MASTER 
 NFGATIVE 
 
 NO. 94-82049 
 
COPYRIGHT STATEMENT 
 
 The copyright law of the United States (Title 17, United States Code) 
 governs the making of photocopies or other reproductions of copyrighted 
 materials including foreign works under certain conditions. In addition, 
 the United States extends protection to foreign works by means of 
 various international conventions, bilateral agreeme-r j 
 
 proclarrations. 
 
 Under certain conditions specified in the law, libraries and archives are 
 authonzed to furnish a photocopy or other reproduction. One of these 
 specified conditions is that the photocopy or reproduction is not to be 
 "used for any purpose other than phvate study, scholarship, or research." 
 If a user makes a request for, or ater uses, a photocopy or reproduction 
 for purposes in excess of "fair use," that user may be liable for copyhght 
 infringement. 
 
 The C( ; ; bin L ■vcrs'-y Libraries reserve the right to refuse to accept a 
 copying order if, in its judgement, fulfillment of the order would involve 
 violation of the copyright law. 
 
•»% 
 
 or: 
 
 rican aud^t com 
 
 ®^ » 
 
 Re 
 
 r©i3T! 
 
 I 
 
 ^^IPPP*^ ^^s 
 
 
 ,^' 
 
 1-H '{ir,5_., *r 
 
 -ysf ■ 
 
 endations 
 
 a general 
 
 r 
 
 .j*»fe 
 
 
 
S^off -f 
 
 MASTER NEGATIVE # 
 
 COLUMBIA UNIVERSITY LIBRARIES 
 PRESERVATION DIVISION 
 
 BIBLIOGRAPHIC MICROFORM TARGET 
 
 ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD 
 
 430 • 68 
 
 Am3 
 
 Ajnerican audit oonpany, 
 
 • *• Heconmondations rolativo to a f^onoral system 
 of accounting for tho city of Baltimore. ^Balti- 
 more, Dulany, 1909?3 
 
 48 p. 23 era. 
 
 At head of title: Mayor and city council. 
 
 i-|pi^_p^, ~_-,^ »m Ofy ijQci« 
 
 TECHNICAL MICROFORM DATA 
 
 FILM SIZE: 
 
 l/]/[l/V\ 
 
 REDUCTION RATIO: 
 
 . n 
 
 X 
 
 IMAGE PLACEMENT: lA 
 
 (^ 
 
 IB IIB 
 
 DATE FILMED: 
 
 V/ w ^ 
 
 INITIALS: 
 
 TRACKING « : 
 
 imw 00$ $o 
 
 FILMED BY PRESERVATION RESOURCES, BETHLEHEM. PA. 
 
.'^Z 
 
 w 
 
 a 
 
 ^■^ 
 
 ^^ 
 
 '^ 
 
 
 CJl 
 
 3 
 3 
 
 
 \ 
 
 \ <* 
 
 o 
 o 
 
 3 
 3 
 
 V 
 
 ** 
 
 •x' 
 
 ,\' 
 
 ^ 
 
 V 
 
 ^p 
 
 ^^ 
 
 cjn 
 
 f^ 
 
 'fvT 
 
 N> 
 
 ISJ 
 
 o 
 
 U1 
 
 3 
 3 
 
 3 
 3 
 
 
 
 > 
 
 
 a? 
 
 c: 
 
 
 1^ 
 
 a^ ;_; 
 
 
 cr ^ 
 
 Q) 
 
 n rr 
 
 fi > 
 
 'v- , , 
 
 CL"^ 
 
 g-CD 
 
 — . r^i 
 
 0) C 
 
 
 -O 
 
 0? — 
 
 •zi:-Ti 
 
 — ""^ 
 
 ^=^ ^. 
 
 3i 
 
 ." , 
 
 f^^-:^ 
 
 3 ^ 
 
 ^ :x 
 
 OJTT ^ 
 
 
 
 $5 5 
 
 ^1 
 
 S^Z 
 
 o>3 ;z 
 
 <^ 
 
 < C 
 
 -^O c 
 
 
 NI CO 
 
 
 
 ^—1 
 
 < 
 
 OOM 
 
 "^1 
 
 $ ^- 
 
 >^ 
 
 
 X <. 
 
 o 
 
 •^ -c- 
 
 
 
 
 
 O 
 
 -<. 
 
■.fM*fr'«***''*^ W' •*«.* A'*^'<^:-: 
 
 MAYOR AND CITY COUNCIL 
 
 Recommendations 
 
 RELATIVE TO A 
 
 
 General ^jdcm of Accounting 
 
 
 FOR THE 
 
 C..Y OF r.*.L vICa^ 
 
 L 
 
 Prepared by 
 
 THE AMERICAN AUDIT CO.. 
 
 100 BROADWAY AND THE WALDORF-ASTORIA. 
 
 NEW YORK CIT^ 
 
Columbia (HnitJem'tp 
 
 mtl)r€ttp0f3lmig0rk 
 
 LIBRARY 
 
 School of Business 
 
MAYOR AND CITY COUNCIL 
 
 R ecommenda tions 
 
 RELATIVE TO A 
 
 General System of Accounting 
 
 FOR THE 
 
 1 
 
 CITY OF BALTIMORE 
 
 I 
 
 Prepared by 
 
 THE AMERICAN AUDIT CO.. 
 
 100 BROADWAY AND THE WALDORF-ASTORIA. 
 
 NEW YORK CITY 
 
\ 
 
 <t 
 
 
 iSf 
 
 y .> 
 
 3 ^30. G2 
 
 r 
 
 Y>^ 
 
 3 
 
 
 
 INDEX 
 
 City Departments. page. 
 
 Appeal Tax Court ly 
 
 Baltimore City Jail 24 
 
 Bay View Asylum 26 
 
 Board of Estimates 12 
 
 Board of Fire Commissioners 26 
 
 Board of Park Commissioners 27 
 
 Board of Police Commissioners 42 
 
 Board of Police Examiners 42 
 
 Board of Public Improvements 12 
 
 Board of School Commissioners 28 
 
 City Collector 17 
 
 City Comptroller 5 
 
 City Departments, General Criticisms and Suggestions 14 
 
 City Engineer 29 
 
 City Librarian oq 
 
 City Register 12 
 
 Collector of Water Rents and Licenses 23 
 
 Commissioner of Health oj 
 
 Commissioner of Street Cleaning 31 
 
 Commissioners of Finance ^2 
 
 Commissioners for Opening Streets 32 
 
 Coroners .... ^ 
 
 Courts ^2 
 
 Department of Legislative Reference 33 
 
 Diary of City Council j2 
 
 Electrical Commission ^^ 
 
 Free Public Bath Commission 34 
 
 Harbor Board ^c 
 
 House of Correction ^ 
 
 Inspector of Buildings 3c 
 
 Law Department ^7 
 
 Liquor License Commission ^2 
 
 Market ^Master 37 
 
 Mayoralty 33 
 
 Municipal Telephone Exchange 12 
 
 Reformatories j2 
 
 Sewerage Commission -,q 
 
 Superintendent of Lamps and Lighting ^g 
 
 Superintendent of Public Buildings ^g 
 
 Supervisors of City Charities .q 
 
 Supervisors of Elections ^ 
 
 Tax Bailiffs ^^ 
 
 Topographical Survey .q 
 
 Water Engineer . j. 
 
i 
 
 I HIS pamphlet contains the report on 
 the accounting system of the City of 
 Baltimore. In addition to this, there has 
 been filed with it duplicate reports in 
 detail of each city department. The orig- 
 inal copies have been filed with the City 
 Librarian for further reference. 
 
 THE AMERICAN AUDIT COMPANY 
 
 100 BROADWAY 
 
 NEW YORK, October 26, 1909 
 
 To the Honorable Mayor and City Council 
 
 of the City of Baltimore, Maryland. 
 
 Gentlemen : — 
 
 In addition to our audit of the books of the various Depart- 
 ments of the City of Baltimore for the period from January 
 1st, 1907, to June 30th, 1909, the results of which we have 
 reported separately by Departments, we have been requested 
 to make recommendations as to a general accounting system for 
 your City. 
 
 In accepting this responsibility, we must consider to what 
 extent the information needed by your honorable body for a 
 wise and economical administration of the City's Affairs, may 
 be reflected in the accounts, and how far the present system 
 supplies such information. 
 
 Your present system is based, almost exclusively, on Receipts 
 and Disbursements of cash. This includes only that part of 
 actual revenue and expenses, consisting of cash received and 
 disbursed, and leaves out of the accounts what revenue is due 
 to the City at the end of the fiscal year, and what is due by the 
 City for expenses incurred during that period. 
 
 The property owned by the City is not incorporated in its 
 accounts on the Comptroller's books. In furnishing informa- 
 tion as to what constitutes this property, the Comptroller has 
 to rely for a basis mainly upon a list included in a ''Statement 
 of Assets and Liabilities" compiled by the Comptroller in 1902, 
 who stated in his report that it was from "incomplete depart- 
 
mental records." In other words, the present books of account 
 do not record all the property owned by the City, and fail to 
 show accurately either revenue earned or expenses incurred. 
 The Comptroller endeavors to show the liability for unpaid 
 bills at the end of the fiscal year; but as they are not charged 
 to the respective accounts for which the debt was made, these 
 accounts do not show whether the entire actual expenditure is 
 within the amount autliorized by appropriation. 
 
 To meet these defects, the accounts should be arranged so 
 as to show not only the receipts and payments of public moneys 
 raised for specific purposes, but the balance of cash, uncollected 
 revenue, and other assets available to meet current liabilities 
 incurred for expenses provided for by appropriations, and 
 whether the aggregate of paid and unpaid items of expense are 
 within the amounts appropriated for the several purposes, also 
 what surplus for the year remains to be deducted from the 
 ensuing levy, or what deficit must be provided for. They 
 should also show the condition of the Funded Debt and Sinking 
 Funds, all Assets and Liabilities, and the assessed value of 
 taxable property. Taxable Real Estate is the main source of 
 revenue, measuring the limit to which the City may with 
 advantage, both to itself and the holders of City Stock, increase 
 the amount of its Funded Debt. 
 
 CITY COMPTROLLER 
 
 The duties of the Comptroller should not include the hand- 
 ling of cash, as such an arrangement conflicts with the theory, 
 accepted by all leading financial and industrial institutions, that 
 the duties of Bookkeeper and Cashier should be kept separate. 
 Under the present system, however, this Department handles a 
 considerable amount of cash in connection with its duties 
 relative to Harbor Master, Market Master, Inspector of 
 Weights and Measures, the issuance of minor licenses, and the 
 management of certain City properties. Its present duties 
 require the collection of money from these several sources, the 
 recording of the transactions, and the auditing of the records. 
 
