Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-19
M'CARL CRITICIZES
AUDITING METHODS
|N3L0CAL OFFICES
Controller General Declares
Records Kept of District
Finances Inadequate.
SHORTAGES REVEALED
IN MUNICIPAL COURT
Report Says Recommended Changes
Adopted by Only Two
Departments.

Criticism of accounting methods in
the District Auditors Office, the Dis
bursting Office and Municipal Court are
contained the the annual report OF
Controller General j. Raymond McCarI'
The criticism is most severe as 70 Ille
Municipal Court, as to which the re-
mort states that there is an utter I'M
practicability of effecting necessary
checks and balances between the &C
counts Of depositors and cash recoroS
maintained by the clerk" One snort
age in the accounts, revealed by an m
vestieation. was made up, McCarl as
serts in his report, but second snort
age of 1855 IS, involving deposits IN
,1ecre than 600 cases. existed at the
time the report was written (June 81
1890. -. 49,
Further complaint is made that the
disbursing Office does not function as
an INDEPENDENT entity, but as an ao-
junct to the auditors office, ana tnat
the auditors Office has basic accounting
records which provide mo means OF
centralized control over the revenues OF
the District government.
improvements Recommended.
Numerous recommendations have been
made to the District Commissioners, the
report states, covering improvements IN
accounting methods in the assessors
office, the auditors office, the Board
OF Public Welfare the collectors office,
the disbursing Office, the License
Bureau, the Municipal and Police Courts
and the Water Department, but the
improved systems have been installed
only in the Police Court and the per-
sonal tax division Of the assessors once.
On the Municipal Court situation the
report sets cut:
Investigation disclosed that the &C
counts Of the Municipal Court were
being so kept as not to be susceptible
to balance, and, Notwithstanding pc
riodic administrative auditS, an exam
nation of the record disclosed many
discrepancies. Unused balances of de-
posts had not been covered into the
general fund Of the District Of Columbia
for more than Is years. Between cash
records of the clerk and bank state
ments there existed an unaccounted for
difference of more than 81 200. To cor
rect this the General Accounting Of
fee, in cooperation with the auditor
of the District of Columbia, undertook
to install suitable accounting system,
but recent reports indicate that the &C
counting record is not being currently
maintained.
Proper System Needed.
"There is practical need for a proper
accounting system to record the trans
actions Of the Municipal Court, and this
need Is evidenced by the discovery OF
shortage, the amount of which was re-
stored, representing differences noted In
4O7 cases, and the existence at this time
of an additional shortage OF S466.35
represented by differences in more than
900 cases. Also there Is an utter I'M
1fF IF aFaPfinO necessary
checks and balances between the &C
counts Of depositors and the cash rec
ordS maintained by the clerk. And fur
Their, the docket record is insufficient as
an aid in depositing promptly to the
credit Of the general fund Of the District
Of Columbia the amount due to 1t under
the act Of February II, 1909
AS to the auditors Office the report
reads:
THE basic accounting records of the
District Of Columbia, viz, those main
tanned in the Office Of the auditor, pro-
vide no means of centralized control
over the revenues Of the District gov
eminent. The present centralized
record comprises merely set OF memo
randum accounts that are built up
in practically all cases from reports
Of collections by the collector OF taxes
and therefore do not reflect the true
status of receivables accruing through
the activities Of the various depart
ments. While the records Of the diff
ferent departments are in somewhat
greater detail than those of the audi
tor, the routine for recording and re-
porting the various transactions affords
no means for a systematic audit and
the establishment periodically Of proper
Yeconciliations. This is particularly
noted In the records compiled on an
nual tax levies special assessments,
water rents, licenses and permits The
methods used TO check receipts do not
proceed from the source through which
the best type Of proof would ordi-
narily be expected.
Outlived Usefulness.
Many of the practices that are now
being followed have outlived their use
fulness and in recommendations sub
rnitted TO the Commissioners sugges-
lions have been made for notifications
Of systems and procedures with view
not only to improving the general &C
counting structure, but for effecting
substantial economies as well.
TOO much stress cannot be placed
upon the imperative need for adequate
accounting systems, economically con-
Quoted, and it is earnestly hoped that
means will be found 10 require prompt
and specific action upon the recon-
mendations of this Office pursuant of
the duty imposed by the budget and
accounting act"