Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-08-24
State Budget Plan
Urged by Experts


y
a. high as 60, 900 accounts and for a
new system OF audit control.
Eight criticisms are made IN discus
sion Of this latter item. one being the
lack OF the basic element Of any fnan-
TEN Is declared faulty and obsolete
Experts Make Suggestions
In summarizing their findings. the
expert accountants said:
I'm this part of our report, as q re-
suit of our examination Of the books.
records and accounts Of the Treasury
Department and study Of the relations
which those records bear to the Audi
tor Generals Department, we make
certain specific recommendations, both
corrective and constructive. which in
our opinion viii promote greater eta
monwealth as q whole, but also the
fiscal officers responsible for the proper
collection and handling Of funds.
The method Of bookkeeping as now
followed in the Treasury Department
is neither in accordance with the best
accounting practice nor comparable to
! the modern methods now found in sev =
ernl OF the Municipalities in this Com =
monwealth.
"Ths system Of bookkeeping followed
has certain inherent faults and weak
nsssses, some of which can bes. be rem
! edied by statutory provisions, but most
Of which can be effected without the aid
Of the Legislature.
The matters to be remedied fall into
at least two classes:
"First-Interpal Check.--At present
tho records Of the Treasury Department
are not controlled or subject to auto
matte audit daily, weekly or for suv
other definite period. except that of a
mathematical check on official receipts
| issued.
"Second-Audit Control-The control
over the records of the Treasury De :
pnrtment that the Auditor General
should have from an accounting point
of view is lacking. particularly with
respect 70 the cash receipts Of the Com :
monwealth.
Internal Cheek brief description
I OF the method now followed in record :
Ing cash receipts Is as follows: For all
funds received an official receipt Is is
sued either on the day received or pre- =
| slmably within a day or TWO follow
Ing. depending upon the volume of work
going through the office. Not until sn
receipts are Issued are the funds SO re >
ce4ved considered As actually having
been received. Between the date OF
actual receipt and the date Of the is
s"ance OF said ofic!al receipt. no definite
control thereof has been maintained or
oinclai record kept. Apparently the in.
formation with respect to such unre.
corded receipts IS within the knowledee
OF but ono or possibly two persons.
Ihe Auditor General has been nd
vised only as 70 the amount OF cf1cial
receipts Issued and countersigned bv
his represe entattve, while at timer a
large amount ot unrecorded receipts
has been on hand.
No Adequate Record Kept
mo records have been kept to show
estimates as TO funds to be received
from the various county officers and
the approximate date, as we'll az any
other revenue which could have been
estimated or accrued in advance of
receipt.
We believe the suggested change,
can be applied TO the present method
OF bookkeeping in the Treasury Depart.
ment without much difficulty.
First. All funds received in the
Treasury Department shall immediately
be registered and given registry num-
Der. This record can be very simple
and brief, the purpose Of which will
be to record in it Immediately as re-
ceived, each group or item for which n
receipt Is 10 be issued, and from there
on serve as control Of the same.
From this time until the official receipt
Is issued the registry number will be
the designation by which it can be
traced The handling OF the registers
should be the function of n person who
does not sign the official receipts or de-
post tho funds. The registry number
should also be the same number as tho
official receipt will bear.
Second. With respect 10 tho official
receipts, we recommend the discontin-
uance OF the present form, because,
after Issuance no other record thereof
Is kept except stub, which may or
may not be self explanatory. An official
receipt should be so designed as to make
duplication therof very difficult. They
should, OF course, be numbered in Sc
Qucncc, said number to be printed by
the engravers. Every receipt should
have cOunterfOil from which the orig
inal must be detached and also tripll-
cate. thus doing away with the stubs.
The receipt should be SO designed
as 10 make II possible for the filling in
thereof on the pin point typewriter now
used for the issuance of checks. In addi-
tion 10 this, the form could be provided
with another safeguard such as Il pro-
tective device, by which the amount for
which the receipt is issued can be stamp
ed with machine, making IL absolutely
unalterable. The original receipt would
20 10 the payee. the duplicate trans
mitted 70 the Auditor General and the