 This condition should be changed, as it is destructive of the 
 very safeguards which are imperative in all properly regulated 
 systems of accounts. 
 
 The discrepancies occurring in this Department during the 
 period covered by our examination, while not large in amount, 
 were mainly, if not entirely, due to the above mentioned con- 
 ditions. 
 
 We would suggest that the Department of the Collector of 
 Water Rents and Licenses be designated to record and collect 
 the items here referred to as now being handled by the Comp- 
 troller's Department, unless the authorities prefer some other 
 course. Whatever method may be decided on, an immediate 
 severance of the conflicting duties and responsibilities of the 
 Comptroller should be eflFected. 
 
 The Comptroller's Office should be shorn of all duties except 
 those pertaining to Comptroller, Auditor and General Ac- 
 countant. 
 
 Appropriate books and blanks should be prepared for his 
 use which will at all times reflect the City's financial condition 
 based upon the transactions entered into by and on behalf of 
 the City through the several Departments and subdivisions 
 thereof. These transactions should be reported to him daily 
 by means of blanks, which we have in mind to prepare, for the 
 purpose of recording each specific transaction, whether it be 
 the receipt or payment of money, contracts awarded or com- 
 pleted, or bills contracted for services or materials. 
 
 The Funded Debt should be entered in the Controlling Ac- 
 counts on the General Ledger in the Comptroller's Department. 
 
 The unpaid bills at the end of the year should be charged 
 against the accounts for which they were incurred, and be 
 credited to Accounts Payable. Accrued Items should be en- 
 tered as at December 31st, 1909. The balances brought for- 
 ward on January ist, 1910, if gathered together, will then 
 constitute a Statement of Assets and Liabilities. 
 
 The General Ledger will then become the book in which 
 control accounts over all Departments will be kept, and will be 
 so arranged that it will be convenient to prepare therefrom a 
 daily trial balance for such uses as may be desired. 
 
The details, underlying the general accounts here suggested, 
 need not be kept in the Comptroller's books, but should be fully 
 stated in the records kept by the Departments, while the gen- 
 eral books in the Comptroller's Office should deal with total 
 results and furnish a control over the records of the Depart- 
 ments. All the accounts should be so arranged as to reflect 
 information which will be available as a basis for intelligent 
 action in making appropriations for administrative and other 
 purposes, and capable of analysis in such a manner that an 
 accounting for fidelity may also become an accounting for 
 economy of administration. 
 
 This arrangement will, for the first time in the history of the 
 City, incorporate in its accounts all the information usually 
 included in the Comptroller's Reports. 
 
 Copies of the minutes of bodies authorized to make appro- 
 priations, and pass upon the payment of money, should be filed 
 with the Comptroller. 
 
 All accounts for which appropriations are made should 
 include in the caption of the account the limit of expenditure 
 authorized by the appropriation. All accounts for which esti- 
 mates of receipts have been made should include the amount of 
 such estimate in the caption. The General Revenue Account 
 should include in its caption on the debit side the amount rep- 
 resenting the aggregate of all appropriations, and on the credit 
 side the total of the amounts estimated to be received. This 
 would result in establishing the equilibrium of these debit and 
 credit memoranda. 
 
 We advise that the present use of Receiving Warrants in the 
 Comptroller's Office be dispensed with, except in the case of 
 Revenue from the Departments controlled by the State, as a 
 check on all other funds received by the City Register will be 
 effected in a different manner. 
 
 The Auditors in the Comptroller's Office should visit every 
 Department and subdivision thereof at frequent intervals, make 
 a complete check of the details, and verify all daily statements 
 rendered to the Comptroller's Department. The more fre- 
 quently these examinations are made by the Internal Auditors, 
 the better will the City's interests be safeguarded. Such a plan, 
 
 8 
 
 if properly carried out, will keep the Comptroller fully informed 
 as to general conditions in each of the several Departments. 
 The use of blanks for the purpose of reporting changes in the 
 accounts in the Departments will make unnecessary the present 
 plan of checking up the items with the Department each month, 
 as these daily reports can be so filed as to form a book of 
 original entry for the Comptroller's Department. 
 
 Accountants, not connected with the Comptroller's Depart- 
 ment, could be engaged to advantage for the purpose of install- 
 ing a system of accounts, in line with the suggestions made 
 herein, and supervising same for a period of time sufficient to 
 insure' its satisfactory operation. These Accountants should 
 also audit the records of the Comptroller, report from time to 
 time that the system as installed is being efficiently operated, 
 and make such recommendations as will tend to increase its 
 efficiency and adapt it to possible changed conditions. 
 
 In order that the City property, both real and movable, may 
 be incorporated in the accounts on the Comptroller's books, it 
 will be necessary to take complete inventories of all the City's 
 assets under proper headings on December 31st, 1909. 
 
 Ordinance No. 35, 1900, approved March 5th, 1900, provides 
 that inventories of movable and perishable property shall be 
 made annually and filed with the City Librarian. This ordi- 
 nance is indefinite as to the date of filing inventories, whether 
 they are to be priced, extended and approved by competent 
 authority, and as to the forms in which they are to be rendered. 
 
 For the purpose of continuing the idea of centralized accounts 
 and maintaining proper control, we would suggest that the 
 ordinance be amended, substituting the words "Comptroller's 
 Department" for the words ''City Librarian," and so worded as 
 to provide for the immediately preceding suggestions. 
 
 These inventories should be entered on the books as at Janu- 
 ary 1st, 1910, and will form the underlying basis for the system 
 of' controlling accounts on the General Ledger in this Depart- 
 ment. 
 
 The following example illustrates the application of a control 
 account as to Real Estate Tax Revenue : 
 
Assume that the Appeal Tax Court reports a taxable basis 
 to the Collector showing a valuation of real property of 
 $icx),ooo,ooo, on which the tax rate has been fixed at two 
 per cent., and that the City Collector is chargeable with 
 $2,000,000 for real estate taxes to be collected. The City 
 Collector receives from the Appeal Tax Court the details of 
 the assessment, the Comptroller receives at the same time, from 
 the Appeal Tax Court, the aggregate amount of the assess- 
 ments, and, having before him the rate, he charges the City 
 Collector and credits Real Estate Tax Revenue with $2,000,000. 
 The City Comptroller subsequently reports to the Comp- 
 troller collections on above account of $100,000. Upon the 
 receipt of that report, the Comptroller credits the Collector 
 and charges the City Register with $100,000. Comparison of 
 the report covering the receipts of the City Register with the 
 report from the City Collector will show that the amount col- 
 lected has in fact been received by the City Register. The 
 control account on the Comptroller's books will then show an 
 open balance of $1,900,000 to the debit of the City Collector, 
 while the Collector's books will show the details aggregating 
 this amount. 
 
 Changes in the assessment rolls can be made only on the 
 order of the Appeal Tax Court. When these orders are made, 
 the original should be sent by the Court to the Collector, and a 
 duplicate sent to the Comptroller for proper adjustment of the 
 Control Accounts. 
 
 In the event of there being other changes in the details, either 
 of the amount charged or the amount credited to these accounts, 
 information concerning same should be at once conveyed to the 
 Comptroller's Department in the manner before suggested, that 
 the Comptroller may make proper adjustments in his accounts, 
 whereby they may reflect at all times the actual condition, and 
 maintain control over all Departments. 
 
 The present method of handling pay rolls needs only slight 
 modification. We recommend that the pay rolls for laborers 
 be made up by a different person from the one whose duty it 
 is to see that each man receives the amount due him as shown 
 by the pay roll. The Internal Auditors in the Comptroller's 
 
 10 
 
 Department should verify all pay rolls, paying particular atten- 
 tion to the checking of the time records of the men on pay 
 rolls that include laborers. This procedure will throw an added 
 safeguard about the large disbursements of City money made 
 
 through this channel. 
 
 The question has been raised as to the advisability of creat- 
 ing the office of General Paymaster for the City. From the 
 standpoint of safety, we can see no advantage in such an 
 arrangement over the present system, when modified and 
 audited as previously suggested. 
 
 Under the present general system of administration, materials 
 and supplies, aggregating a large amount, are purchased by 
 the various Departments. Many articles of the same kind are 
 purchased separately by such Departments. Stores of materials 
 and supplies of a like nature are kept in several places, requir- 
 ing the attention of at least one man in each Department where 
 they are stored, and making it necessary to prepare several 
 inventories for the same kind of articles. In our opinion, the 
 establishment in the Comptroller's Department of a General 
 Purchasing Agent would be of advantage in many ways. His 
 duties should include a careful consideration of market values 
 of articles to be purchased, and he should inform the Board 
 authorizing purchases, as to prices. The various materials and 
 supplies should be purchased in quantities required by all of 
 the Departments, and the same care taken as to business 
 arrangements, including wholesale prices for large quantities, 
 subject to the same cash discounts and trade discounts as are 
 allowed to any other purchaser under similar conditions. 
 
 When these purchases are made, they should be charged to 
 General Stores, and should be issued on requisition as needed 
 bv the Departments, charged by the Comptroller to the Depart- 
 ments, and credited to General Stores. The Departments 
 should charge the proper accounts with materials or supplies 
 consumed. After tools have once been requisitioned out to the 
 Departments, they should be looked after to such an extent that 
 when a requisition for replacement is received it should be 
 accompanied by notice from the General Store Keeper that 
 the worn-out tools have been returned to General Stores. This 
 
 II 
 
would tend to show to what extent tools have disappeared from 
 the Departments. 
 
 In other words, instead of various smaller purchases of the 
 same or similar articles, we would have one purchase of a 
 larger supply, presumably at lower prices; instead of various 
 depots where supplies, etc., are stored and looked after by a 
 greater number of persons, we would have one depot looked 
 after by fewer persons ; instead of the purchases being made 
 by a greater number of persons, they would then be made by 
 one person; and all the material and supplies would be sys- 
 tematically accounted for. 
 
 An illustration of the advantage of following the foregoing 
 plan is to be found in tlic Department of the Water Engineer, 
 where the system relative to the care of and accounting for 
 stock is excellent. 
 
 Payments made for account of the Board of Estimates, Board 
 of Public Improvements, Diary of City Council, Municipal 
 Telephone Exchange, Reformatories and other items for which 
 special and general appropriations are made, should be recorded 
 on the Comptroller's Ledger, except where the appropriation 
 covers expenditures to be made by or on behalf of any De- 
 partment, in which case the payments should be entered on the 
 books of that Department. 
 
 CITY REGISTER 
 
 The City Register is register of the Public Debt, and Cus- 
 todian and Distributor of City funds, upon warrant of the 
 Comptroller. He should arrange the receipts of Cash in a 
 book to be provided with columns, classified according to the 
 sources from which they are derived, or departmentally, and 
 should deposit in bank daily all receipts, without exceptions. 
 
