tA'r+ = ..-Y.p.
!, inventory Taken. II: :
IAN inventory was taken of the ma
terial or hRnd at Fargo, Hazen. Grand
Forks, Mandan and Bismarck,
amounting to ~$SO,132.59. This in
ventory was taken under the super
vision of Carl Kositzky. state auditor,
and member of the board of auditors,
assisted by a representative of the
, Home Building association.
ION account Of the deficiency in the
records n files refeVred to, and the
: limited time at our disposal. no at
: tempt was, made to determine the
amount. of any outstanding accounts
or contracts payable.
with one exception. no contracts
were found in the files with indf
viduals for whom homes mad been OF
t were to be built, and we were in,
: formed by r. B., Blakemore. manager
that the form for such contracts hat
e not yet been decided upon. The con.
tract Of record was with John B
s Adams Of Bismarck. dated September
! 13. 1919, in which the value of thu
home. was specified at $1,000.
The act Of the legislature Of NORTH
Dakota establishing the Home Build
ers' association provides for the for
$ nation of home buyers leagues con
5 5 sisting Of ten or more depositors IL