USA > Massachusetts > Essex County > Saugus > Town annual report of Saugus 1937 > Part 18
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By interest paid Treasurer
9.96
$ 1,245.96
Uncollected December 31, 1937 .
$
106.00
Dr.
To 1937 poll tax commitment of April 14, 1937, and December 20, 1937 $ 9,284.00 $ 9,284.00
Cr.
By payments to Treasurer
$
7,890.00
By abatements
256.00
$ 8,146.00
Uncollected December 31, 1937 . $ 1,138.00
Motor Vehicle Excise Taxes
Dr.
To balance of Motor Vehicle Ex- cise Tax committed April 11, 1932 $ 2.00 .48
To interest collected
$ 2.48
Cr.
By payments to Treasurer $ 2.00
By interest paid Treasurer
.48
$ 2.48
Dr.
To balance of M. V. Excise Tax
committed October 20, 1932 .. $ 4.46
To interest collected
.84
$ 5.30
-
-
314
TOWN DOCUMENTS
[Dec. 31
Cr.
By payments to Treasurer $ 4.46
By interest paid Treasurer
.84
$ 5.30
Dr.
To balance of M. V. Excise Tax
committed March 27, 1933 $ 11.15
To interest collected 1.85
$ 12.99
Cr.
By payments to Treasurer $ 11.15
By interest paid Treasurer 1.84 -
$ 12.99
Dr.
To balance of M. V. Excise Tax
commitment of April 18, 1933 . $ 5.72
To interest collected 1.02
$
6.74
Cr.
By payments to Treasurer $ 5.72
By interest paid Treasurer
1.02
$ 6.74
Dr.
To balance of M. V. Excise Tax
commitment of July 15, 1933 .. $ 268.22 $ 268.22
Cr.
By abatements $ 263.59 $
263.59
Uncollected December 31, 1937 . $ 4.63
1937]
TAX COLLECTOR'S REPORT
315
Dr.
To balance of M. V. Excise Tax
commitment of January 5, 1934 $ 4.00
To interest collected 1.52
$ 5.52
Cr
By payments to Treasurer $ 4.00
By interest paid Treasurer 1.52
$ 5.52
Dr.
To balance of M. V. Excise Tax
commitment of March 1, 1934 .. $ 43.59
To interest collected .36
$ 43.95
Cr.
By abatements $ 41.02
By payments. to Treasurer
2.57
By interest paid Treasurer
.36
$ 43.95
Dr.
To balance of 1934 M. V. Excise
Tax commitment of March 22, 1934 $ 79.75
To interest collected
1.71
$ 81.46
Cr.
By payments to Treasurer $ 9.32
By interest paid Treasurer 1.71
70.43
By abatements $ 81.46
316
TOWN DOCUMENTS
[Dec. 31
Dr.
To balance of M. V. Excise Tax
commitment of May 25, 1934 .. $ 12.00
To interest collected 1.70
$ 13.70
Cr.
By payments to Treasurer $ 6.00
By interest paid Treasurer 1.70
By abatements
6.00
$ 13.70
Dr.
To balance of 1934 M. V. Excise
Tax commitment of July 5, 1934 $ 22.97
To interest collected .32
$ 23.29
Cr.
By payments to Treasurer $ 4.00
By interest paid Treasurer
.32
By abatements 18.97 $ 23.29
Dr.
To balance of M. V. Excise Tax
committed September 5, 1934 . . $ 30.08
To interest collected 2.10
$ 32.18
Cr.
By payments to Treasurer $ 13.94
By abatements
10.84
By interest paid Treasurer
2.10
$ 26.88
Uncollected December 31, 1937 . . $ 5.30
1937]
TAX COLLECTOR'S REPORT
317
Dr.
To balance of M. V. Excise Tax
commitment of November 5, 1934 $ 49.27
To interest collected
4.48
$ 53.75
Cr.
By payments to Treasurer $ 22.29
By interest paid Treasurer
4.48
By abatements
24.98
$ 51.75
Uncollected December 31, 1937 . . $ 2.00
Dr.
To 1934 M. V. Excise Tax com-
mitment of January 10, 1935. . $ 66.87
To interest collected
1.04
$ 67.91
Cr
By payments to Treasurer $ 4.00
By interest paid Treasurer
1.04
By abatements
56.87
$ 61.91
Uncollected December 31, 1937 . . $ 6.00
Dr.
To 1934 M. V. Excise Tax com-
mitment of January 18, 1935 . . $
10.00 $
10.00
Cr
-
-
By abatements $ 10.00 $ 10.00
1
318
TOWN DOCUMENTS
[Dec. 31
Dr.