 All Departments should send to the City Register the amounts 
 collected the previous day, with a statement showing the 
 sources of such receipts. A duplicate of this statement should 
 be sent to the Comptroller's Department, thus doing away with 
 the necessity of the Comptroller issuing a Receiving Warrant 
 
 12 
 
 i 
 
 i 
 
 to the City Register, except in the case of the Departments 
 controlled by the State. 
 
 In our opinion, it would be better if all payments were made 
 by check, regardless of the amount. If this were done, the 
 keeping of the present Petty Cash Book could be dispensed 
 with. The deposits of all Receipts in bank and the payment of 
 all items by check would result in the proof of the footing of 
 the Cash Book from an outside source, viz, the pass books of 
 the various banks. 
 
 The present practice of entering the number and amount of 
 each check in the bank pass books should be discontinued, as it 
 is a duplication of the entries on the Cash Book and the stubs 
 of the check books, and presents an opportunity for the perpe- 
 tration of fraud against the City. 
 
 A check should be drawn by the Register upon a warrant of 
 the Comptroller to provide a fund for interim payments on pay 
 rolls of laborers. This fund should be at all times on hand, con- 
 sisting of the cash or pay roll tickets. When a check is drawn 
 for the pay roll, the fund should be reimbursed for the amount 
 of the tickets on hand, and the tickets returned to the Paymaster 
 of the Department in which they originated. 
 
 No distribution of expenditures need be made in the City 
 Register's Department, as such distribution is provided for by 
 the Comptroller's Disbursing Warrant Book. The City Regis- 
 ter should only be required to enter the payments on the credit 
 side of his Cash Book, giving date of payment, name of payee, 
 warrant and check numbers, and the amount paid. 
 
 The shortage discovered in this Department, and reported 
 upon by us under date of May 15th, 1909, was due to the lack 
 of proper checks on the daily deposits in banks. Such checks 
 have since been instituted and are now in use. These, com- 
 bined with the control account and system of internal audit 
 previously recommended in this report, will minimize the oppor- 
 tunity for theft and make certain its early detection. 
 
 We have supervised the installation of blanks which account 
 more satisfactorily for the petty cash on hand (pending the 
 discontinuance of the Petty Cash Book) and also for reporting 
 the amounts on deposit in the various City Depositories. 
 
 13 
 
 i 
 
 <« 
 
 t 
 
 
There will be no need to keep a Ledger (except Stock 
 Ledgers) in this Department, the necessary information being 
 recorded on the books of the Comptroller. 
 
 The Stock records of the City (Funded Debt) are at present 
 kept in the City Register's Department. The manner of keep- 
 ing them deserves commendation, as it throws safeguards 
 around the issuance of City Stock, and minimizes the likelihood 
 of any discrepancies in this branch of the work of the City 
 Register's Department. 
 
 The books provided for this branch of the work are gener- 
 ally suited to the purpose. We recommend, however, that all 
 cancelled or voided stock certificates be attached to the stubs 
 from which they were issued. 
 
 A book, showing at a glance the condition of the City's 
 Funded Debt, subdivided as to loans, should be provided, and 
 changes recorded therein as soon as they occur. 
 
 The City Register should render a daily statement to the 
 Comptroller, a duplicate of which should be sent to the Mayor, 
 showing the receipts and disbursements for the day and the 
 amount of money on hand belonging to the City, and giving 
 the depositories in which these funds are located. This state- 
 ment should be confirmed by the banks by triplicate written 
 acknowledgment of amounts deposited with them, one notice 
 to be sent to the Comptroller, one to the Mayor and one to the 
 City Register. 
 
 CITY Di:i*.\RTMENTS- GHNERA!^ CRlTiaSMS AND 
 
 SUGGESTIONS 
 
 In our discussion of the various Departments of the City 
 Government, and of the methods of accounting now in force 
 therein, there are some criticisms and suggestions as to modifi- 
 cations or complete changes that are applicable to all of the 
 City Departments. There are also phases of the work and the 
 recording of the results that are distinctive features of particu- 
 lar Departments. Having in mind the above facts, and wishing 
 to submit our remarks in such a manner as to be most easily 
 
 14 
 
 "V 
 
 i 
 
 f « 
 
 
 .') 
 
 
 followed, we shall refer in the first place to the Departments 
 generally, and, under separate headings, to the distmctive fea- 
 tures of specific Departments. 
 
 The books of the several Departments should show m detail 
 both Revenue and Expenditures, proper control over the same 
 being exercised by the general books kept in the Comptroller s 
 Department, which will, however, deal with total amounts. 
 
 There should be provided for each Department wherem pur- 
 chases are made, a Voucher Record Book in which all invoices, 
 after being properly approved as to quantity, prices and exten- 
 sions and the original requisition attached thereto, should be 
 entered and appropriate distribution shown against Depart- 
 mental appropriations. The amount of the several appropria- 
 tions should be shown at the head of the columns in which the 
 distribution of charges are made. When the invoices are ready 
 for payment. Departmental Disbursing Warrants should be 
 made and sent with the invoices to the Comptroller's Depart- 
 ment' and this fact should be recorded on the Voucher Record 
 Book A statement should be sent with these Invoices and 
 warrants showing the condition of the appropriations after 
 these charges have been made against them. 
 
 We aim to distinguish between Revenue and Cash Receipts, 
 the present accounts in a majority of the Departments dealing 
 exclusively with Receipts. Therefore, we propose to install 
 as a Book of Account in each Department, though adapted to 
 their several needs, what we shall term a Revenue Record Book. 
 In this entry will be made of all items of Revenue, whether 
 actual Receipts, or Accounts Receivable, and reported daily to 
 the City Comptroller on blanks designed for that purpose. Pro- 
 vision should be made for an analysis showing the nature or 
 source of Revenue, and for recording other desirable data. 
 
 No Department should be allowed to deliver property sold 
 by the City, except on order duly authorized, accompanied by 
 a' receipted bill for the property in question from the City Reg- 
 ister. In some instances, the amount to be received cannot be 
 calculated prior to the delivery of the property, in which case 
 the Department, having made proper entry on its records, 
 should send to the Comptroller a duplicate bill. All bills ren- 
 
 15 
 
 \ 
 
-r* 
 
 dered by the Department should be reported in detail, upon 
 proper blanks, to the City Comptroller. The Department 
 should notify the Comptroller when such bill is paid. 
 
 If for any reason Cash has been received in the Department, 
 such Cash should be deposited with the Register on the day 
 following, and a report, with the duplicate bill, sent to the 
 Comptroller. 
 
 In many Departments the term "Expenditures" is used where 
 ''Disbursements" (of Cash) is intended to be understood. That 
 is to say, Departmental Expenditures, as now shown, are merely 
 Departmental Disbursements, while there may be held in abey- 
 ance for future payment many bills that should be included in 
 the current expenses of the Department. 
 
 Materials and Supplies should not be received unless accom- 
 panied by invoices. After complete checks in all details as to 
 receipts of goods, calculations, extensions, and prices, these 
 invoices should be approved for payment by the properly 
 authorized persons, and entered upon the Voucher Record 
 Book, in which distribution will be made to the accounts 
 afifected by the charge. Reports as to these transactions should 
 be sent, as they occur, to the Comptroller. This method would 
 record obligations of the City entered into by its Departments, 
 maintain control accounts over the Departments, and would 
 show the amounts disbursed and the balances unpaid on account 
 of expenditures to date. 
 
 The Board of Park Commissioners send, with all orders, bills 
 numbered to correspond with the orders. Such form bills are 
 to be used by the firm from whom goods are ordered, in place 
 of their regular invoices. This plan could be installed to advan- 
 tage in the various Departments. If the items composing the 
 charge cover more space than is allotted in the form bill, regu- 
 lar firm bills could be attached, and a recapitulation made on 
 the form bill. This will facilitate checking the unfilled orders, 
 preclude the possibility of duplications of bills, and insure uni- 
 formity of Department records from the time of placing the 
 order until it is sent, with the approved bills, to the Comptroller's 
 Department for payment and proper filing. 
 
 l6 
 
 V 
 
 )■' 
 
 The present practice of charging upon the books of one 
 Department expenditures made for another Department con- 
 fuses the accounts as to the two Departments affected. For the 
 purpose of uniformity and the convenient grouping of closely 
 allied expenditures we recommend that the appropriations be 
 charged to the Department to which the benefits resulting from 
 such expenditure will accrue. 
 
 To illustrate, appropriations made for the purchase of ground 
 or the erection of buildings for school purposes would, in our 
 opinion, be chargeable to the Board of School Commissioners, 
 and they should be held accountable for all disbursements made 
 against such appropriations. 
 
 APPEAL TAX COURT AND CITY COLLECTOR 
 
 The Appeal Tax Court prepares, annually, and charges the 
 City Collector with the entire taxable basis for the ensuing 
 yeaV ; subsequently the Court orders abatements, reassessments 
 and exemptions, and notifies the Collector of these changes, in 
 order that he may properly adjust his accounts. 
 
 The Comptroller should be notified by the Appeal Tax Court 
 of the amount of taxable basis sent to the City Collector at the 
 beginning of the fiscal year. He should also be notified by the 
 Appeal Tax Court of any changes sent to the Collector by 
 reason of abatements, reassessments and exemptions, and the 
 Collector should notify the Comptroller daily of all changes in 
 the amount of taxable basis, resulting from collections. 
 
 The foregoing recommendations are made for the purpose of 
 enabling the Comptroller to establish and maintain Control 
 Accounts over the Collector's Department. 
 
 While the general provisions of Section 147 of the City Code 
 are carried out by the Appeal Tax Court, the failure to notify 
 the Collector of changes made in the records after the entries 
 have been made on his books, leads to confusion, and destroys 
 the balance which should exist between the records of the 
 Appeal Tax Court and those of the City Collector's Department. 
 
 In transmitting the orders of the Appeal Tax Court to the 
 Collector's Department, greater care should be taken in the 
 
 ^7 
 
description and classification of the property referred to, andjn 
 giving the name of the owner, in order to faciHtate the location 
 of the property in the Collector's Department. 
 
 All reclassification of Suburban and Rural property should 
 be made through the Abatement Book and the property reas- 
 sessed as ordered. The present plan of notifying the Collector 
 by use of skeleton bills marked ''Reclassified" should be dis- 
 continued ; it was a source of error and confusion during the 
 period covered by our audit. 
 
 In assessing improvements on Real Estate, included in the 
 Tax Rolls, the original assessment should be abated, and a new 
 basis, including the improvement, should be established. 
 
