Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-03-28
$52s,336.34
BY Rule of Thumb.

10y 4SVAO VI AnuubOs .
The method of establishing the cost
of the houses, which was done by the
Equitable Audit company, is shown in
the report. Taking the home OF j. N.
Hagan, former. commissioner OF agri-
culture and labor as an example, the
report shows that the total cost Of
items traceable to the particular job
amounted to S5,970.01. Showing how
the deficient the system was the re-
for lumber and $3.50 for hardware.
To obtain the total cost of this house,
as well as others. the audit company
took the amount OF money it could
not account for. about 100000 in all,
and applied it to the cost Of the var1-
GUS houses proportionately.
There was considerable loss in the
disposition of materials left on hand
after the home building association
collapsed last summer, it 10 shown.
There remains, however, $~15,356.74
worth Of materials. on hand.
Showing how contractors were paid
more money than was shown due by
contracts on hand the audit report
cites the following instances:
Baker Heating n Plumbing Co.,
contracts found. in amount of $13,-
209.00. Total payments to- company,
$14,919.11.
H. A. Thompson Plumbing and
Heating company contracts amounted
to ~$7,269.0O. Payments made totalled
$10.4os.63
No Contracts Made.
The audit report confirms previous
statements to the effect that the Home
Building association obtained no con-
tracts with the persons for whom
| homes were built. Commenting upon
the bookkeeping system installed by
the association the report says that
1.-THE only records and information
easily accessible to us referred to was
limited to one pocket memorandum
book carried by Mr.. Blakemore, con-
tanning q partial list of checks is-
sued; q cash book partially recording
receipts, checks issued and deposits
made; and check stubs, cancelled
checks, bank statements. and an in.
complete file Of original vouchers and
invoices"
Further the report says: /
I'VE also repeat u comments IL
said report that there was no date
memoranda. or records covering thu
cost of the individual houses, severa
Of which were completed n occu,
pied and h remainder under con
struction. There were no supporting
lrecords covering the purchase, dis
- ANVIL ! Vo1IkoL ~ SSllSAo Va III
y material and supplies. There were NJ
original records, of the labor cost!
other than the payments made there
from. With one exception, there wer,
! amounts to be paid for the various
=. buildings, OF by whom or when. No
>, evensthe form Of such contract hat
! yet been determined.
N conveyances to the owners o.
corresponding mortgages, as provided
by h act, were executed and tn,
title to the properties apparently re
manned In the state, exempting then
from taxation.
Records Were Worthless.
upon he present examination w
found the journals as written up ha,
very little explanation of the entire
made therein. The supporting dat:
and explanations Of the entries wer
in the form of vouchers; numerou
vouchers were entered correcting
former entry and again a third entr,
and voucher was entered to correct
former correcting entry.
1--WE also found n large bundle o
journal and ledger sheets which ha'
beef fully written up and discarded
and the records were apparently en-
tirely rewritten.
The association, after having thi
elaborate system installed and write
up by the Equitable. Audit Co. at
cost Of $25,741.68 were Enabled t
determine the construction costs O
the buildings erected. and the distri
button of materials, according to athei
own report, was made arbitrarily.
I'm our examination the record
written up were Of very little value
as we were obliged to depend Nentirel
nnOn tho ORIGINAL invoicos and ofhe