USA > Massachusetts > Middlesex County > Wayland > Official reports of the town of Wayland 1925-1926 > Part 13
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Appended to this report are tables showing a recon- ciliation of the treasurer's cash and the condition and transactions of the several trust funds.
The re-commitments of taxes of the levies of 1923 and 1924 were examined and checked in detail. The re- corded payments to the treasurer were verified by a comparison with the treasurer's books, the abatements were checked with the assessors' records of abatements granted, the outstanding accounts were listed and rec- onciled, and the cash on hand was verified.
In the process of collecting the re-committed ac- counts, evidence has been submitted to the collector of the payment to the former collector of twenty-two ac- counts of 1923 aggregating $1,033.40 and of seventy- two accounts of 1924 aggregating $4,582.15. These amounts, therefore, have been added to the discrepan- cies of the former collector.
The commitment of taxes for the levy of 1925 was examined and checked. The commitment was proved and reconciled with the warrant, the recorded payments to the treasurer were verified by a comparison with the treasurer's books, the abatements were checked with the assessors' records of abatements granted, the out- standing accounts were listed, and the cash on hand was verified.
Appended to this report are tables showing recon- ciliations of the collector's cash and summaries of the tax and assessment accounts.
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The town clerk's receipts for licenses issued for the town, the State and the county were checked, and the recorded payments to the town, State and county treas- urers were verified.
The accounts of the water department were exam- ined and checked. The records of collections were checked with the water register for the years 1923 to April 3, 1926, it being found that the recorded collections to March 1, 1925, exceeded the payments to the treasu- rer by $631.75. This discrepancy was called to the atten- tion of the former water collector, and the amount is to be paid into the town treasury. The accounts of the present collector were checked and reconciled with the outstanding accounts as shown by the water register.
Appended to this report are tables showing a re- conciliation of the collector's cash and a summary of the accounts receivable.
The town clerk's records of appropriations voted by the town were examined, and it was noted that under Article 33 of the warrant for the annual town meeting of March 3, 1926, the town voted "that the town, under the provisions of Chapter 480, Acts of 1924, instruct the town treasurer to pay the sum of $1,197.04 to the Charles H. Alward Post No. 133 of the American Legion of Wayland, for the establishment of a Memorial Lobby in the proposed Memorial Building to be erected by said Post." This vote does not, in my opinion, comply with the provisions of Chapter 480, Acts of 1924, as the town cannot legally borrow money for the construction of buildings to be owned and controlled by a private soci- ety or association.
In addition to the departments and accounts men- tioned, the accounts of all other departments receiving money for the town were examined and verified.
The books and accounts under the new system were opened as of January 1, 1926, and the financial transactions to April 3, 1926, were entered therein.
The system as installed provides automatic checks which will furnish the administrative officers with infor- mation which should prove helpful in carrying on the work of the respective departments. Citizens may also be furnished with facts relative to the cost of the sev- eral functions and activities of the town government.
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The several books and forms provided contemplate the systematic classification of accounts by means of grouping all items of receipts and all items of expendi- ture of a similar nature under what is termed a func- tional classification; that is, grouping those items that are related, thus allowing the public to see at a glance what each particular service is costing.
The treasury warrant (upon which all payments are made) will be prepared by the town accountant. By the use of the warrant, he can see whether there is a sufficient sum to the credit of the department on account of which the same is drawn before the warrant is ap- proved by the selectmen, thereby preventing expendi- tures in excess of the sums appropriated.
Ample provision has been made for handling the accounts in a businesslike manner, and with the ac- counts kept up to date, as I believe they will be, the several town officials will have available at all times in- formation which will aid them in planning their work and which will also insure a complete statement of the financial condition of the town from time to time.
A list of the books and forms provided for the town, together with a brief description of their use and certain general instructions relative to the keeping of the ac- counts, follows :
Journal for accounting officer
Cash book for accounting officer
Ledger for accounting officer
Classification book for accounting officer
Cash book for treasurer
Schedule of department bills payable
Treasury warrants
Schedule of collector's payments to treasurer
Schedule of departmental payments to treasurer
Schedule of treasurer's recepits
Schedule of tax abatements allowed
Voucher folder
General department payrolls
School department payrolls
Monthly statements.
All of these books and forms are arranged so as to simplify the reporting and make possible a proper check on the accounting of public moneys; also to insure a
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classification of both receipts and payments. All mon- eys received from every source and paid to the treasurer are also reported to the accounting officer, in whose book will be recorded all cash transactions in detail, which will furnish an absolute check on the total.