 The office space devoted to the Appeal Tax Court is insuffi- 
 cient to accommodate the public visiting it for business pur- 
 poses, without crowding the clerks to such an extent as to 
 retard their work and lessen its effectiveness. 
 
 On October first of each year, the City Collector receives 
 from the Appeal Tax Court the new basis of Taxation for the 
 ensuing year beginning January ist. The various assessments 
 on the books at September 30th, 1909, are transferred to the 
 1910 records, furnishing the foundation for the new assessment, 
 upon which is applied abatements of assessments, and reassess- 
 ments for 1910. Upon receiving this information, the Collector 
 prepares his rolls, according to law, by setting up under the 
 names of the owners, the assessments of all property, whether 
 real, personal or securities. After he has recorded this infor- 
 mation, he opens his books on January ist, for collection of 
 Taxes. Each Ledger in the Collector's Department is in charge 
 of a clerk, who, upon application, makes out bills for Tax 
 Pavers. 
 
 Under the system at present prevailing in the Collector's 
 Department, much delay and irritation are caused the taxpayer 
 who has acquired Real Estate since the last assessment. His 
 name may not appear on any of the Ledgers, hence, after the 
 delay caused by an attempt to locate the property, visiting the 
 Appeal Tax Court, and in some cases the Rural and Suburban 
 desks, the property is finally located on the City books, stamped 
 "Rural" or "Suburban." This particular difficulty can be 
 
 18 
 
 S ' 
 
 I 
 
 l> / 
 
 '*\ 
 
 /• 
 
 1' 
 
 I 
 
 
 obviated by having all reclassification of Suburban and Rural 
 property made through the Abatement Book and the property 
 reassessed as ordered. We would suggest that a person be 
 employed to visit daily the office in which deeds are recorded, 
 to ascertain all transfers of Real Estate, and submit this infor- 
 mation to the City Collector, in order that the changes of own- 
 ership may be promptly noted on his books. 
 
 We recommend that each Cash Book contain only the cash 
 entries to be credited to the accounts in the Ledger of cor- 
 responding number. This would afford an easy and efficient 
 means of establishing proof, and locating errors. Under the 
 present method, an audit of this Department entails the expen- 
 diture of more time and money than would be necessary under 
 the plan here suggested. 
 
 Conditions disclosed during the progress of our examination 
 led to improvements in the methods of accounting in this 
 Department as to reporting upon the daily basis collected on, 
 and as to the manner of handling collections applying on old 
 
 Levies. 
 
 Our audit disclosed numerous errors made in posting from 
 the Cash Books to the Ledgers. We have had these errors 
 adjusted on the Ledger, in order to show the condition of the 
 open accounts as at June 30th, 1909. 
 
 Items entered by the Appeal Tax Court upon the Abatement 
 Book should be posted daily in the Collector's Department, and 
 included in the changes reported to the Comptroller's Depart- 
 ment. The Internal Auditors should check in detail the abate- 
 ments and exemptions, in order to guard against duplication of 
 entries such as were found during the progress of our audit. 
 
 The duties of the General Cash Bookkeeper in this Depart- 
 ment are such that greater care should be exercised in their 
 performance, in order that correct settlements of collections 
 may be made with the City and State. 
 
 The present practice of allowing discount to those who pay 
 their taxes within a specified time leads to errors, causes addi- 
 tional labor, and greatly increases the cost of collections. 
 
 In some of our large cities, the allowance of discount has 
 been discontinued with satisfactory results, and it is worthy of 
 
 19 
 
I 
 
 careful consideration whether or not to discontinue the allow- 
 ance of discount in the case of this City. While it may be 
 argued that the allowance of discounts induces earlier pay- 
 ments and obviates the necessity for temporary loans, this argu- 
 ment seems to be answered by the fact that shortening the date 
 from which interest accrues on the unpaid amount has been 
 found to be efficient in securing prompt payments, and saves 
 to the City the amount of discount. 
 
 In our final report on the audit of this Department, under 
 date of October 14th, 1909, we referred to the practice of 
 reporting collections calculated on the basis of collections, 
 rather than on amounts actually collected. It is evident that 
 the present method is productive of much error and loss of 
 time, which could be avoided by reporting amounts actually 
 collected. 
 
 Care should be taken to separate collections into the years 
 in which the levies were made, because different rates prevail 
 for the different years. 
 
 Under the present system a bill covering a certain parcel of 
 property is sometimes paid twice. Refunds covering these 
 overpayments can only be made on order of the Appeal Tax 
 Court, which should advise the Comptroller of the amount of 
 all refunds. 
 
 Errors are also made in calculating the amount of bills, result- 
 ing in overcharges. Refunds covering these overcharges are 
 now made by the City Collector from his "Over" fund. This 
 practice will be discontinued, in the event of our suggestions 
 regarding method of settlements being adopted, and such 
 refunds will then be made through the City Register upon 
 Comptroller's Disbursing Warrants. 
 
 At present, refunds of overcharges for taxes are made by 
 the Collector. We have previously suggested, in this report, 
 that no payments of any kind should be made, except by check 
 of the City Register on warrant of the Comptroller. This class 
 of payments should be included in that suggestion, and the 
 party to whom the refund is made should be charged with the 
 amount by the Collector, the Comptroller issuing his warrant to 
 the Register on receipt of the order from the Collector, thus 
 
 20 
 
 preserving the agreement between his Control Account and the 
 record of uncollected taxes in the Collector's Department. 
 
 All assessments and abatements, maxie by the Appeal Tax 
 Court after October ist, in each year, applicable to the ensuing 
 year's tax rolls, should be properly indexed in bound books, 
 and not, as is now done, on slips of paper W'hich are liable to 
 be lost. 
 
 Personal Property goes into arrears May ist 
 
 Real Property July ist 
 
 State Taxes Jan. ist 
 
 Maryland Corporations paying City taxes. .Jan. ist 
 
 It would greatly facilitate the clerical work in the Collector's 
 Department if provision were made by which all City taxes 
 w ould go into arrears on the same date. 
 
 The Baltimore City Code, 1906, page 547, Section 843, pro- 
 vides as follows : 
 
 "843. All taxes now levied, or which hereafter may be 
 levied in the City of Baltimore, shall be collected within four 
 years from the levying of the same; and the collection of 
 taxes shall not be enforced by law after the lapse of the said 
 four years, and the party from whom said taxes may be de- 
 manded may plead this section in bar of any recovery of the 
 same. Any person enforcing or attempting to enforce the 
 collection of any tax after the lapse of four years, shall be liable 
 to a penalty of twenty dollars for each and every offense, recov- 
 erable before a Justice of the Peace, in the name of the State, 
 one-half to the informer, the other half to the City of Balti- 
 more." 
 
 In the majority of cases, taxes long in arrears consist of those 
 on personal property. This seems to be due, in a large measure, 
 to the lack of mandatory requirements as to their prompt col- 
 lection. By reason of the delay, many things happen which 
 make it impossible to collect, viz : death or removal from the 
 City, business failures, change of ownership, etc. 
 
 By the time collection is barred, there is a large amount of 
 personal taxes lost to the City. Under the present system the 
 accounts fail to show the large amount of loss entailed each 
 
 21 
 
 I 
 
 ''( 
 
'I 
 
 year upon the City by the ineffectiveness of its present methods 
 of collection. 
 
 Each year all personal taxes remaining unpaid over a period 
 of four years should be abated by the Appeal Tax Court, if 
 uncollectible and having been previously included in the credit 
 to revenue under the treatment hereinbefore recommended, the 
 amount should be charged against revenue, thus showing each 
 year the loss resulting to the City from the failure to collect. 
 
 In regard to the personal taxes which have not been barred, 
 some different method should be adopted for their collection as 
 soon as possible after they become delinquent. 
 
 At present, we can suggest no more effective way than to 
 appoint an attorney-at-law on a yearly salary to act as an 
 assistant to the Collector. It should be his duty to enforce the 
 payment of all delinquent personal taxes, by the use of every 
 legal means. 
 
 The Tax Bailiffs are appointed by the City Collector, and are 
 authorized to superintend the collection of taxes in arrears. 
 By Ordinance 66, June i8th, 1900, and Ordinance 40, January 
 nth, 1904, it is provided that "The bailiffs .... shall receive 
 as compensation the three per centum added to bills for taxes 
 in arrears and collected by the City Collector under the law, 
 to be divided equally among them." 
 
 The amount to be divided is ascertained from the Collector's 
 records, and credited to Tax Bailiffs' Account on the Comp- 
 troller's Ledger. Payments are regularly made through the 
 Comptroller's Department, on Disbursing Warrants, thus bal- 
 ancing the account. 
 
 The present plan of handling this matter is good and should 
 be continued. 
 
 Collections made on assessments levied for Opening and 
 Condemning Streets should be reported to the City Comptroller 
 and collections made for Grading, Paving and Curbing Private 
 Alleys, Footways, etc., should be reported to the City Comp- 
 troller and to the City Engineer. 
 
 There are at present outstanding on the Ledger for Opening 
 and Condemning Streets, in the City Collector's Department, 
 charges made against the Mayor and City Council, for a large 
 
 22 
 
 ^A 
 
 \ 
 
 ^ 
 
 amount. These charges were made from information fur- 
 nished by the Commissioners for Opening Streets and the City 
 Engineer, in order to show the cost to the City of such expen- 
 ditures. We recommend that the amounts now charged be 
 written off at the end of the present fiscal year, and that in 
 future no charges be made to the Mayor and City Council for 
 such work on the City Collector's books. 
 
 COLLECTOR OF WATER RENTS \XI' LICENSES 
 
 We would suggest that proper control be established over 
 the Revenue of this Department. To bring out more clearly 
 the prevailing conditions, and our suggestions regarding them, 
 we shall refer to them under three heads, viz : Flat Rate Water 
 Rents, Meter Rate Water Rents, and Licenses. 
 
 The Flat Rate charges are made up as of the first day of 
 January of each year, and charged upon the departmental books 
 against the consumers. The Water Engineer should report the 
 total of such charges to the Comptroller, in order that the 
 Comptroller may know, from his records, what is the amount 
 of Flat Rate Water Rents to be collected. These charges may 
 be augmented or reduced in amount as new service is installed, 
 or as present service is discontinued ; but in either case, suit- 
 able notification should be sent to the Comptroller, preferably 
 from the Water Engineer's Office. 
 
 Meter readings are made by the Water Engineer's Depart- 
 ment; and we suggest that the aggregate amount of charges 
 based on Meter readings and rates be reported by the Water 
 Engineer to the Comptroller, the detail of such charges being 
 entered upon the books of the Collector of Water Rents and 
 Licenses, thus getting the greatest amount of information from 
 sources other than the Department of Collector of Water Rents 
 and Licenses. 
 