To balance of M. V. Excise Tax
commitment of April 20, 1935. . $ 285.50
To interest collected 3.55
$ 289.05
Cr.
By payments to Treasurer $ 19.76
By abatements
253.50
By interest paid Treasurer
3.55
$ 276.81
Uncollected December 31, 1937 . . $ 12.24
Dr.
To balance of 1935 M. V. Excise
Tax commitment of June 5, 1935 $
57.99 $ 57.99
Cr.
By abatements $ 57.99 $
57.99
Dr.
To balance of 1935 M. V. Excise
Tax commitment of July 6, 1935 $ 35.59
To interest collected 3.15
-
$ 38.74
Cr.
By abatements $ 16.58
By interest paid Treasurer
3.15
Commitment to Town Counsel
4.00
By payments to Treasurer
11.01
$
34.74
Uncollected December 31, 1937 .
$ 4.00
Dr.
To balance of M. V. Excise Tax commitment of August 3, 1935 $ 9.89 $ 9.89
1937]
TAX COLLECTOR'S REPORT
319
Cr.
By abatements $ 2.00 $
2.00
Uncollected December 31, 1937 . . $ 7.89
Dr.
To balance of M. V. Excise Tax commitment of August 20, 1935 $ 184.50
To interest collected 3.69
$ 188.19
Cr.
By payments to Treasurer
$ 30.18
By abatements
146.38
By interest paid Treasurer
3.69
$ 180.25
Uncollected December 31, 1937 . . $ 7.94
Dr.
To balance of M. V. Excise Tax commitment of September 10, 1935
$ 101.48
To interest collected
1.89
$ 102.37
Cr.
By payments to Treasurer
$ 16.95
By interest paid Treasurer
1.89
By abatements
79.53
$ 98.37
Uncollected December 31, 1937 . . $ 4.00
Dr.
To balance of M. V. Excise Tax commitment of December 18, 1935 $ 184.88
5.69
To interest collected
-
$ 190.57
320
TOWN DOCUMENTS
[Dec. 31
Cr.
By payments to Treasurer $ 43.59
By abatements 87.91
By interest paid Treasurer
5.69
By commitment to Town Counsel .
53.38
$ 190.57
Dr.
To balance of M. V. Excise Tax
commitment of April 15, 1936. . $ 784.01
To interest collected 52.57 $ 836.58
Cr.
By payments to Treasurer $ 672.53
By abatements
70.12
By interest paid Treasurer
52.57
$ 795.22
Uncollected December 31, 1937 .
$
41.36.
Dr.
To balance of M. V. Excise Tax
commitment of June 16, 1936. . $ 1,282.05
To interest collected 69.06 $ 1,351.11
Cr.
By payments to Treasurer $ 1,041.10
By interest paid Treasurer
69.06
By abatements
203.38
-
$ 1,313.54-
Uncollected December 31, 1937 . . $ 37.57
Dr.
To balance of M. V. Excise Tax commitment of September 2, 1936 $ 679.61
To interest collected
21.59
$ 701.20;
-
-
1937]
TAX COLLECTOR'S REPORT
321
Cr.
By payments to Treasurer $ 456.16
By abatements
192.22
By interest collected
21.59
$ 669.97
Uncollected December 31, 1937
$ 31.23
Dr.
To balance of M. V. Excise Tax commitment of November 14, 1938
$ 1,451.83
To interest collected
28.27
$
1,480.10
Cr.
By payments to Treasurer $ 1,180.63
By abatements
249.85
By interest paid Treasurer
28.27
$ 1,458.75
Uncollected December 31, 1937
. .
$ 21.35
Dr.
To M. V. Excise Tax commitment
of February 5, 1937 $ 1,097.41
To interest collected
6.45 -
1,103.86 $
Cr.
By payments to Treasurer $ 978.34
By interest paid Treasurer
6.45
By abatements 69.12
$ 1,053.91
Uncollected December 31, 1937 . . $ 49.95
Dr.
To M. V. Excise Tax commitment of April 20, 1937 $ 9,710.89 14.92
To interest collected
$ 9.725.81
322
TOWN DOCUMENTS
[Dec. 31
Cr.
By payments to Treasurer $ 8,793.85 By abatements .325.53
By interest paid Treasurer
14.92
$ 9,134.30
Uncollected December 31, 1937 . . $ 591.51
Dr.
To M. V. Excise Tax commitment of July 12, 1937 $ 1,163.25
To interest collected
2.78
$
1,166.03
Cr.
By payments to Treasurer $ 1,076.01
By abatements 87.24
By interest paid Treasurer 2.78
$
1,166.03
Dr.