Journal .- This is a bound book of the ordinary two- column stock type. It forms, together with the cash book, the medium from which all entries in the general ledger are posted, as it is of vital importance that no entry shall be originated in the general ledger.
The journal is used for keeping a record of the deb- iting and crediting of items in the ledger, such as open- ing entries, budget appropriation entries, the entering of tax commitments, the abatements of taxes, accounts re- ceivable, and all entries which are not strictly cash book transactions.
It is important that all journal entries state clearly the ledger accounts which are to be debited and cred- ited; also that full explanation of the entry be made, in order that the transactions may be fully understood by anyone examining the accounts.
Cash Book (for Accounting Officer) .- This is a bound book similar to those used in ordinary commer- cial accounting; in this book should be entered all tran- sactions involving the receipt or the disbursement of cash, in order that the total transactions for a given period may be shown at a glance.
All moneys received from every source will be re- ported to the accounting officer; therefore, in the latter's cash book will be recorded cash transactions which are similar to those of the treasurer, except in detail, and which will furnish an absolute check on the total.
Ledger .- This is of the loose-leaf type; when the several sheets are properly arranged and placed in the binder provided for the purpose, they form the general ledger, in which are recorded, in controlling accounts, all of the financial transactions of the town.
The accounts in the general ledger are separated and grouped in sections, as follows:
First, Assets and liabilities
Second, Revenue accounts.
Third, Appropriation accounts
Fourth, Funded or Fixed debt
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Fifth, Trust funds.
From the ledger, information relative to the con- dition of the several appropriations may be obtained readily and the administrative officers may keep con- stantly informed of the amounts expended; also of the amounts available for the balance of the year. This in- formation is very necessary in view of the statute which expressly forbids the incurring of liabilities in excess of the appropriations made for the use of the several departments ;; unless the work is well planned, it will be found that the appropriations will be exhaust- ed before the end of the year, with much needed work still to be done.
Classification Book .- This book consists of loose- leaf forms with printed headings covering the chief sources from which revenue is received and objects for which money is expended, with blank spaces which allow for additional headings to cover important items that may seem desirable. These sheets are arranged in functional order and placed in a binder provided for the purpose, thus forming the principal source of detailed information regarding the receipts and disbursements of the town. They are arranged in a classified form that is generally accepted and adopted by accountants and stu- dents of municipal affairs. Provision is made for the recording of the date of the receipt, from whom received, and the source.
On the payment side will be shown the date of the bill, to whom paid, and the purpose or object of pay- ment.
From this book definite information can readily be obtained of every cash transaction of the town; but its chief object is to furnish classification in a scientific manner, regardless of the method of making appropri- ations.
This book is also designed to bring the costs of each particular function or service together, so that by know- ing the costs and intelligently comparing them with the service given, the taxpayer may judge of the efficiency or inefficiency of the administrative officers.
Cash Book (for Treasurer) .- This is a bound book especially designed for the recording of all of the cash receipts and disbursements of the treasury department
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in one book.
Schedule of Bills Payable .- On these sheets each department should list all bills approved for payment, and should forward them, accompanied by the original bills, to the accounting officer. From these the treasury warrants are prepared.
Treasury Warrants .- These are for listing the bills of the several departments. Warrants are submitted to the selectmen, together with the bills, for their appro- val, the bills first having been checked by the account- ing officer and compared with the several appropriation accounts to which they are chargeable. The selectmen having signed the warrant, it is passed to the treasurer as his authority for payment.
Under the statute, the selectmen are required to ap- prove all bills before they are paid by the treasurer; by using the treasury warrant, they can give greater atten- tion to the bills and appropriation accounts without con- suming additional time.
Schedule of Collector's Payments to Treasurer .- These are especially designed forms for the reporting to the accounting officer of payments made to the treasu- rer by the collector. From these reports the accounting officer is enabled to classify properly the collector's re- ceipts and verify the receipts reported by the treasu- rer.
Schedule of Pepartmental Payments to Treasurer .- This form is for the use of departments, except those for which special forms are prepared, for reporting pay- ments to the treasurer.
Schedule of Treasurer's Receipts .- The treasurer will use these forms in reporting the cash receipts to the accounting officer. They form the basis of the debit en- tries in the accounting officer's cash book, and together with the schedules of payments to the treasurer, serve as an automatic check on the cash account. furnishing the accounting officer with the necessary information for keeping his accounts up to date at all times and also en- abling statements to be drawn off showing actual cash transactions. By the use of printed forms for the re- porting of all items involving cash, but little time is required for reporting the same.
