Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-11-05
AuditorsUrge
Budget Reform
In Arlington
Firm Reports Lack
Of Advance PIunninc
Decentralization

Decentralization
Basic changes in Arlington
County's budgetary procedures are
recommended in an audit report
on the fiscal year ended June 30,
1851. it was learned today.
The auditors reported lack of
advance planning of revenue and
expenditure estimates.
Their report. given to county
board members at a meeting Sat-
urday. concluded that account
keeping is SO far behind that
proper financial control over bud
geted items is not possible
1t was reported that appropria-
ton accounts for construction
projects have not been kept and
this has resulted in supplementary
appropriations when original cost
estimates were exceeded.
Our examination of the opera
ton of the budget during the year
under review indicated that there
was a definite lack of advance
planning with respect to both es-
Inmates of revenue and appropria-
tions." the firm of r. Coleman
Andrews & Co. of Richmond. re-
ported.
Supplemental Funds.
Supplemental appropriations
were numerous and rather large
in amount, and in some cases def
mite obligations or commitments
were made before the board had
made appropriations therefor"
the firm stated. Revenue estimates
were revised, the report said, to
cover supplementary appropria-
tons.
I'm brief. budget operations
have come to lag behind actual
operations. Thus, in practice, the
cart has been put before the horse
and the budget has lost it's value
as a medium of financial and
operating control" it is stated.
County Board Member Robert
w. Cox said the audit report
marks another major milestone
in our program of building in
Arlington one of the best local
governments in the United States. ="
He recalled that he had pre-
sented the motion last May that
the Andrews firm be retained to
make a comprehensive audit and
survey.
Statement Cited.
Mr.. Cox cited a statement in the
report that "the affairs of the
county are generally well con-
Quoted" and he also noted a
comment that THE County Board
seems aware of the situation and
in its recent selection of a new
finance officer Edgar D. Smith
picked gentleman who appeared
to us to comprehend the situation
fully and understand what has to
be done to correct"
Several reasons are advanced in
the report for the alleged def
Iciencies in budgetary procedures.
These include:
l. An assertion that the county's
accounting has been carried ito
extreme and, in some cases, alb
Isurd limits, and q. is too highly
centralized.
2. Some of the activities pres
emily under the direction of the
finance director would be more
appropriately assigned if vested in
IotherS.
3. "A clear lack of positive def
milton of responsibilities and du-
ties and the degree of Illustration
and confusion that usually exists in
the absence of such definition :"
was reported by the auditors.
Surplus Tapped.
The years expenditures aggre-
gated $13,201,577. of which So
POI ,584 went for operating ex-
penses and debt service, and 81
909,993 for capital OUTLAWS. The
years receipts aggregated $780,
458. so that surplus funds pre-
viously accumulated had to be
tapped for $375,119.
Bonded debt at the end of the
year totalled $9,452.922 and the
real estate assessment amounted
to $113,816.743. The auditors set
the ratio of net debt to the real
estate assessment at 8A per cent.
Searching review of the county's
water and automotive equipment
funds is recommended.
Water Rates Questioned.
Either the water rates are too
high or the operating expenses of
the water department are amaz-
ingly low. or both conditions may
exist to some degree. We suspect,
however. that a more likely answer
is that the ALLEGATION of water de-
partment expenditures to i'm
provements to and extensions of
the water system are excessive, -
the auditors declared.
1t was noted that "notwith-
standing the absorption of capital
outlay expenditures almost equal
to the cost of operating the water
department, the available balance
of this fund (water) increased by
more than $42,500."
With respect to the automotive
equipment fund. the report de-
clared that "the charges made to
the several departments and
establishments of the county fol-
the use they make of the vehicles
covered by the automotive equip
ment fund are too high"
New Department Urged.
The report recommends changes
in the basic structure of county
organization to- create a depart.
ment Of public utilities and re-
move the purchasing function
from the finance Office, making il
a separate function of govern
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