Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1928-11-30
Friday Morning .Novem Der 80. 1928.
Shortage In MaryIand State Roads
Funds.

A total of $376,l3S.77 has been stolen
from the funds Of the State Roads Com
mission during the period from October /,
1920, to March 81, 1928. according to an
audit made public Monday last by Gov
ernor Richie.
The audit, which was made by the firm Of
Haskins & Sons. revealed that the fraudu-
lent methods Of stealing varied from pay
ment Of illeeitimste bills. irregular dis
bursements on labor payrolls, salary
advances and sundry other illegal trans
actions.
The special committee. in making its
recommendations for a reorganization OF
the commissions financial affairs. asserted
that "wide-awake and competent auditor
In the Office Of the State Roads Commission
should have detected the shortage.
at does not seem possible to prevent all
stealing by dishonest employees. but such
peculations cannot be repeated over a
period of months or years without being
discovered by competent auditor or sensed
by well-sdvised management"
Pointing to the large amounts expended
by the commission TO carry on its work.
the committees report explained the sys-
TEN under which the money is handled by
the commission.
THE cash in the hands Of the COM
mission is comprised in two funds -
A general account, subject only to the
check Of the chairman, and a revolving. or
'paymaster's fund In this latter fund
$4,000 originally was deposited. from
which all salaries. wages and bills for
miscellaneous supplies and materials are
paid for by check, signed by the paymaster
on vouchers and signed by the payroll
clerk, purchasing agent and chief Of divis-
ion. and approved by the auditor Of the
commission.
las this fund is reduced by such dis
bursements, the auditor Of the commission
submits to the chairman check for his
signature for the amount necessary to
reimburse the fund. so that the total OF
$4,000 is maintained
THE safeguards thus provided for dis
bursting these funds and in line with Gus
tomary business practice. if carried out
by competent and honest men, would have
been sufficient; nevertheless. a closer
familiarity with the disbursements, through
the revolving fund. on the part Of the
commission and periodical review of the
methods Of the auditor in checking the
same. would have prevented the long con-
tinued practices resulting in the losses
enumerated.
The State Roads Commission is COM
posed Of three members. The chairman
receives a salary. the others serve without
compensation. The management Of the
business, including the purchases Of sup
plies and equipment. supervision and di-
rection Of the Uffice forces and control Of
the finances, have been left in the hands
Of the chairman.
while the two members of the COM
mission serving without pay were not
competent to pass on engineering problems,
nor expected to be, they accepted the re-
sponsibility imposed on them by law. and
they were duty bound. in common with
the chairman. to see that expenditures
were lawfully authorized. and that the
system in use for safeguarding the funds
Of the commission was adequately super
vised. which, in our opinion. was not
done"
Commenting on the investigation COM
mittees recommendations. Gov. Richie
said:
Il want to study the investigating COM
mittee's report carefully before announcing
my position on their recommendations.
THE thought have in mind Is to estab-
lish a system in the Comptrollers Office by
which all road money will be held in the
State treasury and by which. to the extent
that is practicable. all vouchers for road
work will be paid by the State Treasurer
direct"