Schedule of Tax Abatements Allowed .- This form
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is for the use of the assessors in reporting abatements to the accounting officer so that he may credit the col- lector with these items in addition to his cash payments to the treasurer. On the accounting officer's book, the collector is charged with the commitment and credited with collections paid the treasurer; if to the collections are added abatements allowed, the accounting officer's ledger will show, in his collector's account, the exact amount of outstanding taxes.
Voucher Folder .- This form is for the use of the town accounting officer and is designed for the purpose of securing uniformity in the filing of bills.
General Department Payrolls .- These are to be used by all departments, except the school department, in making up their weekly or monthly payrolls, and are designed for the purpose of securing unformity in the payrolls of all departments.
School Department Payrolls .- These are especially designed for the use of the school department, provision being made for showing the gross amount of salary due each teacher or employee, the amount of deduction on account of the retirement fund, the net amount received by each person and the total amount to be sent to the treasurer of the retirement fund.
Monthly Statements .- These forms are used by the town accounting officer in notifying each department of the warrants drawn against its appropriation and the balance subject to draft.
Revenue .- Upon receipt of notice from the town clerk of appropriations voted by the town to be raised by taxation, a journal entry should be made debiting revenue and crediting the proper appropriation accounts. When the tax warrant is delivered to the collector, this account should be credited and taxes debited.
At the close of the year, a journal entry should be made debiting all unexpended appropriation accounts (the object for which the appropriation was made hav- ing been completed) and crediting revenue. The esti- mated receipts account should also be closed out into the revenue account at the close of the year, and the revenue account closed into the excess and deficiency account.
Estimated Receipts .- The amount of estimated re- ceipts deducted by the assessors in determining the
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amount to be raised by taxation should be debited to the estimated receipts account and the revenue account cred- ited; as cash is received, estimated receipts should be credited and cash debited.
Taxes .- Upon the delivery of the assessors' war- rant for the collection of taxes, a journal entry should be made debiting taxes with the total amount of the commitment and crediting revenue, state tax, county tax, state highway tax and overlay with the several amounts appearing in the. warrant.
As money is paid into the town treasury, cash should be debited and the tax account credited. When abate- ments are granted by the assessors, a journal entry should be made crediting taxes and debiting overlay.
Commonwealth of Massachusetts-State Aid .- This account represents the amount due from the Common- wealth for State Aid disbursed during the previous year. Upon receipt of money from the State, cash should be debited and State Aid credited. At the close of the year, a journal entry should be made debiting State Aid due from the Commonwealth and crediting the Departmen- tal Revenue with the amount of State Aid disbursed during the year.
Poor Department Accounts Receivable .- When bills are sent to the State, cities and towns, or individuals, for aid rendered paupers not having a settlement in the town, a journal entry should be made debiting the poor department accounts receivable and crediting depart- mental revenue with the amount of the charge; as cash is received, the accounts receivable account should be credited and cash debited.
The same procedure should be followed in the case of accounts receivable of all departments rendering bills for amounts due the town.
Overlay .- Whenever abatements are granted by the assessors, a journal entry should be made debiting over- lay and crediting taxes for the amount of the abate- ments. Any balance in the overlay account in excess of the amount of the warrant remaining to be collected or abated should, by journal entry, be transferred to the overlay reserve fund.
Overlay Reserve Fund (Overlay Surplus) .- This ac- count represents the surplus or difference between the
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overlay and the abatements granted by the assessors, and should be reserved for extraordinary or unforeseen expenses, as required by Section 25, Chapter 59 of the General Laws.
Revenue Loans .- Whenever loans are issued in an- ticipation of revenue, the cash account should be debited and the revenue loan account credited; when the loan is paid, a warrant should be drawn, revenue loan account debited and cash credited.
Departmental Revenue (Not Available Until Col- lected .- This account represents revenue of the several departments on account of charges for services rendered or materials furnished. At the end of each month the amount of cash received on account of departmental charges should be credited by journal entry to the esti- mated receipts account and departmental revenue should be debited.
Net Bonded Debt .- When debt is incurred by the issue of bonds or notes (for other than temporary reve- nue loans), a journal entry should be made debiting net bonded debt and crediting the specific loan account. When the bonds are paid, the specific loan account should be debited and net bonded debt credited.
Trust Funds .- When money is received the income of which is to be used for some specific purpose, cash should be debited and the special fund account credited. A warrant should be drawn authorizing the treasurer to deposit the amount in the savings bank, cash should be credited, and trust funds (cash or securities) debited.