 All charges for turning water on or off, and for services in 
 the nature of plumbing, etc., are to be made as they accrue, and 
 record of same is to be sent to the Comptroller, with the state- 
 ment of regular charges or abatements, shown separately, in 
 
 23 
 
 V 
 
order to preserve proper control over the several kinds of 
 Revenue. 
 
 The Collector will deposit daily all receipts with the City 
 Register, reporting to the Comptroller, both as to the amount 
 and as to the nature of the collections, w^hether on Flat Rate, 
 Meter Rate, Plumbing, or other sources. 
 
 At any time, the amount of Water Rents uncollected on the 
 Comptroller's Ledger should be reflected in detail in the 
 accounts upon the books of the Collector of Water Rents and 
 Licenses, which condition would tend to lessen, and aid in 
 locating errors, wdiether of a clerical nature or intended to 
 cover fraud. 
 
 Licenses are issued only upon receipt of cash, and the safe- 
 guards thrown about the revenue returns from this source, 
 and the recording of same, seem to minimize the possibility of 
 error or fraud. Cash received on account of the issue of 
 Licenses should be deposited daily w^ith the City Register, and 
 notification sent to the Comptroller. All records in the office 
 of the Collector of Water Rents and Licenses should be subject 
 to frequent examinations by the Comptroller's Office, through 
 its Internal Auditors. 
 
 During the progress of our examination of the records of 
 this Department, there has been continued and well-directed 
 eflFort on the part of the Collector of Water Rents and Licenses 
 and his assistants to improve the accounting methods in his 
 Department in all directions. 
 
 The transfer from the Comptroller's Department of all col- 
 lections, now made by him, to this Department, as previously 
 suggested, and the adoption of the foregoing recommendations 
 will further increase its efficiency, extend its usefulness and 
 increase its importance as a City Department. 
 
 BALTIMORE CITY JAIL 
 
 The present system of recording the transactions in this 
 Department furnishes an efficient check upon the purchase of 
 supplies and upon expenses. 
 
 24 
 
 /; 
 
 The original numbered order is returned with the invoice 
 covering the purchase and attached to the stub from which it 
 was taken, for the purpose of conveniently checking up the 
 unfilled orders. 
 
 We suggest that, upon its receipt with the invoices, the order 
 be checked with the stub of the Order Book, and that the 
 invoice, with the order attached, be sent, with the Disbursing 
 Warrant, to the Comptroller. This would serve the same pur- 
 pose of the method at present in use, and, at the same time, 
 complete the vouchers filed with the Comptroller. 
 
 It is unnecessary to keep duplicate invoices in this Depart- 
 ment ; and we recommend that the practice be discontinued. 
 Such information contained in the original invoices, as may be 
 desirable, can be kept in memorandum books. 
 
 A Voucher Record Book should be kept for recording all 
 invoices after they have been properly approved as to quantity, 
 prices and extensions. It should contain columns with head- 
 ings representing each departmental expenditure, the amount 
 appropriated for such expenditure being included as a part of 
 the headings. The footing of each column deducted from the 
 amount of appropriation shown in the heading would show at 
 all times total expenditures incurred, whether paid or unpaid, 
 and the balance representing unexpended appropriation. No 
 goods should be received unless accompanied by the invoice 
 and the original order. 
 
 The present method of accounting for "Prisoner's Cash" and 
 ^'Prisoner's Shop Earnings" is good, and no changes are recom- 
 mended. 
 
 Neither the books and records of this Department, nor the 
 jail records, are adequately protected from fire or other causes 
 of destruction. Jail records, covering a period of many years, 
 and compiled at no small expense and labor, are filed in wooden 
 filing cases. These records are extensive and valuable, and it 
 would be almost impossible to duplicate them, should they be 
 destroyed. 
 
 25 
 
 H> 
 
I 
 
 BAY V!F\\^ ASYLUM 
 
 Our general suggestions covering Departments are partially 
 carried out in this Department, as the accounts are now kept. 
 The present form of Invoice Book could easily be made to con- 
 form to the Voucher Record Book; but a Revenue Record 
 Book should be installed in place of the present Cash Book. 
 
 The keeping of a Ledger in this Department could be dis- 
 pensed with, and the information, required by the Superinten- 
 dent and Board of Supervisors, submitted on blanks provided 
 for the purpose. The Store Room Book is a necessary record 
 and is, at present, adequate to the needs of the office. Stores 
 are now distributed only upon proper requisition. A complete 
 file of such requisitions should be kept as a part of the depart- 
 mental records. 
 
 A few journal entries are necessary at the end of each month, 
 and we suggest that they be made upon loose leaf journal 
 sheets, properly signed, and regularly filed, and not upon 
 Voucher Record or Store Room Books. 
 
 All invoices approved for payment should be covered bv Dis- 
 bursing Warrants, which should be numbered, and entered in 
 consecutive order in the Voucher Record Book. 
 
 BOARD OF i IRE COMMISSIONERS 
 
 The books and accounts in this Department supply the neces- 
 sary information, keep a proper check on all receipts and dis- 
 bursements, are accurately and neatly kept, and reflect credit 
 upon those in charge of the work. 
 
 The principal books in this Department conform closely to 
 our suggestions as to a Voucher Record Book, subject to slight 
 modifications. The present Cash Book should be dispensed 
 with, as all information concerning disbursements now obtained 
 from this book can be incorporated in the Voucher Record 
 Book. Totals of Expenditures should be forwarded from 
 month to month (and not carried to a recapitulation sheet, as 
 at present), thus showing at any time the amount of the appro- 
 priation expended and the amount unexpended. The total 
 
 26 
 
 :m 
 
 w 
 
 expenditures for salaries, expenses and special appropriation 
 accounts as now shown on the Cash Book, and used in checking 
 with the Comptroller's Office, can be shown to better advantage 
 on forms speciallly prepared from the Voucher Record Book. 
 
 Expenditures made for the purchase of lots, the construction 
 of buildings, etc., for this Department are now charged on the 
 books of the Inspector of Buildings. We recommend that the 
 appropriations for such purposes be charged to this Depart- 
 ment, in which case the expenditures should be entered on its 
 books. 
 
 To cover the receipts of the Department, the general form 
 of Revenue Record Book, arranged for analysis of Revenue, 
 will be a sufficient provision for recording the receipts of this 
 Department. 
 
 The Company Expenses Book, showing disbursements on 
 account of each Company, can be kept as a Departmental 
 Record, and while the detail cannot well be eliminated, the 
 book itself can be of a more convenient size, as we have already 
 suggested. 
 
 BOARD OF PARK Cf)MMISSK)NI-:RS 
 
 The method of recording receipts and disbursements of this 
 Department is generally good, especially in the matter of pur- 
 chases. The present practice is to charge an account from the 
 requisition, before the invoice and the goods named in such 
 requisition have been received and the invoice approved. This 
 defective method will be overcome by the installation of the 
 Voucher Record Book outlined in our general suggestions, into 
 which entry of the invoice will not be made until approved. 
 
 As it is necessary to show the distribution of expenditures 
 in numerous accounts, it will be advantageous to analyze such 
 expenditures in subsidiary books, which will be under the con- 
 trol of the Voucher Record Book. 
 
 The Revenue Record Book should show all amounts of Reve- 
 nue to be collected, and should be arranged to show readily 
 items paid and unpaid. In our opinion the control of Rent 
 Revenue should be from sources outside the Department. This 
 
 27 
 
» 
 
 } 
 
 can be accomplished in a manner that will conform to the 
 general idea of controlling the Revenue of the City. 
 
 The plan of having regularly numbered orders with form 
 bills attached, which bills are to be filled out in lieu of the regular 
 bills of creditors, has many points in its favor, and might well 
 be adopted by other Departments. 
 
 The receipts of this Department are large in amount, and 
 should be verified by the Comptroller, through his Internal 
 Auditors, at frequent intervals. 
 
 BOARD UF SCHOUl COMMISSIONERS 
 
 The records of Disbursements for this Department are kept 
 in two books, viz : "Register of Vouchers" and "Appropria- 
 tions and Expenditures." As the items and totals are posted 
 each month from the former to the latter, we would suggest 
 that the proposed "V^oucher Record Book" combine the uses 
 of the two books above mentioned. Further distribution of 
 the amounts of purchases for the several schools may be kept 
 as at present, as departmental memoranda. 
 
 Expenditures made for the purchase of lots, the construc- 
 tion of buildings, etc., for this Department are now charged on 
 the books of the Inspector of Buildings. We recommend that 
 the ai)propriation for such purposes be charged to this De- 
 partment, in which case the expenditures should be entered 
 on its books. 
 
 At present the receipts of the Department are kept only in 
 memorandum form, and not on the books of record. An effort 
 was made to check the receipts for tuition of non-resident pupils, 
 but there is no basis for doing so, as the office memoranda is 
 made up from receipts slips returned to them by the Comptrol- 
 ler's Office, and, except for clerical errors, should agree with the 
 Comptroller's records. All recei])ts should be a matter of 
 record in the Department, and should be controlled by accounts 
 on the Comptroller's books. Information regarding these re- 
 ceipts should be recorded in a Revenue Record Book, the instal- 
 lation of which we recommend. 
 
 28 
 
 CITY ENGINEER 
 
 The Voucher Record in this Department should show dis- 
 tribution of expenditures classified into a small number of gen- 
 eral accounts and control a subsidiary record of the expendi- 
 tures, classified into any desired number of accounts. 
 
 All items of Revenue should be distributed upon the Revenue 
 Record Book, showing their sources and whether collected or 
 accrued. It should also provide for control over items received 
 for Private Paving and Inspection, in order that these items 
 may be easily accounted for upon the Private Paving and 
 Inspection Ledger. 
 
 Greater care in recording the accounts relating to Private 
 Paving and Inspection is desirable, and it would seem that 
 a part of the time expended in the work of the sub-departments 
 could be better directed towards having complete records in the 
 general books of the Department. The present method causes 
 unnecessary duplication of accounts. We suggest that reports 
 be made to the Comptroller of all permits issued and amounts 
 to be collected for Private Paving and Inspection. This will 
 form a basis of a Control Account, as outlined in our general 
 suggestions. All charges and credits should be posted to the 
 Pr'ivate Paving and Inspection Ledger. For all work of this 
 nature, bills should be made without exception and entered 
 upon the Private Paving and Inspection Ledger, and the Comp- 
 troller notified in order that he may know the adjustments in 
 the Comptroller's Account are necessary No bills need be 
 entered in the sub-departments, as all needed information could 
 be obtained from the Department In this way the Ledger 
 would reflect, at all times, both the amounts that are subject to 
 a refund, upon application, and amounts due the City for work 
 done in excess of the estimated cost If desirable, the Private 
 Paving and Inspection Ledger could be so kept as to show 
 information respecting the cost of Private Paving and Inspec- 
 tion, the amount of cash received and the amounts outstanding. 
 Private Alleys, Footways and Sundry Streets are paved by 
 the City Engineer and paid for by owning or abutting property 
 holders. Collections to cover the cost are made by the City 
 
 29 
 
 M 
 
v 
 
 » 
 
 Collector. Assessments should be made up by the City Engi- 
 neer's Office, and both the Comptroller and the City Collector 
 should be notified of the amounts to be collected. Entry of the 
 amount collected, on the City Engineer's Books, is unnecessary 
 as all his Department needs is to be advised of the collection of 
 the assessments in order that he may begin work. 
 