To M. V. Excise Tax commitment of August 20, 1937 $ 12,358.25
To interest collected
15.25
$ 12,373.50
Cr
By payments to Treasurer $ 9,531.48
By abatements
595.83
By interest paid Treasurer
15.25
Uncollected December 31, 1937
$ 10,142.56 $ 2,230.94
Dr.
To M. V. Excise Tax commitment
of October 26, 1937 $ 353.58 $ 353.58
Cr.
By payments to Treasurer $ 353.58 $ 353.58
1937]
TAX COLLECTOR'S REPORT
323:
Dr.
To M. V. Excise Tax commitment
of November 10, 1937 $ 2,596.31 .17
To interest collected
--
$
2.596.48;
Cr.
By payments to Treasurer $ 1,521.00
By abatements
59.55
By interest paid Treasurer .17
Uncollected December 31, 1937 . .
$ 1,580.72' $ 1,015.76
Dr.
To M. V. Excise Tax commitment
of December 22, 1937 $ 700.16 $
700.16;
Cr
By payments to Treasurer $ 31.26 $
31.26;
Uncollected December 31, 1937 . .
$ 668.90
REPORT OF TAX COLLECTOR'S FEES
January 1, 1937, to December 31, 1937.
To the Citizens of the Town of Saugus:
I hereby submit my report of Tax Collector's Fees for the year 1937.
51 Tax Certificates at $1.00
$51.00
90 Water Lien Releases at $1.00 90.00
Paid to Town Treasurer $141.00
VIOLA G. WILSON,
Collector of Taxes.
..
324
TOWN DOCUMENTS
[Dec. 31
Report of the Contributory Retirement Board
December 31, 1937
Honorable Board of Selectman, Town Hall, Saugus, Mass.
Gentlemen:
The Retirement Board herewith submits its first annual report for the year ending December 31, 1937
On July 1, 1937, the Contributory Retirement Pension Act for cities and towns of the Commonwealth became effec- tive and all regular employees of the town were given the opportunity to become members of the system. Practically all eligible employees accepted and are now regular contri- buting members. All regular employees who were 70 years of age or over on the first day of July 1937, applied for the statutory extension of two years employment and were granted same by unanimous vote of this Board in accordance with the statute.
A great amount of statistical data regarding the em- ployment history of every employee was required by the State Division of Insurance in order that actuarial figures might be compiled for the establishment of proper prior serv- ice credits of employees. This data together with the setting up of the accounting system and the operation of same was of necessity taken care of by the Town Accountant's office and has substantially increased the detail work of this office.
The members of the system are classified as Group 1 and Group 2. Members of Group 2 include policemen and fire- men only and members of Group 1 include employees of all other departments. During 1937 there were no Group 2 members but in 1938 and the future years all persons appoint- ed as regular policemen and firemen will automatically be- come members as under the statute this becomes a condition
325
1937] RETIREMENT BOARD'S REPORT
of employment. This also applies to any regular employee in other departments employed on and after July 1, 1937.
The following is a schedule of Group 1 members :
Total contributing members in 1937 .. 68 Terminated Service 1
Retired 1
Deceased 1
3
Total contributing members December 31, 1937 . . 65
Total non-contributing members in 1937
8
(Over 70 years of age) Retired (Voluntary) 1
Retired (Compulsory) 3
-
4
Total non-contributing members December 31, 1937
4
Total members December 31, 1937 69
The following is a statement of condition :
Total contributions by members (July 1st to December 31st) $2,310.08
Total pensions paid retired members $636.90
Total refunds paid to members
who terminated service 19.01
Total disbursements-Trust Funds $655.91 Balance on hand in Annuity Savings and Annuity Reserve Funds as of December 31, 1937 $1,654.17
Expense Fund-For Operation
and Administration $200.00
Books and records of Account,
printing, stationery and postage $164.38 1
326
TOWN DOCUMENTS
[Dec. 31
Balance on hand in Expense Fund as of December 31, 1937 35.62
Total Contributory Retirement Funds on hand December 31, 1937 $1,689.79
The acceptance and establishment of this system guar- antees every member who retires after faithfully serving the town over a period of years a pension and annuity commen- surate with his earnings during this period of employment and will eliminate many special acts of legislation for pen- sions which has been customary in the past. Statutory pro- vision has also been made for the refunding of accumulations to employees who terminate their service before reaching the retirement age. The fund is administered locally and can only be invested in legal investments for savings banks and must be done under the supervision and with the approval of the State Division of Banking and Insurance.
