Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-08-24

of service. materials and supplies con-
sumed or required by the Commonwealth
for the efficient operation thereof.
"The lack of accounting control and
audit of the figures and facts used In
the preparation Of financial plan for
an ensuing period.
"The lack of unit costs Of operating
the various departments and the func-
tions thereof for prior periods.
1.-THE lack Of proper certiacation Of
documents supporting the disbursement
Of public funds, by those responsible
for the truth or falsity Of the facts GER
titled to.
"The lack Of the basic element Of any
financial scheme, namely, a statement
Of the current condition Of the Com
monwcalth showing Its outstanding
liabilities aud appropriation encum-
brances and the assets on hand and
estimated revenues, together with the
balance representing deficit or surplus,
as the case may be.
"Without budget system, the re-
sponsibility for the state Of affairs now
existing in the Commonwealth, viz, up
propriations far in excess OF revenue
with a constantly growing deficit, can
neither be definitely fixed on the legis-
lature nor on any one man or group OF
men, but is largely due to the faulty
and obsolete financial system under
which the State has for many years been
operating.
Favors Budget System
"If a budget system Is TO operate
effectively and If one is adopted by the
| Legislature Of Pennsylvania, much OF
the weakness Of the Commonwealth q
financial plan will no doubt in time be
| remedied. We are of the opinion that
the Commonwealth of Pennsylvania Is
| in need Of such a reform, and particu-
larly needs the control that budget
system from an accounting and admin :
| istrative point of view will furnish.
"A statement of the appropriations
| in lump sums. such as heretofore passed
by tho Legislature. can hardly be styled
a budget. particularly when unsup-
ported by data such as unit or func-
| tionnl costs necessary for the proper
determination Of the amount to be ap-
propriated for a specific purpose.
"In addition, budget system will
permit the preparation OF a periodic
statement showing the Commonwealth 8
| financial condition.
SIN a properly operated budget sys-
tenn, the financial plan becomes OF
prime interest, each item is passed upon
separately and must be supported by
definite purpose md carry its own
merits. The whole plan is go designed
and set forth that It is easily under.
standablc by the public and should
show where the legislators intend TO
collect the funds from which to meet
the outlay which they are about TO ap.
prove in the form of an appropriation.
The data Is prepared before the Lcgis-
lature meets and is put out in pub
liShed form. 80 that the public can he
taken into the confidence of the lcgis-
lators. and as the financial program is
formed during the session Of the Lcgis-
lature. the public Is also aware of its
development.
80 The following Is a quotation from
IN introduction by Chief Justice Will
liam Howard Taft to the book enti.
tlcd The Budget and Responsible Gov
eminent:
The great problem OF popular gov
ernment on its practical side is to ere
ate machinery by which those for whom
| government Is carried on. and who
should control and direct the govern :
ment In large way. shall be advised
of the facts. and upon those facts, cor =
rectly interpreted. shall exercise dis
criminating criticisms and ultimate de-
cisions.