As income as withdrawn from the bank, cash should be debited and the specific purpose for which the fund was created (such as library, cemetery, etc.), credited. At the end of the year, the income in excess of the with- drawals should be entered on the books by debiting trust funds (cash and securities) and crediting the specific fund account.
For the courtesies extended and the assistance ren- dered during the process of the audit and the installation of the system, I wish, on behalf of my assistants and for myself, to express appreciation.
Respectfully submitted, EDW. H. FENTON, Chief Examiner.
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RECONCILIATION OF TREASURER'S CASH
Balance July 31, 1925, per previous
audit
$19,026.24 181,981.20
Receipts
$201,007.44
Payments
Balance December 1, 1925
$181,678.19 19,329.25
$201,007.44
Balance January 1, 1926 $19,329.25
Receipts January 1 to April 3, 1926 65,174.77
$84,504.02
Payments Jan. 1 to April 3, 1926 $74,348.97 Balance Apr. 3, 1926, per cash book 10,155.05
$84,504.02
Balance April 3, 1926, per cash
book
$10,155.05
Outstanding checks per list 1,325.67
$11,480.72
Payments April 2, 1926, in advance of warrants: checks No. 19493- No. 19511 $479.86
In Natick Trust Co. April 3, 1926,
per bank statements:
General accounts $4,960.99
1923 accounts 1,064.25
1924 accounts 1,771.07
1925 accounts 3,063.00
10,859.31
Cash on hand April 3, 1926
(deposited April 6, 1926 141.55
$11,480.72
RECONCILIATION OF TAX COLLECTOR'S CASH
T. H. Harrington, Collector
Balance per cash book April 3, 1926: Taxes 1924 $165.90
Moth Assesments 1924 1.50
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Interest-Taxes 1923
3.25
Interest-Taxes 1924
14.63
Costs 1.00
$186.28
In Natick Trust Co. April 3, 1926, per bank statement $121.42
Cash on hand April 3, 1926 (deposited April 5, 1926)
64.86
$186.28
RECONCILIATION OF TAX COLLECTOR'S CASH
Wilbur C. Gorman, Collector
Balance per cash book April 3, 1926:
Taxes 1925
$2,556.99
Moth Assessments 1925
8.00
Interest-Taxes 1925
62.73
Costs
13.07
Overpayments (to be refunded)
4.51
Interest-Bank Account
15.01
Cash Over 1.11
$2,661.42
In Natick Trust Co. April 3, 1926, per bank statement $2,586.72
Cash on hand April 3, 1926 (Deposited $54.70, April 5)
74.50
$2,661.42
RECONCILIATION OF WATER COLLECTOR'S CASH
Maynard R. Porter
Cash on hand January 1, 1925 $100.75
Collected January 1 to March 1, 1925 774.00
Receipts per water register not en- tered in cash book:
1924 $700.00
1925 84.00
784.00
$1,658.75
Payments to Treasurer 1925
$889.75
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Receipts 1924 per cash book not identified with register 137.25 Balance due Town April 3, 1926 631.75
$1,658.75
RECONCILIATION OF WATER COLLECTOR'S CASH
Alfred C. Damon
Collections 1925
$5,760.40
Collections 1926 to April 3
1,108.00
$6,868.40
Payments to Treasurer:
1925
$5,607.50
1926 to April 3
1,056.40
Balance April 3, 1926
204.50
$6,868.40
Balance April 3, 1926 Cash Over
$204.50
15.31
$219.81
In Natick Trust Co. April 3, 1926, per bank statement $208.01
Cash on hand April 3, 1926
11.80
$219.81
RE-COMMITTED TAXES-1923
T. H. Harrington, Collector
Re-commitment August 25, 1925,
per previous audit $3,348.97
Moth Assessment 1923 credited as taxes 1923 13.25
$3,362.22
Payments to Treasurer August 25 to December 331, 1925 $1,415.02
Amounts claimed paid previous collector 755.77
Abatements Aug. 25 to Dec. 31, 1925
53.36
Moth Assessments 1923 included in re-commitment of taxes 1923 21.50
Taxes 1923 credited as taxes 1924 .56
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Outstanding December 31, 1925 1,116.01
$3,362.22
Outstanding January 1, 1926
$1,116.01
Payments to Treasurer January 1 to April 3, 1926 $5.00
Amounts claimed previous collec-
tor 273.88
Abatements Jan. 1 to Aprril 3, 1926 21.95
Tax titles taken by Town 42.97
Outstanding April 3, 1926, per list 772.21
