Evening star., 1932-02-27
AUDIT OF SCHOOL
FUNDS STARTED IN
ARLINGTON COUNTY
Bonding Company Promises
to Pay Any Amount Of
Deficit Found.
COUNTY is IN NEED
OF IMMEDIATE FUNDS
Offer by Two Alexandra Banks
Likely to Be Accepted
by Officials.
By a staff Correspondent of The Star.

BY a stan correspondent OF Inc StdT
ARLINGTON COUNTY c % u r 7
HOUSE, February 27.-An audit of the
Arlington County school fund was
started today upon arrival at the Ar
lington County Court House of another
State accountant who augmented the
staff of four examiners who two days
ago began an investigation OF the ac-
counts of I, wade Ball. former county
treasurer.
The school fund audit is the first of
a series of independent auditS to be
made of the accounts of all county
officers at the request Of Roy S. Braden,
county manager The school fund is
dispersed by the school beard through
warrants issued on the treasurer's office.
B. L. Hall of the office of the State
Auditor of Public Funds will handle
the school fund audit.
Aside from the independent audit of
accounts of county officers, Braden re-
vealed his is considering the adoption
of a new bookkeeping system for county
activities. A change was recommended
by R. B. Jordan, who is directing the
accountants examining Balls books.
The Fidelity & Deposit Co. Of Balti-
more, which bonded Ball for 100000,
today assured Harry A. Fellows, chair
man of the Arlington County Board, that
it would make immediate payment Of any
deficit in the Arlington County funds
if the reported shortage of $275,000 Is
established by the audit.
Ball resigned suddenly yesterday at
the request he said, of the bonding
company and in the interest and
sterilization Of the county's credit.
Charles T. Jesse, prominent Arlington
County political leader, was appointed
to fill his unexpired term, which ends
In December, 1885.
The promise of the bonding company
was made by one of its representatives,
who conferred with Fellows regarding
the status of the county's finances,
which has become serious as result
of the alleged shortage in Balls ac-
counts.
Need Immediate Funds.
THE assurance of the bonding COM
pany that it will make good any short
age that may be shown by the audit
Immediately after its completion" Fel-
lows said, "is comforting. But am ad-
vised the audit will not be finished for
month or six weeks and the county
is in need of immediate funds. The
raising of these funds Is an emergency
and the immediate problem OF the
board"
Fellows announced the board would
hold a special session at 7:30 o'clock to-
night in the Arlington County Court
House to consider offers of financial
aid from two Alexandria banks. The
Citizens National Bank and the Alex
andria National Bank. according to
Fellows, have volunteered to advance
100000 to the county at an interest
rate of 8 per cent.
Offer Likely TO Be Accepted
In all likelihood, Fellows said, the
offers would be accepted. Otherwise it
would be necessary to close the public
schools Tuesday and curtail other
county activities at the same time.
Fellows said $22, 900 is needed imme-
diately to meet payment on school
bends and coupons already overdue,
S24 1000 to cover outstanding warrants,
$4,000 to pay school teachers and
other school employees, $4,000 to pay
the salaries of other county employees
and the same amount for the purchase
of necessary materials.
If SlO0, 900 is borrowed, Fellows point
ed out, all county activities can be
continued without interruption until
March Is. With an additional $4,000
or $4,000, he said, the county would
not have to worry about its finances
until April /. BY that time, he be-
Iieves. the audit will be completed and
il any shortage occurred in the ac-
counts of Ball the bonding company
will come to the county'S rescue, thereby
making the borrowing Of any addltlonal
sum unnecessary
Upheaval Will Be Costly.
.-..o,,o, Il, tho co,Intv's financial
affairs however, Fellows said, is TO
nrove costly. despite the assurance that
the bonding company will make up any
Shortage. In the first place, he ex-
nIained the county will be required 10
nav interest on any money II oorroWS
and in addition 1t must bear the cost
of the audit of Balls books by State
officers. The probable cost OF the auolt,
Fellows declared, it not known 10 Che
board at this time.
Although Jesse has accepted the ap-
nointment as Balls successor, he does
not take Office until some time next
week County officials explained ne
cannot take the oath OF ONCE untll
he furnishes bond of 100000, the
amount fixed by the court.
Jesse Applies for Bond.
Jesse applied for bond late yesterday
panv but several days will elapse, he
believes before his application is acted
upon. In the meantime William H
Duncan. county clerk, will act as treas
urer. although he does not plan 70
transact any official business in the
treasurer's Office.
Ball went out of the Office where ne
served for "a years as treasurer With
out offering any explanation whatever
of the alleged discrepancy in his ac-
counts, but promising to issue a state
ment when the audit is completed.
Friends predicted, however, that when
Ball does make his statement it will