The Daily Alaska empire. [volume] (Juneau, Alaska) 1926-1964, 1951-03-01
S0L0N5 OK
ORGANIZING
PROPOSALS

Continued from Page One)
gested, should save the Territory
some money and without central
purchasing it would be almost i'm
possible to keep track of obliga-
/ tons.
Basic Principles
Reeves outlined the following
basic principles of good financial
administration:
Fix the responsibility. Don't have
too many people fooling with it,"
he said. If anything happens, they
will all say, He went hathaway"
Grant the responsible official au-
thority to execute his responsibility.
Don't give him a chance to say he
didn't have authority to do the
things he should have done"
Provide for audit and review of
transactions and practices by an
agency that is completely independ-
ent of those administratively re-
sponsible.
"All Territorial agencies should
be required to submit to financial
management" Reeves said, and
added, ITO the extent you do not
do this you do not want good financ-
ial administration"
Earmarked Funds
I'm going to give you a run
around on that" Reeves said when
Senator John Butrovich asked about
the desirability of "earmarked"
| funds.
Il would say" he added. that
earmarked or dedicated funds may
be wrong in principle but they are
frequently justified"
Reeves said, however, that there
is no reason why earmarked funds
should not be subjected to the same
kind of budget control and auditing
as other funds
A newly constituted five-member
Board of Administration was sug-
gested by Reeves to carry out the
functions of the present board and
to have power to appoint the Com
missioner of Finance.
He suggested that the board
should include the Governor, the
President of the Senate, the Speak
er of the House, the Chairman of
the Senate Finance Commute and
the Chairman of the House Ways
and Means Committee.
Situation Different
Reeves said he would have no
hesitation in suggesting that the
Governor be given the sole power
to appoint if the Governor were
elected, as in tn States. In the cir
cumstanc where the Governor is
appointed, however, he felt that ap-
pointive power should be in hands
directly responsible to the people.
Presenting a chart showing the
organization and responsibility of
the Department of Finance he pro-
poses, Reeves estimated that the
cost would be around S125,O0O a
year, or about third more than
the cost of the present inadequate
system of financial management
Establishing this new depart
ment will not solve all of your prob
lems," Reeves warned. 1T will be a
big job of study, design and estab-
fishing policy"
He suggested that it has usually
been found more satisfactory to
appoint than to elect financial
managers. He suggested term of
at least six years for the post-aud-
itor who, he said, sis bound to step
on some toes and should have some
security in tenure of office"
AS for planning of future reor-
ganization, Reeves suggested that
for the present this might well be
placed in the hands of his sug-
gested Board of Administration,
since they would perhaps be close in
touch with the needs for reorgan-
| iZatiOn.
1t would be necessary, he said,
to employ professional staff to
find facts and make recommended
lions to the committee, which could
in turn advise the Legislature.
The joint session adopted mo-
ton to accept the general principles
outlined by Reeves and to direct the
special joint committee to work
with him in drafting legislation COW
ering the recommendations.
Members of this committee in
clude Senators Engebreth, Butro-
vich, McCutcheon, Garnick, Beltz
and Nolan and Representative;
Egan, Franklin, Stepovich and
Hope
The committee was to start work
this evening at o'clock.