Evening star., 1933-03-27
new ACCOUNTING
METHODS URGED
Dr.. Seidemann Suggests
Ways of Improving Records
of U. S. Expenses.

DR.. Henry P. Seldemann, OF the In
stitute Of Governmental Accounting
and the Brook!ngs Institute, one Of the
foremost American authorities on gov
ernmentaI and fiscal relations through
accounting, gave q most interesting and
practical talk on Problems OF Govern
ment Accounting" at the monthly meet
ing Of the Washington Chapter Of the
National Association Of Cost Account
ants.
With . practical experience dating
back to the period before the Federal
Government had budget, when the
under another name, DR.. Seidemann
quickly proved that simple accounting
shows duplication Of expense. These,
when expressed in costs per unit of
product or service place before man.
agement the information that leads the
way for the elimination OF certain
activities and the reduction of expendl-
lures This phase Of accounting today
takes on . new significance when taxes
have to Be lowered.
New Methods Adopted.
The urgent necessity Of newer
use Of Government accounting and the
need of accountants with broader
view of changing functions OF govern
ments was explained by DR.. Seidemann.
He also suggested that the results OF
such accounting studies Of govern
mental costs should be and IN many
places have been translated into leg1s-
iatton that will modernize and liberalize
0scal administration of our cities,
States and other political units
From the viewpoint Of the cost ac-
eountAnt the grouping of expenses in
terne of work done and the quantity
and quality Of such effort was enlight-
Oning.
It Is quite easy to move from the
grouping OF similar services to classl-
dcation Of receipts and expenses Wnlcn
when defined makes comparisons worth
while These comparisons quietly snow
defects TO be eliminated or adjusted
q veil as efficiency to be commenced
81. Sefdemann listed the following as
= modern grouping of governmental ac-
cotntang: G) funds, CD organization
units, (3) functions and activities, 90
objects Of expenditures and 60 char
actor and sources Of revenue.
The speaker stated that III the con-
kolifng authority, the Chief Executive,
q really to perform his function OF d.
rection, supervision and control, ana
the administrator his function OF seeing
that work undertaken Is prosecuted
EFFECTIVELY. it Is essential LnaC tney
shall have before them the statements
showing expenditures and receipts clas-
sified from each Of the six standpointS.
Changes Recommended.
Since governmental accounting Is
essentially based on the acts OF State
Legislatures and Congress, DR.. Seide-
mann stressed the need of constructive
criticism Of organization structure and
responsibility of personnel. He said
that the Federal Government has
not the simple kind of financial state
ments that would give either the
President or Congress all the financial
data that could give a true picture OF
the Government finances-due 10 the
lick Of a central control system of ac
counts. He recommended that all gen.
eral accounting and reporting functions
be placed under the President. He
praised the passing OF the economy act.
In an open forum discussion was
participated in BY Messrs. James p
G-ice, formerly president Of the Dis
trict Institute Of Certified Public Ac-
countants; Howard G. Beck Of H. c.
Beck " Co., Inc: Harold c. Anderson
of Maxwell Mitchell Il Co. and ].
Darlington Denit Of the General Ac-
counting Office
The next meeting will be held We'd
nesday April 10. when DR.. A. Manuel
Fox, chief economist, United States
Tariff Board, will discuss Joint and
By-Pro6uct Costs