The Wyandotte herald. (Wyandotte, Mich.) 1879-1943, 1942-08-07
AUDITORS MAKE
FIRST REPORT
ON SHORTAGE

Ernst x Ernst. the Detroit auditors
engaged to make an investigation 01
the books of John Il. McWnirter, sus-
pended WyandOtte city treasurer
made a preliminary report 10 the
Council at meeting Of that body Oh
Tuesday night.
The report covered cash TRANSACTIONS
cOnsummated in the office Of the CT!
treasurer from October /, 194l TO Jul!
II. 1912, and prior periods with re
spect TO certain types Of TRANSACTIONS
such examination said the report
indicates that certain revenues, par
ticularly those arising from the opera
ton of the city hospital and from de
linquent tax collections, have not been
properly accounted for, and that the
misapplica ton of funds has continued
at least since June, 1910"
In view of these conditions, the aud
itOrS recommended that their examln-
alton be extended to cover the period
from October l, 1889 to July q, 1917.
along lines which they indicated.
Attention was called to the fact
that the examination contemplated
relates exclusively to the cash tran
SactiOnS handled in the office Of the
city treasurer and does not include
tests of depa rtmental cash tranSac-
tiOns or review Of asset, liability. ant
operating accounts for the purpose q
expressing an opinion in the financia
statements of the city. Nor does ii con
template an examination of the re-
cords maintained by the city treasurer
in his capacity as treasurer of the
Board of Education, on the aSsump-
ton that such examination will be
made by the accountant for the board.
In view Of the apparent intermingling
of funds, however, Ernst < Ernst may
find it desirable to make limited ex-
animation of such records.
The program outlined would include
assistance TO the city in preparing
claims against the bonding company
and the accumulati Of data required
by the prosecuting attorney; also re-
concentrations with regard to safe
guard against further irregularities.
For it's services, the firm announced
a charge per day for time required.
the rate being $50 for supervising ac-
countants, $50 for senior accountants,
and $50 for junior accountants. g
Summarized, the auditors report To
date showed a juggling or informing
ling of funds of the WyandOtte Gen
eral hospital, delinquent tax account,
and Board Of Education.
The total amount of money unac-
counted for to date is $24,116.32. d.
vided as follows: City funds, $4,OOS.-
"a; Board Of Education, $20,10S.Os
The preliminary report concludes
with this statement: The discrepan-
cies indicated are subject to revision
upon the basis of information which
may be disclosed upon the completion
of the investigation. Data pertaining
to discrepancies in the funds Of the
Board Of Education is based upon the
records maintained in the office of the
citr treasurer relative thereto and up
on related data included in the records
of the WyandOtte Savings bank"
Firm to Continue Audit
AT special meeting of the Council
held Wednesday night. the following
resolution was adopted. authorizing
a further audit of city books
Resolved by the City Council of the
city of WyandOtte, that Ernst 4 Ernst
auditors, be and they hereby are auth
cried to proceed with the audit of the
records of the city Of WyandOtte. in
accordance with their recommendation
contained in their communication To
this Council under date of August 4
1912.