The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-04-04

Over $4,000 of bills chargeable to
the 1923 city government appropria-
tons were paid and charged to the
appropriations for 1924 during Sep
tember alone They included the
puyrolls for the latter part Of Aug
ust 1924, and numerous liabilities in
Cured in that month and which
should have come out Of the apprO-
priation for 1923. Worse still, n
large number Of the bills were for
goods or services rendered in all the
months preceding the new fiscal
year which began September first.
even as far back as March 1923, or
six months prior to the close of the
fiscal year. This practice not only
prevents an accurate statement of
the operating expenses of the city
government for any given period, but
nullifies the value of budgetary
system. Unless the expenses are
charged to the year and the funds for
which an appropriation is made Il
budget serves no real purpose. for
its primary and sole reason for ex-
istence is to fix definite and clear
limit of expenditures.
A Salutary Check
Cities which live within their APP
preparations have set of accounts
known as fund accounts" technical
= ly, and popularity as appropriation
accounts In these accounts. each
executive officer is given credit for
his appropriation and debted with
contingent liabilities, i. e. pay-rolls
and estimated cost OF the goods be-
fore the order is filled. This sys-
TEN prevents spending more than is
allowed him. Perhaps, Bismarck
could dispense with the thorough
systems Of the larger cities, but if
a proper form for ordering goods,
either by small purchases or through
contracts, should be installed and
pass through the hands of the city
auditor, so that he might know what
encumbrances or contingent liablll.
ties are chargeable to each fund.
salutary check against exceeding the
budget appropriation would be pro-
v!ded This should be done.
Nv Balance Sheet
The other accounts maintained by
the city at present are little better
than statement of cash receipts
and cash payments, or equal to
good cash register. The city has
never produced a balance sheet to
show what it owns and what it
owes; nor a general account showing
accruals or revenue and liabilities.
In half hearted way, it has set up
accounts to prove what sums are due
it from the county treasurer for
taxes levied and payments made, but
these are not set up by years to
show what payments are made as
current taxes and what payments as
delinquent taxes and how much for
penalties and interest on such delin-
quent taxes for the year in which
the tax was levied.
At some time, the city must take
loss on such delinquent taxes. and
is now In no position to learn what
that loss is and so close the account
Another criticism which might be
IN the arrangement of the accounts
as expense or operation cost, main
tenance or requirements and repairs.
and finally outlay or enlargement of
the plant. Again, there is no uni
formity of the subsidiary accounts
under each of these classfications to
show just what was purchased with
the expenditure, such as salaries,
contractual services, supplies etc.
though a strict classification may not
be entirely desirable. Finally, no
attempt is made to provide stores
and continent accounts to be later
verified by an inventory. Also. too
many items are charged to 'miscel.