 A record should be kept of Public Franchises and Minor 
 Privileges issued by this Department, and notification of same 
 sent to the Comptroller. Should our recommendations be 
 adopted regarding the collection of these Public Franchises 
 and Minor Privileges by the Collector of Water Rents and 
 Licenses, notice, upon blanks provided for that purpose, should 
 be sent to the Comptroller, in order that he may maintain con- 
 trol over the receipts from same as reported to him by the Col- 
 lector of Water Rents and Licenses. 
 
 CITY TTH! 
 
 
 This Department purchases stationery and office supplies for 
 the various City Departments and keeps a record of all such 
 purchases. 
 
 There should be provided for his use a Voucher Record 
 Book, with columns, showing under appropriate headings, the 
 various Departments chargeable with purchases, the appropria- 
 tions for such purchases being included in the heading of the 
 column. 
 
 We suggest the discontinuance of the present practice of 
 entering upon the City Librarian's books invoices that are paid 
 by warrants issued from the Department for which the pur- 
 chases were made, thus recording on his books only those 
 invoices which are chargeable against his appropriation. 
 
 These suggestions are intended to provide for recording 
 transactions until such time as our recommendations relative 
 to a General Purchasing Agent are adopted. 
 
 A Revenue Record Book providing for the distribution of 
 the revenue should be installed in the Department. 
 
 30 
 
 s J 
 
 i 
 
 ) '^1 
 
 COMMISSIONER OF HEALTH 
 
 While our instructions did not authorize us to make an audit 
 of the accounts of this Department, we have made a cursory 
 examination of the methods therein, for the purpose of sug- 
 gesting a uniform system of accounting for the City. 
 
 We suggest the installation of a Voucher Record Book to 
 cover the general expenditures of the Department. Subsidiary 
 books can be used to make further analysis of the expenditures, 
 such books being subject to control by the Voucher Record 
 Book. 
 
 The Revenue of the Department is not at present under 
 proper control, and some changes should be adopted. There 
 should be installed a Revenue Record Book, so arranged as to 
 give the sources of the Revenue, and so kept as to show, at all 
 times, the total Departmental Revenue. Such further distribu- 
 tion of revenue as may be desired can be provided for by sub- 
 sidiary books, controlled by the Revenue Record Book. 
 
 COMMISSIONER OF ^TRFFT CI 
 
 I I 
 
 \ I 
 
 G 
 
 The use of a Ledger in this Department can be discon- 
 tinued and the use of a Voucher Record Book, adapted to the 
 needs of the Department, substituted. 
 
 A large proportion of the expenditures of the Department 
 is made for wages. The method used and the precautions taken 
 relative to disbursements of this nature are good ; the records 
 of the Department will be more comprehensively shown through 
 the installation of the Voucher Record Book. 
 
 We would suggest that amounts paid out of the Emergency 
 Fund be charged to the account for which the expenditure is 
 made. To that end a transfer from the Emergency Fund to the 
 account affected should be made and properly recorded and 
 notice of the same should be sent to the Comptroller. 
 
 Notice should be sent to the Comptroller, upon blanks, of all 
 bills rendered for services performed for private parties or 
 contractors. The sale of street dirt should also be regularly 
 
 31 
 
reported to the Comptroller that he may require a strict 
 accounting for the moneys to be turned in to the City Register. 
 A Record Revenue Book should be installed and so arranged 
 as to show the sources of all revenue. 
 
 COMMISSIONERS OF FINANCE 
 
 The transactions of the Commissioners of Finance are not 
 now recorded on the books of the Comptroller's Department 
 with sufficient detail. In our o])inion, this is a weakness in 
 the general system of accounts which should be remedied. We 
 would suggest that such accounts be opened on the General 
 Ledger in the Comptroller's Department, as will show the 
 aggregate transactions, which have been recorded upon the 
 books of the Commissioners. The Clerk of the Commissioners 
 should report all such transactions to the Comptroller. 
 
 The books and records of the commissioners are not suited 
 to the needs of the Department. We recommend the discon- 
 tinuance of the present form of Journal, the abolition of the 
 practice of journalizing all cash transactions, the installation 
 of a Cash Book, arranged so that postings need be made but 
 once each month, and the adoption of a Sinking Fund Record 
 Book, for recording the Stock held in each fund, and from 
 which the Annual Report of the Commissioners, relating to 
 these matters, can be readily made. 
 
 C( r ! \fTSSIONERS FOR OPENING STREETS 
 
 The Voucher Record Book, at present in use in this Depart- 
 ment, needs only slight modification to conform to the general 
 Voucher Record Book suggested by us. A general distribution 
 of expenditures will be shown on this book, further analysis 
 being made in a subsidiary book, kept in control by the book of 
 original entry. 
 
 Some of the bills incurred in the opening and closing of 
 streets by condemnation (principally advertising bills) are ren- 
 dered to and approved by this Department. Such bills could be 
 
 32 
 
 approved for payment by this Department, if necessary, though 
 it seems that to enter them upon their books results only in 
 duplication of work, since they are not provided for by appro- 
 priations for this Department. Assessments levied for Opening 
 and Condemning Streets should be reported to the City Comp- 
 troller, in order that control may be established over the amount 
 to be collected by the City Collector. 
 
 Installation of a Revenue Record Book will eliminate the 
 present system of recording sales of old material, and furnish 
 a better and more accessible record of revenue received and 
 accrued. 
 
 DEPARTMENT OF LEGISLATIVE REFERENCE 
 
 A Voucher Record Book, providing for a detailed distribution 
 of salaries and expenses, would be a great improvement over 
 the present ledger, furnishing as it does, only a limited amount 
 of information. 
 
 The present books show the amount of Expenditures which, 
 for the purposes of a yearly report, must be analyzed. The 
 present method will show the result of such analysis at all 
 times, without further effort than the proper entry and distribu- 
 tion of all invoices. 
 
 ELECTRICAL COMMISSION 
 
 We have found the records of this Department to be accu- 
 rately and neatly kept. We recommend the use of a Voucher 
 Record Book and a Revenue Record Book. 
 
 The Voucher Record Book should be so arranged as to give 
 in detail all information now contained in the two Cash Books, 
 and to admit of a separate and distinct accounting for expendi- 
 tures made from appropriations from the General Fund and 
 expenditures made out of the appropriations from the Conduit 
 Loan. Further distribution of the expenditures, for the pur- 
 pose of arriving at the cost of construction and maintenance, 
 can be continued in the present form or in modified form, 
 
 33 
 
t 
 
 though such distribution should be under control of the 
 Voucher Record Book. 
 
 The Revenue Record Book should embody all revenue of the 
 Department, whether credits to Construction Expenses or 
 Rentals from Conduit space, and should be so arranged as to 
 show both receipts and accruals. 
 
 Information relative to the rental of duct space is at present 
 carefully recorded in separate books. This manner of keeping 
 such information is desirable and should be continued. The 
 proposed form of Revenue Record Book would provide for a 
 control over all such items. 
 
 gross amount of receipts should be reported to the Bath Com- 
 missioners, and should be deposited in gross in the City Treas- 
 ury as Revenue of the Department. 
 
 All records of expenditures should be kept in the proposed 
 Voucher Record Book, arranged in such a manner as to give 
 more complete information than is now shown on the present 
 Receipt and Disbursement Book. The Revenue Record Book 
 will give a full record of all Revenue of the Department classi- 
 fied acording to nature and source. The Revenue should be 
 controlled through the use of forms to be submitted to the 
 Comptroller's Department. 
 
 FREE PUBLIC BATH COMMISSION 
 
 The books and records kept by this Department, during the 
 earlier portion of time covered by our examination, were very 
 crude. This state of affairs was mainly due to the fact that the 
 Department was new. There has been a general improvement 
 in tlie manner of accounting for receipts and disbursements, 
 but these methods are still inadequate to meet the requirements 
 in a satisfactory manner. 
 
 It would seem necessary, because of conditions peculiar to 
 this Department, that small bills for services, etc., be paid at 
 the several Bath Houses at the time such service is performed. 
 Heretofore, the keeper of the Bath House has been permitted 
 to make small payments of that nature out of the receipts for 
 the day or week, making a report to the Department of the 
 nature of the expenditure, and submitting vouchers covering 
 such expenditures. We suggest that each Bath House Keeper 
 be allowed a small petty cash fund sufficient for his require- 
 ments, and that all petty expenditures be made from this 
 fund, which will be replenished to the extent of his expendi- 
 tures, as shown by receipted vouchers, upon a Comptroller's 
 Disbursement Warrant. The object of this plan is to keep a 
 separate account for all receipts and expenditures. In other 
 words, all expenditures should be made upon Warrants drawn 
 and passed through the Comptroller's Department, and the 
 
 34 
 
 HARBOR BOARD 
 
 The general distribution of expenditures made through this 
 Department should be shown in Voucher Record Books, which 
 in form, will not differ greatly from the books of record now in 
 use. As a part of the expenditures are made from appropria- 
 tions set aside from the Burnt District Improvement Loan, it 
 would be well to record them separately (as is now done). 
 For that purpose, two books of record for expenditures should 
 be used, viz: ''Voucher Record Book— Harbor Board" and 
 "Voucher Record Book— Burnt District Improvement Loan." 
 
 A record of the Revenue now kept on the unruled pages of 
 the Ledger, would be more systematically accounted for by a 
 Revenue Record Book, arranged to show the several sources 
 from which Revenue is derived. 
 
 If further distribution of expenditures is desired for the 
 information of the Department, it can be made in subsidiary 
 books, kept in proper control by the Voucher Record Book. 
 
 INSPECTOR OF BUILDINGS 
 
 The use of the General Ledger and Voucher Stub Books 
 will be unnecessary when a suitably prepared Voucher Record 
 Book is installed. The purpose for which the so-called 'Indi- 
 
 35 
 
vidual Ledger" is now used (the distribution of items of 
 expenditures) can be carried out in a subsidiary book conform- 
 ing to the general i)lan outUned in our remarks and suggestions 
 relating to the several Departments. This subsidiary book 
 should be under control of, and in agreement with, the records 
 on the X'oucher Record Book. 
 
