Evening star., 1923-10-07
BIZ WILL r. KENNEDY,

r NCLE SAM. authough he>. Is
running the biggest workshop
In the world, although he Is
spending about $3.500. 900, 900 =
year. although he/ owns some hun
dreds Of millions in real and
other fixed property. does not know
now--nor has he known since the
Declaration of Independence-5ust
what he. Is worth. That Is because
he has never had a real balance
sheet-a statement of assets. Habil-
tiles and net worth, which Is SC
essential to private business and
without which no concern would
survive.
However. this condition is being
changed and steps are now being
taken whereby consolidated ball
ance sheet for the federal govern
ment may be presented ito Congress
and for the information Of the pub
lic--the taxpayerst ,.y3-,, :,
The office Of the controller gem
eral is now actively engaged in the
study of n central Accounting syste m
and is, also studying a departmental
fund and proprietary. system of ac-
counts. In fact, such a system has
been devised and 1t Is now being in.
stalled in the departments, with the
hope that within the next two years
all of the departments Of the govern
ment will be keeping their accounts
uniformly. =.
Will Reveal all Costs.
After this installation isl,effected It
will then be possible to prepare a
consolidated balance sheet for the
government. supported byystatefnents
showing: (a) The cost off the organi-
zation units Of the e.goverpment:. (b)
the cost of operations, by activities,
and (c) the cost of operations clsssi-
fed according TO character of: ex-
penditures. This latter: will show
how much goes for CURRENT. &xpendi-
lures, how much goes for fixed
charges. how much goes for acquisi-
ton OF property. how much goes for
payment of debt and how much is
expended for capital outiays for
rights and obligations-that is. those
expenditures of the government made
for investments. treaty obligations,
repayments of deposits. refunds. re-
WarQS ana lndemnttfeS.
II Is OF interest to note that IL is
now possible to prepare a statement
of costs by character and objects of
expenditure, because the controller
general, under date of May IL. 1922,
issued his Bulletin No. /, promulgat-
ing" the detail c1assifications of the
segregations to be made of the ex-
penditures of money authorized un-
der each of the appropriation acts.
This classification has been in effect
one full fiscal year and the bureau of
the budget has issued a. circular
letter calling upon the departments
and independently establishments for
this MISUNDERSTANDING forward to
the inclusion of f.such statement in the
federal budgetf>for the fiscal year
1925. =, ~;
To assist the controller general
In evaluating the real and other
fixed property of the United States,
Col. III. C. Smither, chief >co -ordina tor
of the bureau OF the budget, has a
committee making an inventory and
vaiueing those properties. After this
has been completed for all the de-
partments Of the government, IT. will
be possible for them to include these
inventories, In the departmental bal
ance sheets, and by the consolidation
of the balance sheets Of all Of the
departments. the public will have a
picture exhibiting the value of the
federal governments fixed property.
Complete In Two Years.
Il will not be possible. however, TO
present the full picture until the uni
form system of accounting has been
installed in all Of the bureaus and
services OF the government. Any one
familiar with our national organiza-
ton readily will appreciate that this