The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1923-08-21
COMPLETE AUDIT
HANGS JESTER
SHORTAGE HIGH
Amount Missing Can
not be Definitely De-
termined; the Total at
Least $4,000.

John Jester, Jr., former treasurer of
the Pioneer Irrigation district, faces
a certain shortage of district funds in
his cutody of $4,000 and the total
may reach $4,000. the difference be-
ing regarded as a contingent liabil-
hy." according 20 an audit completed
Monday by Howard Smell and filed
with Fred Evans. secretary of the dis
trict. 1t will be formally presented to
the board of directors of the district
this evening at a meeting which was
called to consider other matters with
reference to state taxes.
Because of the absence or records
stolen from the Office of the district
July Fl when various books of the
district, checks and other records dis
appeared in connection with a small
burglary. there is no method of deter
mining the exact shortage. 1t is be-
cause of the break in records here that
the difference between $4,000 and $780,
900 is designated as a contingent La
bility. If all obligations owed by the
district during the period for which
only partial records are available, the
shortage will be $4,000. Mr.. Smell
states in the audit, however, that based
upon past experience in such matters,
probably $1,000 of these obligations
remain to be paid. Whether the total
exceed this amount is merely corjec-
tural.
As treasurer of the Pioneer Irriga-
ton district. Mr.. Jester was under a
bond of $35,000 with the National
Surety company of New York. 1t is
believed that the board OF directors OF
the district will demand from the
bonding company the $4,000 shortage
which the audit exposes with the un-
derstanding that payment of this
amount will not liberate the company
from additional claims which may be
established.
Aside from the items of twice-paid l
bond coupons, aggregating a shortage
which the audit places at $3,741.2s. Mr.. '
Smell in his report made no effort to S
trace the method whereby additional {
shortages occurred. 1t is understood, r
however, that the records of the re- c
eeipts at the treasurer's Office and the e
bank deposits correspond and that op- a
erations leading to shortages followed (
original deposit in the bank of such {
checks and currency as were paid the
district Since district payments are {
made by warrant, it is believed that S
cash Withdrawals from the bank af- t
ford the only solution for shortages a
not accounted for by the double pay I
ment of interest coupons on bonds. OF t.
the latter, the report says: c
These excess payments were not
district obligations and the treasurer p
IS liable on his official bond for such g
payments" Ii
While Mr.. Jester stoutly maintains il
MS innocence, it is understood that he 81
'dmits some possible discrepancy in G
he coupon items. accounting for them II
on the basis of poor bookkeeping o
methods. Aside from an early stat Il
nent to the effect that all shortages o
hargeable to him would be made good ST
Mr.. Jester has made no comment on Il
he subject. He has given but little
ttention to the audit as il progressed. p
The audit includes the period from Ct
october, 1920, to July II, 1928, the nj
ates between which Mr.. Jester was 81
mploycd as treasurer of the district hi
Practically all of the shortages dis cr
ovcred by the audit resulted from op- cl
rations during recent months. No m
ember probably hit the high mark
'Nh total shortage of about $4,000.
From the audit, the following ex-
erpts are taken:
ash unaccountcd for by John nj
Jester, Jr.. as treasurer ....$2S, ,24S.lo h,
-scess credits taken by ]. ce
Jester, Jr., as treasurer. A.,
Tor payment of bond in =,
'erest coupons ...........-.....,-. 3,74l.Zs A;
III