 Durino- the period covered bv our examination, we found a 
 number "of charges on the books of this Department, which 
 were not covered bv invoices or warrants in the Department. 
 These items were charges against appropriations made for 
 lots and buildings for new Schools or Engine Houses, etc., and 
 in the majoritv of cases, were found to be for the purchase of 
 the lots, examination of titles, recording of deeds, etc. ihe 
 warrants covering such expenditures were properly approved 
 and passed through the Comptroller's Office. The record of 
 these charges was placed upon the books of the Department of 
 Inspector of Buildings upon information received from the 
 Comptroller's Office at the time of checking up the accounts. 
 Such appropriations were presumably charged to this Depart- 
 ment because of the fact that the construction work was under 
 the supervision of the Inspector of Buildings. For the purpose 
 of uniformity, and the grouping of expenditures that are 
 closely allied', and the better accounting for all moneys 
 expended for specific purposes, we are of the opinion that pro- 
 vision should be made whereby all appropriations made for 
 Schools for the Fire Department, etc., for whatever purpose, 
 should be charged against the Board of School Commissioners, 
 the Board of Fire Commissioners, etc., and all warrants for 
 such expenditures should be drawn and finally approved by the 
 Department for which such appropriation is made. If the 
 Inspector of Buildings has charge of the construction work on 
 new buildings, it would be necessary to have the bills or esti- 
 mates passed upon first by his Department, to be forwarded, 
 for final approval and payment, to the Department whose 
 appropriation is affected thereby. In short, all bills, by whom- 
 soever contracted, should be sent for final approval and for 
 payment to the Department held accountable for the disburse- 
 ment of the funds. 
 
 36 
 
 Since the new building code provisions became effective; 
 revenue from this Department has been small, and could be 
 readily and comprehensively shown on the proposed Revenue 
 
 Record Book. 
 
 A record should be kept of Public Franchises and Elinor 
 Privileges issued by this Department, and notification sent to 
 the Comptroller. If our recommendations regarding the col- 
 lections covering these Public Franchises and Minor Privileges 
 are adopted, notice should be sent upon blanks provided for that 
 purpose to the Comptroller to maintain control over the receipts 
 from same as reported to the Comptroller by the Collector of 
 Water Rents and Licenses. 
 
 LAW DEPARTMENT 
 
 The accounts that have been kept in this Department are in 
 the nature of memoranda, and they furnish little information 
 as to expenditures. No records of receipts have been kept. 
 
 A Voucher Record Book and a Revenue Record Book should 
 be installed for the use of the Department, and not only should 
 the revenue be properly recorded upon departmental books, but 
 complete control over the same should be exercised in a manner 
 conforming to our general suggestions covering this subject. 
 
 No record is kept of salary disbursements, as the employees 
 of this Department are paid under the General Pay Roll made 
 up in the Comptroller's Department. 
 
 MARKET MASTER 
 
 As suggested in our remarks relating to the Comptroller's 
 Department, the supervision of the accounts, the receipts of 
 moneys, and other duties devolving upon the Market Master, 
 should be placed under the direction of some other City Depart- 
 ment. Market Revenue is most closely allied to the Revenue 
 handled by the Collector of Water Rents and Licenses, and we 
 would suggest that Department as the most appropriate to 
 receive and account for revenue from Markets. 
 
 37 
 
i 
 
 As is evidenced by the results of our examination of the 
 Market Master's records, there is need of a proper control over 
 the Revenue from Markets. Naturally, a more careful 
 accounting is now made of such Revenue, since 'rregular>t,es 
 were found in this Department, though much is still to be 
 desired in the way of effecting efficient safeguards. 
 
 Licenses should be issued by a properly authorized person 
 in the office of the Collector of Water Rents and Licenses, in 
 a manner similar to that in which other licenses are issued, 
 though, in the case of the Markets, additional checks could be 
 had through the proper handling of the applications made to 
 the Assistant :Market Masters. 
 
 Rentals to be received should be under the close supervision 
 
 and control of the Collector of Water Rents and Licenses, die 
 
 Assistant Market Masters making all such collections. 
 
 The present method of accounting for Per Diem receipts 
 
 appears to be practical. 
 
 The Internal Auditors from the Comptroller's Department 
 
 should visit the markets periodically for the purpose ot ven- 
 
 fying receipts. 
 
 MAYORALTY 
 
 No record is kept for disbursements for salaries, as those 
 payments are included in the General Pay Roll from the 
 Comptroller's Department. 
 
 The use of a Voucher Record P.ook is recommended, and it 
 should be so arranged as to show readily an analysis of the 
 amounts expended for the Department. 
 
 Thouo-h the Revenue is small, and in the nature of refunds, 
 it would be well, for the sake of uniformity, to have a Revenue 
 Record Book, in which all such amounts should be entered, and 
 distributed to the proper accounts. 
 
 An Employee's Bond Register should be kept in which 
 should be recorded all bonds given by the City Officials for 
 the faithful performance of their duties. 
 
 i 
 
 J; 
 
 'I 
 
 lit 
 
 ,i 
 
 
 'I 
 
 i 
 
 
 '\ 
 
 SEWERAGE COMMISSION 
 
 The books of this Commission are being regularly audited 
 by public accountants, and we were not authorized to audit 
 them. In our opinion these books should be brought under the 
 City's general accounting system, and subject to the same 
 periodical examination by the Internal Auditors of the Comp- 
 troller's Department as has been suggested for the other De- 
 partments. 
 
 A Voucher Record Book, suggested for use in Departments 
 having a somewhat similar class and volume of expenditures, 
 can be used to advantage in this Department. Such other 
 records as may be required can be installed, in harmony with 
 the general system outlined by us. 
 
 SUPERINTENDENT OF LAMPS AND LIGHTING 
 
 The accounting methods in this Department afford a thor- 
 ough and satisfactory check upon all items of Revenue and Dis- 
 bursement. Careful record is made of all expenses incurred, 
 it is evident that all bills are closely scrutinized, and the trans- 
 actions are fully recorded upon the books, which are carefully 
 and neatly kept. Detailed information concerning the work 
 or the records of the Department is accessible and easy of inter- 
 pretation. 
 
 The Book of Record, covering Expenditures for this De- 
 partment, conforms so closely to the general form of Voucher 
 Record Book, recommended for use in the several Departments, 
 that only slight changes need be suggested. 
 
 The use of the present Cash Book can be eliminated, the 
 revenue of the Department being shown with such distribution 
 as may be required upon the Revenue Record Book suggested 
 by us. 
 
 SUPERINTENDENT OF t^! BLIC BUILDINGS 
 
 Some unnecessary duplication of work can be eliminated in 
 this Department through the installation of an appropriately 
 ruled and arranged Voucher Record Book. A further analysis 
 
 38 
 
 39 
 
of the expenditures than can be easily shown on this book seems 
 to be desirable, and, to that end, a subsidiary book, controlled 
 by the Voucher Record Book can be advantageously used. 
 
 Proper control of the Revenue of the Department can be 
 obtained in the manner outlined in our general remarks cover- 
 ing this subject, and distribution of the Revenue can be made 
 upon a Revenue Record Book arranged for that purpose. 
 
 SUPERVISORS OF CITY CHARITIES 
 
 There has been, in this Department, no attempt to keep a 
 complete record of the transactions of Revenue and Expense; 
 rather have their efforts been directed toward making memo- 
 randum entries for the information of the office, and in the 
 case of expenditures, for keeping within the amounts appro- 
 priated. Not all bills have been rendered in duplicate, nor 
 have the duplicates, except in the case of some hospitals and 
 the dispensaries, been preserved as office records, only those 
 being retained that might be of use for reference. 
 
 We suggest that a Voucher Record Book be installed, in 
 which will be recorded, and properly distributed, all disburse- 
 ments made for the Department. 
 
 The Revenue of this Department is derived principally from 
 reimbursements for board of and medical attendance to patients 
 in the several institutions under the supervision of the Depart- 
 ment. During the period covered by our examination the 
 amount of such revenue was not under control. 
 
 Records of all Revenue of the Department should be made 
 upon a Revenue Record Book prepared with a view to its par- 
 ticular needs. These records, in connection with the installa- 
 tion and proper handling of bills and forms and the necessary 
 notification to the Comptroller, should establish complete con- 
 trol over all Revenue. 
 
 TOPOGRA 
 
 1 1, 
 
 SURVEY 
 
 A more comprehensive view of the record of both Expen- 
 ditures and Revenue will be had through the installation of a 
 suitably prepared Voucher Record Book and Revenue Record 
 
 .1 
 
 / ; 
 
 ,1) 
 
 Book. All records, at the present time, are in the nature of 
 memoranda, and do not readily furnish the information desired. 
 The proposed method will overcome that objection, while, if 
 greater detail is desired in the Department, subsidiary books 
 can be devised to meet such requirements. 
 
 WATER ENGINEER 
 
 A Voucher Record Book should be installed in this Depart- 
 ment, which will combine the uses of the Purchase Journal, 
 Disbursement Cash Book and Accounts Payable Cards. 
 
 This Voucher Record Book should be so arranged as to pro- 
 vide for the several accounts for which general appropriations 
 are made and also for the accounts for which appropriations 
 are made from Loans. Further distribution of these accounts 
 can be made in subsidiary books. 
 
 The information now obtainable from the Warrant Book, 
 Appropriation Journal and Appropriation Ledger will be sup- 
 plied b}' the Voucher Record Book. 
 
 As we have suggested that all Assets and Liabilities of the 
 City be shown upon the Comptroller's General Ledger, it will 
 no longer be necessary to keep the information in this Depart- 
 ment, and the use of the General Ledger can be eliminated. All 
 disbursements should be so reported to the Comptroller as to 
 give him full information concerning the charge, whether it 
 be an item of expense, or an item to be placed upon the books 
 as an Asset of the City. 
 
 We recommend that a Revenue Record Book be installed, 
 and that all departmental revenue be recorded therein, showing 
 its source. The Comptroller should be notified of all Revenue 
 as it accrues, in order that he may make proper entries thereof. 
 As outlined in our general recommendations, it should be 
 required that payment be made direct to the City Register by 
 the party from whom it is due, and the Comptroller promptly 
 advised of such payments. 
 
 40 
 
 41 
 
The method of handhng material and suppHes in this De- 
 partment is hicrhlv commendable, as is evidenced by the slight 
 adjustments necessary between the Department records and the 
 balance of stores on hand according to a physical mventory 
 taken at the end of the fiscal year. 
 
