The Daily Alaska empire., 1951-02-28
Shakeupin Territorial Financial Operations
 Suggested by Reeves

switch from naval to civilian con- trol.
 Called To Alaska
 The 37-year-old financial adviser came to Alaska after numerous leg islators had expressed the hope of getting an outside consultant but had learned that the Arthur Ander- son Company auditing firm would not be able to have anyone here until March. Then Senate President Gunnard Engebreth communicated with the Council of State Govern ments; Gov. Gruening did likewise, and the council sent Reeves. One of his observations on the Alaska situation, after his first round or checking, was.
 "The territory's problem is pe- culiar in it's having NO elected gov ernor. Because of that. the govern ment is substantially in the hands of boards that have little effective responsibility to anyone.
 "The board system once was com mon in the states but it is not rec ognized as good practice" In one way, he observed, Alaska is better off in starting from scratch.
 'aThe territory Is fortunate in not having some of it's administrative monstrosities written into a consti- tution," he explained. "The legisla- ture has an opportunity to establish the most efficient government ad- ministrative organization in the world"
 "Man- Killing Duties" Tn discussing the plan for an overall financial head, Reeves said if would be a job with "man-killing duties" for the first few months or operation.
 His No. suggestion was that such finance manager should be ap- pointed, probably by reconstructed board of administration. Another key man would head an auditing de- partment which would be engaged continually in checking government department books. The office would take over the jobs now done by outside auditing firms.
 Reeves said such an office should be completely free from the admin istratiye departments. He said the audit department head probably could best be elected by the legisia- ture. He advised a comparatively long term so the man on the Jop could step on toes freely without worrying about losing his Jop py making people mad.
 | Could Be Ousted
 The finance department boss on the other hand, would be remov- :. able by the appointive head whether that be the board of ad- ministration or some other author ity. In states where there IS an elected governor, he said, 1t would be the governors responsibility Tn his outline of "the best thing that could be done about the or panization for financing admins tration" Reeves listed: l 1. Require all agencies or th' territorial government to submit t financial supervision.
 9. Establish a department of H. nance and place in it the functions of budgeting, pre-auditing (to make sure spending is authorize0 ac' counting. centralized purchasing nroperty control and treasury man agement.
 3. Appoint well qualified, vel paid commissioner as head of th' department of finance; give hin adequate authority to do his job
 4. Reconstitute the board Of ad ministration to get legislative repre- ,sentation.
 Responsible Agency 5. Provide an agency responsipl' to the legislature or the electorate to do auditing of all transactions.
 When. asked about the cost O such governmental revision, Reeve , said he did not think it would b' much more, if any. than the pres ent system at the start, and that would save money in practice.
 Some territorial offices woul' have to be embraced or absorbed in the revamping.
 Legislators who sat in on the spe cial committee conference wlti Reeves were:
 l Senators Engebreth, John Butro Iyich. Steve McCutcheon, Anita Gar nick, William Beltz and James No Ian.
 House Speaker William Egan an Reps. Glen F. Franklin, Mike Step ovich, Andrew Hope.
 The proposed 9 am. Thursda I