$1,116.01
RE-COMMITTED TAXES-1924
T. H. Harrington, Collector
Re-commitment August 25, 1925,
per previous audit $18,488.11
Moth Assessments 1924 credited as taxes 1924 48.30
Taxes 1923 credited as taxes 1924
.56
Interest credited as taxes 1924 17.77
$18,554.74
Payments to Treasurer August 25 to December 31, 1925 $6,817.49
Amounts claimed paid, previous collector $3,908.29
Moth Assessment 1924 included in re-commitment of taxes 1924 141.45
Taxes 1924 credited as unassessed taxes 2.12
Abatements Aug. 25 to Dec. 31, 1925 78.02
Outstanding December 31, 1925 7,607.37
$18,554.74
Outstanding January 1, 1926 $7,607.37
Interest credited as taxes 1924 .72
$7.608.09
Payments to Treasurer January 1 to April 3, 1926 $712.60
Amounts claimed paid previous col- lector 639.51
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Error in Abatements .02
Taxes 1924 credited as interest .29
Outstanding April 3, 1926, per list 6,089.77 165.90
Cash on hand April 3, 1926
$7,608.09
TAXES-1925
W. C. Gorman, Collector
Commitment per warrant $104,204.93
December Assessment 119.87
$104,324.80
Detailed list in excess of warrant
24.65
Re-assessments, 1925
559.98
Moth Assessments 1925 credited as taxes 1925 2.25
Interest credit as taxes
.01
Paid and abated, not refunded
4.42
$104,916.11
Payments to Treasurer to December 31, 1925 66,136.70
Abatements to Dec. 31, 1925
644.42
Taxes 1925 credited as interest
.13
Outstanding December 31, 1925
38,134.86
$104,916.11
Outstanding January 1, 1926 Payments to Treasurer January 1
$38,134.86
to April 3, 1926 $10,954.46
Abatements Jan. 1 to April 3, 1926 66.30
Outstanding April 3, 1926, per list 24,557.11
Cash on hand April 3, 1926 2,556.99
Outstanding January 1, 1926
$38,134.86
RE-COMMITTED MOTH ASSESSMENTS-1923
T. H. Harrington, Collector Re-commitment August 25, 1925, per previous audit, included in re-commitment of taxes 1923 Moth Assessments 1923 credited as
$21.50
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taxes 1923
Outstanding December 31, 1925
$13.25 8.25
$21.50
Outstanding January 1, 1926
$8.25
Amounts claimed paid previous col- lector $3.75
1
Outstanding April 3, 1926, per list
4.50
$8.25
RE-COMMITTED MOTH ASSESSMENTS-1924
T. H. Harrington, Collector
Re-commitment August 25, 1925,
per previous audit, included in re-commitment of taxes 1924 $141.45
Moth Assessments 1924 credited as taxes 1924 $48.30
Outstanding December 31, 1925 93.15
$141.45
Outstanding January 1, 1926 $93.15
Payments to Treasurer January 1 to April 3, 1926 $7.50
Amounts claimed paid previous col- lector 34.35
Outstanding April 3, 1926, per list 49.80
Cash on hand April 3, 1926 1.50
$93.15
MOTH ASSESSMENTS-1925
W. C. Gorman, Collector
Commitment per warrant $419.00
Payments to Treasurer to Decem-
ber 31, 1925 $272.25
Moth Assessments
1925
credited
as taxes 1925 2.25
Outstanding December 31, 1925 2.25
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Outstanding December 31, 1925 144.50
$419.00
Outstanding January 1, 1926
$144.50
Payments to Treasurer Jan. 1 to April 3, 1926
$25.50
Outstanding April 3, 1926, per list 111.00
Cash on hand April 3, 1926
8.00
$144.50
INTEREST ON RE-COMMITTED TAXES-1923
T. H. Harrington, Collector
Interest collected August 25 to De- cember 31, 1925
$149.70
Payments to Treasurer $149.70
Interest collected Jan. 1 to April 3, 1926 $3.92
Payments to Treasurer January 1
to April 3, 1926 $.67
Cash on hand April 3, 1926 3.25
$3.92
INTEREST ON RE-COMMITTED TAXES-1924
T. H. Harrington, Collector
Interest collected August 25 to De-
cember 31, 1925
$394.99
Payments to Treasurer August 25 to December 31, 1925 $377.22
Interest credited as taxes 1924 17.77
$394.99
Interest collected Jan. 1 to April 3, 1926 $69.84
Taxes 1924 credited as interest .29
$70.13
Payments to Treasurer January 1 to April 3, 1926 $54.78
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