 We suggest that items now included in the records of this 
 Department as revenue, but which are received by the Collector 
 of Water Rents and Licenses, be regarded as revenue of the 
 latter Department. 
 
 The Comptroller will be advised by the W^ater Engineer's 
 Department of the charges made, and by the Collector of Water 
 Rents and Licenses of the amounts received, and will thus have 
 separate and independent sources of information by which 
 control of the Revenue will be maintained. 
 
 DEPARTMENTS UNDER STATE CONTROL 
 
 These Departments include the Board of Police Commis- 
 sioners, Board of Police Examiners, Coroners, Courts, House 
 of Correction, Liquor License Commission and Supervisors of 
 Elections. 
 
 Control Accounts cannot be established over these State 
 Departments, because the City has no authority to regulate the 
 manner in which the State shall keep its accounts nor the form 
 in which it shall render an accounting to the City. 
 
 The Revenue and Expense accounts of these Departments 
 will of necessity be kept on the Comptroller's books, as at 
 present. The Comptroller requires proper Pay Rolls and other 
 vouchers covering all expenditures. 
 
 These Departments should be requested to furnish complete 
 information concerning items of revenue, and it should be a 
 part of the duties of the Internal Auditors to verify these 
 receipts as far as permitted by the State to do so. 
 
 We desire to thank the Heads of the Departments, and all 
 with whom we came in contact during the progress of the 
 
 42 
 
 examination, for the courteous manner in which w^e were sup- 
 plied with all data necessary to facilitate our work. 
 
 Respectfully submitted, 
 
 THE AMERICAN AUDIT COMPANY, 
 
 Bv R. M. COULBOURN, 
 
 Resident Manager. 
 
 We concur : 
 
 Robert Atkins, C.P.A. 
 Thos. p. Howard, C.P.A. 
 
 Approved : 
 
 F. W. Lafrentz, C.P.A., President. 
 
 Attest : 
 
 A. F. LafrEntz, Asst. Secretary. 
 
 (Certified Public Accountants under 
 the laws of the State of New York.) 
 
 43 
 
THE Am'MiCXS AIDIT ComW'^Y 
 
 KEYSER BUILDING 
 
 BALTIMORE, MD., November 1, 1909 
 
 To the Honorable Mayor and City Council 
 
 of the City of Baltimore, Maryland. 
 
 Gentlemen : 
 
 We have audited the books of the City Comptroller's De- 
 partment for the period from January ist, 1907, to June 30th, 
 1909, and submit herewith our report, including Exhibits and 
 Schedules as follows: 
 
 Exhibits: 
 "A" 
 
 "B" 
 
 "C" 
 
 Comparative Statement of Assets and Liabilities 
 as at January ist, 1907, December 31st, 1907, 
 and December 31st, 1908. 
 
 Summary of Receipts and Expenditures of the 
 City, grouped according to functions and classi- 
 fied as "ordinary" and "extraordinary" for the 
 fiscal years, 1907, 1908 and the six months 
 ended June 30th, 1909. 
 
 Statement of Receipts by Departments, grouped 
 according to functions, for the fiscal year 1907. 
 
 "C-i" Statement of Receipts by Departments, grouped 
 according to functions, for the fiscal year 1908. 
 
 **C-2" Statement of Receipts by Departments, grouped 
 according to functions, for the six months 
 ended June 30th, 1909. 
 
 "D" Statement of Expenditures by Departments, 
 grouped according to functions, for the fiscal 
 year 1907. 
 
 44 
 
 ^ 
 
 
 Exhibits: 
 
 "D-i" Statement of Expenditures by Departments, 
 grouped according to functions, for the fiscal 
 year 1908. 
 
 "D-2" Statement of Expenditures by Departments, 
 grouped according to functions, for the six 
 months ended June 30th, 1909. 
 
 Trial Balance of the Comptroller's Ledger as at 
 January ist, 1907. 
 
 Trial Balance of the Comptroller's Ledger as at 
 June 30th, 1909. 
 
 City Collector: Summary of Taxes in Arrears 
 as at June 30th, 1909. 
 
 "E" 
 "G" 
 
 Schedules. 
 I 
 
 5 
 6 
 
 8 
 
 10 
 
 II 
 
 Water Department : Cost of Real Estate and 
 Construction as at December 31st, 1908. 
 
 Wharf Property owned by the City as at Decem- 
 ber 31st, 1908. 
 
 Cost of Sundry City Properties, including City 
 Hall, Court House, Jail, Bay View Asylum, 
 etc., as at December 31st, 1908. 
 
 School Real Property and Buildings owned by 
 the City as at December 31st, 1908. 
 
 Fire Department Real Property and Buildings 
 owned by the City as at December 31st, 1908. 
 
 Parks and Squares owned by the City as at 
 December 31st, 1908. 
 
 Police Station Houses: Real Property and 
 Buildings owned by the City as at December 
 31st, 1908. 
 
 Markets : Real Property and Structures owned 
 by the City as at December 31st, 1908. 
 
 City Property under control of the Commis- 
 sioners of Finance as at December 31st, 1908. 
 
 Free Public Baths : Real Estate and Buildings 
 owned by the City as at December 31st, 1908. 
 
 Enoch Pratt Free Libraries : Real Property and 
 Buildings owned by the City as at December 
 31st, 1908. 
 
 45 
 
It will be noted that we have not set up a statement of Assets 
 and Liabilities as of June 30th, 1909, the end of the period of 
 our examination, because that is not the end of the fiscal year 
 of the City ; but we have prepared and submit a Trial Balance 
 of the Comptroller's Ledger, which shows the various appro- 
 priations, together with the amount of Recepits and Expendi- 
 tures of cash and the balance, debit or credit, at June 30th, 
 1909, the expenditures being based chiefly upon cash transac- 
 tions. 
 
 In the course of our investigation, we examined thoroughly 
 the Receiving Warrants issued by the City Comptroller cover- 
 ing Departmental receipts, as also the Disbursing Warrants 
 issued by him and paid by the Register during the period under 
 review, and found complete harmony between the books and 
 records of the office of the Comptroller and those of the Regis- 
 ter, as well as with the returns made by the Departments. The 
 work of this Department is very voluminous, and has been 
 performed with commendable care and accuracy. 
 
 The Exhibits and Schedule herein set forth are self-explana- 
 tory; but we desire to call your attention to the fact that the 
 statements of Assets and Liabilities are based partly upon 
 information taken from books of account and partly upon 
 information gathered from reports and data not incorporated 
 in books of account. 
 
 As will be noticed, we have augmented the statements here- 
 tofore rendered by the officials of the City to some extent, yet 
 those presented here are incomplete owing to the absence of 
 reliable information concerning other known assets belonging 
 to the City. 
 
 In conclusion, we desire to say that we have now completed 
 
 our audit, having examined and reported on the following 
 
 departments : 
 
 Commissioners of Finance 
 City Register's Office 
 Topographical Survey- 
 City Librarian 
 
 Superintendent of Lamps and Lighting 
 Superintendent of Public Buildings 
 Board of Fire Commissioners 
 
 46 
 
 1^ 
 
 >■♦- 
 
 'r 
 
 Collector of Water Rents and Licenses 
 
 Inspector of Buildings 
 
 Harbor Board 
 
 Commissioner of Street Cleaning 
 
 Department of Legislative Reference 
 
 Mayoralty 
 
 Commissioners for Opening Streets 
 
 Free Public Bath Commission 
 
 Electrical Commission 
 
 Board of Park Commissioners 
 
 Law Department 
 
 Board of School Commissioners 
 
 Water Engineer 
 
 Supervisors of City Charities 
 
 Market Master 
 
 City Collector — Appeal Tax Court 
 
 Jail Board 
 
 City Engineer 
 
 Bay View Asylum 
 
 Comptroller's Office 
 
 The books of the Health Department and Sewerage Com- 
 mission were examined by other accountants, under proper 
 authority, and our instructions were not to go into the details 
 of them. As to those Departments coming under control of 
 the State, namely, 
 
 Courts 
 
 Liquor License Commission 
 
 Supervisors of Elections 
 
 House of Correction 
 
 Board of Police Examiners 
 
 Board of Police Commissioners 
 
 Coroners 
 
 we were instructed not to investigate them, as it was consid- 
 ered that the City had no authority to order such examina- 
 tion ; but we verified and carefully scrutinized the expenditures 
 by the City on their account. 
 
 We did not verify the amounts appearing upon the books of 
 the several Departments as due the City, beyond checking out 
 the items constituting such amounts, as, in our judgment, 
 further verification would be unwarranted because of the 
 great expense entailed. 
 
 47 
 
As already stated in our specific report on the Park Depart- 
 ment, we have not verified the gross earnings of the Street 
 Railways, upon which are based the "Street Railway Park 
 Taxes," no authority having been given us to do so. 
 Corrections have been made of all errors found. 
 Barring the specific instances of wrongdoing resulting in 
 the shortages reported by us, all funds received for corpomte 
 purposes have been satisfactorily accounted for. As to the 
 accounting system, it will be seen from our report covering 
 suggestions in relation thereto that improvements should be 
 made therein. It is evident that there has been a general effort 
 to better the methods of accounting in the various Departments 
 by those connected therewith, so as to give a faithful exhibit of 
 transactions. Proper vouchers were obtained for all pavments. 
 Our efforts to get at the truth of the situation have been 
 facilitated by all those with whom we have come in contact, 
 and it has made our u ork easier and less expensive to the City 
 than it otherwise would have been. We have no doubt that 
 the suggestions we are making for what we deem to be a better 
 system of recording the transactions of the City will be wel- 
 comed by all those who by reason of their emplovment are 
 charged with carrying out the orders of the properlv consti- 
 tuted authorities, and that every effort will be made by them 
 to adopt such suggestions as may be found to be serviceable 
 by those to whom this report runs and who are, in the last 
 analysis, responsible for the proper conduct of the business of 
 this great city. 
 
 All of which is respectfully submitted. 
 
 « 
 
 liil AMERICAN AUDIT COMPANY, 
 
 By R. M. CouLBOURN, 
 
 Approved : 
 
 F. W. Lafrkntz, President. 
 Attest : 
 
 Theo. Cocheu, Jr., Secretary, 
 
 48 
 
 Resident Manacrer. 
 
 ?>> 
 
 « 
 
American audit company, 
 
 • •• Reoornncndations relative to a 
 general system of accounting for 
 the city of Baltimoro 
 
 ■^ 
 
 
 
 V\ YTf r5 
 
 fY^SM t 
 
 M ft 
 
 T"l I 
 
 i 
 
 tM/? Qljgoi 
 
 / 
 
 COLUMBIA UNIVERSITY 
 
 1! I Mil I! 
 
 UU32054335 
 
 AUG -3 192