‘ip : ame oe” \ Pig tha } t a, 4 x 4 A Gusmery Review of mV OO ag, Preaeat Goucation? ama Reeds Submitted to the * paditor of State by the Rey Ohio Institute for Public Efficiency { Ea January 10, 1927. ag rh oak Bas han OM tod OHIO INSTITUTE FOR PUBLIC EFFICIENCY AK HARTMAN BUILDING COLUMBUS, OHIO Sumaary 3G, IITs me" pnd vor of Btose, cr Bear Girt In acoordance with eur gonversation #ith you, we have mode a Orie? review of the present asecun ting ayotex of the state, cone tering in your cffieq, ome submit herewith o summary of present conditions, together with gmherks recceweniationa as tc the mein eteps ‘an our jucgment neossecry te bring the etate’e aogounting methods inte aegord #ith the beet modern practice. se awe avoided going inte techni« Ogii ties or detalia, toinking that theee would be gupes?iuoue at thie the, Youre very truly, Ladoa ee?) ae Rex: % ie ‘PRELIMINARY STATPUENT As wos well Fiabés in the eutind biped of the Au} ditor of State for 1914, the accounting system in uee in “Ohio has been the development of many years of gonfused, haphagard and unselentific presedure,: Under thease ciroume @tanoes, it is but natural that the lave governing this sube . sect, passed at different times and having various objects “Gn view, should e@ ineking im censioteney and fai1 to com i S = For thie reason, s review has beon made of the pres= ent methods and procedure in eréer to place before the Audi- tor of State, the Governor, and the Legislature, a general euamary of exieting conditions and the genéral meseures which are considered to be necessary to enable Ohic to measure up to the beat modern dicadasde of accounting practice. A tumber of forward steps have been taken by the present Auditor of State, Neverthelesy, am the Auditor is A \ es . oo < Ma ” r errs pisen -% present defects, no rd eae law as Seotion 241 of the Genoral Code, to make the Au- 4 out the G@tate and ite politioal subdivisions. If such was c the intent, it seems, so far ae the state government is con- es ss earned, to have been frustrated, st leaet in part) hy other swith power to presoribe guitable accounting methods through~ tion of & completely unified acecunting system for the state ee It wes apparently intended through such provieions « Gitex of State the chief acccunting cfficial of the state, = = © provisions, giving iniependent powers te specified departnente., = Ag a reoult, it becomes impossible for the Additerc® — he, of State to ering about, excep tiey cooperation, the inetalla- government aa a whole, which will enable him from month to month, quarter to quarter, and year to year, to present to the Governor enc to the public the gomprehensive and accurate _ Snformation which they are entitled to have. a Pa lee: rene a te of oR ai Raa a ; iy eae ee ‘4, SWbteevote Aaue gaa bs oe PA Pe = S i + 8 é sae oe ; * be =a 3 4 €sal >of ¥: % , - x ts $ i Cea nn . ae ; F ee : > : Pee iy bs: ‘ Af - : A . ' % .” ob A ot ahd ila 57 ae . ‘ Te. bi z Rasah vst Je i . b / , ; ‘ »~ , : ie ee a ~ ae coe me ok ve Z A a t ti ie <> Rey hited pie 5 eX Hel AVseigs as ere Val) Bae Cee ee ‘ . e he - , * A < i Aer d pektarvecous: aii noe tede Ee BF ‘asd: te PT La ‘ i . * d , ot es ; t , on Pere ISS SESS CORRS Late Re Le ee wie Bae 2 ve P uk yey } ea Rae : 4 1a Ww Ps > eS ‘ ’ 3 & a PF f + y ‘ edn} : Pee Ged Ret a 4 « Sie ¥ ro t If the Governor as chief exeoutive ie not provided with the neccesary instramente for exercising his executive powers with full effectiveness, a high degree of efficiency and ¢eonomy cannot be expected. Ao % means for providing the Governor with the necessary inetrumenta, a unified ac- gounting system is eesential, The only prnotical hope of se- | guring a unified- accounting syetem lies in centralised au- “therity in the hande of the Auditor of State, “ee ‘gue tia ad idaluins 0 tt Pa aeseb i: vie hesalevs a yy ae ened alee - B, Revenues Not Accrued Owing doubtless to the lack of legal authority, the office of the Auditor of State does not now secure daily re-. porte of revenue or of the oharges made to individuals or Corporations for services, commodities, licenses, permite, etc. While some of these charges may be paid at ones, some Yemain unpaid; in other words, credit is extended... If un- paid, they should app@ar in the records as secounts raceiv- ole. The totad nies are then the gross ne ef the state, although the charges may have been made by edhe departments. At present the reports are on a cash basie and Geal with regeipte only, irrespective of the date charged to individuals or corporations. At present, the accounts receivable not being prop- eriy set up in the records, any statement of the state's rev- enues as at any partioular date cannot be complete. In con- sequence, the financial condition of the state on that date is not ascurately reflected. Ss ih wee ae a, ae me eda ot eapbagunle a ¥ ’ Ge aes « winds ace weg: won aad. ed te poenaun x é , re ) t2 cdnwbsys bit ies aban sagkedy ade Xo: mo. meee . eb inwes eeemenil , os la tbemaes p RO REV TLS rar ‘s Fas o o's Aly ee 3 ar T) Sa bold ARES. ta, asin ect” ‘a ie. ae eben fee aL tihece . poner Tome pea %: wE CIE cae ae abiiugercg? «ir neeggm Sipe oe Wie wo. Ste atietiat ony: €aeai vee: ae i Ba3 bo evid pa taetRt ae saqivant phe ge isoesykor, tei wi 2a 8 reg Lo Pig ee ee epee re ¢ ia; & ai hy ~ be ap a, a a fete whe mare | inter SP 69eF6. aks 20 taeastedy yaa asbeonge basil aa: ~ Spat (a ie “foo “1 #89 fqnoo of Qonaeg Fas ne ceutieae xs te ae oF gounting control over orders and contracts, in ordex to pre- re ge ay ee. 2 ee. oT PODS nS ahem Ea os PT Rm aoe 4 — mag? « (eee went overdrafts on appropriations, Ge Hy eee ~~ és . “ ee ; A proper preeedure would require that orders about i | ‘to be isaued or contracts about to be entered into should er Bae pet: ¥iget be aubnitted te the Auditor of State for hie eertifie ation that unas ase available for meeting the obiisation when due, The necessary smcunt would then be set aeide for ae : this purpose until the i liek tee finally audited end paid. This procedure is not now carried out. Hense the Ausitor ig not in « position to prevent the incurring of obe Ligations in excese of aprroprintions or of the ceah to meet oe during the fieecal sais Neither 16 he in a position to know the outetanding obligatione of the atate at the close of each month or fiscal year, The game lack of full legal authority apparently pre~- vents the Auditer of State from exercieing an effective ac~— rae Yadadorsns “ork oteeh Ee * SaORy oF cefse Hh yer: +