In conclusion, this Board wishes to thank Mr. Kenneth H. Damren of the Division of Accounts, Mr. Francis A. Dona- van, Jr., of the State Division of Insurance, the department heads and employees who have so splendidly cooperated with us in the successful establishment and operation of this sys- tem.
Very truly yours,
EDWARD GIBBS, JR., Chairman WILLIAM ROBINSON, Secretary RALPH QUIRK
Contributory Retirement Board
REPORT OF AN AUDIT OF
THE ACCOUNTS OF THE TOWN OF SAUGUS
For the Period from SEPTEMBER 16, 1934, TO MARCH 30, 1937
Made in Accordance with the Provisions of Chapter 44, General Laws
Inserted in Accordance with the General Laws, Chapter 44, Section 40.
January 10, 1938
328
TOWN DOCUMENTS
[Dec. 31
THE COMMONWEALTH OF MASSACHUSETTS Department of Corporations and Taxation Division of Accounts State House, Boston
Henry F. Long, Commissioner Theodore N. Waddell, Director of Accounts
January 10, 1938.
To the Board of Selectmen, Mr. William S. Rockhill, Chairman, Saugus, Massachusetts.
Gentlemen:
I submit herewith my report of an audit of the books: and accounts of the town of Saugus for the period from September 16, 1934, to March 30, 1937, made in accordance. with the provisions of Chapter 44, General Laws. This is in the form of a report made to me by Mr. Herman B. Dine, As- sistant Director of Accounts.
Very truly yours, THEODORE N. WADDELL, Director of Accounts ..
Mr. Theodore N. Waddell, Director of Accounts, Department of Corporations and Taxation,
State House, Boston.
Sir :
In accordance with your instructions, I have made an audit of the books and accounts of the town of Saugus for the period from September 16, 1934, the date of the previous,
329
STATE AUDITOR'S REPORT
1937]
examination, to March 30, 1937, and submit the following report thereon :
The financial transactions of the town, as recorded on the books of the several departments receiving or disbursing funds for the town or committing bills for collection, were examined for the period covered by the audit and compared. with the books and records in the offices of the accountant and the treasurer.
The books and accounts in the accountant's office were examined and checked in detail. The recorded receipts were compared with the treasurer's books and with the records in the several departments collecting money for the town, while the payments, as entered, were checked with the treas- urer's cash book and with the treasury warrants. The appro- priations, transfers, and loans authorized, as recorded on the ledgers, were checked with the town clerk's records of town meeting votes, with the records of transfers from the reserve fund authorized by the finance committee, and with the approvals of appropriations, loans, and transfers voted by the Emergency Finance Board.
The ledger accounts were checked and analyzed, the many necessary correcting and adjusting entries were de- termined and made, a trial balance was taken off proving the accounts to be in balance, and a balance sheet, showing the financial condition of the town as of March 30, 1937, was prepared and is appended to this report.
A careful study of the appended balance sheet shows that the financial condition of the town is not satisfactory. As of March 30, 1937, there is an actual revenue deficit of $23,060.23, as well as unprovided for accounts, overdrawn appropriations, and overlay deficits amounting to $26,538.12, which were not provided for in the 1937 tax levy.
No improvement in the financial condition of the town may be expected unless liabilities incurred are limited to the amounts appropriated by the town, and unless the provisions- of law are fully carried out in the determination of the tax levy.
330
TOWN DOCUMENTS
[Dec. 31
In order to prove the accountant's ledger, it was again necessary to check postings of receipts and payments so as to locate differences and to bring the cash transactions, as entered in the ledger, into agreement with the actual treas- ury receipts and payments. A great deal of time was spent in the detailed analysis of the general ledgers for 1934, 1935, and 1936, which indicated that the ledger work per- formed was so inaccurate throughout the years as to render the ledger valueless as a control of departmental transac- tions and as a means of readily determining the financial condition of the town at all times.
An examination of the original vouchers and pay-rolls on file was made and it was found that a number of bills did not have sufficient detail, that some vouchers and pay-rolls did not bear the required approval of the head of the depart- ment, and that some of the bills paid did not fully meet the statutory requirements. The following types of payments illustrate the latter.
Payments of town employees' salaries in advance of actual service rendered; payment of premiums for work- men's compensation insurance on certain clerical and other employees without the necessary town vote and certification required by Chapter 403, Acts of 1936; payment of out-of- state travelling expenses without a specific appropriation as required by Clause 34, Section 5, Chapter 40, General Laws; payment of regular weekly pay-rolls of the treasurer's office charged against a specific appropriation voted for the purpose of determining the validity of tax titles; and the payment of pay-rolls and expenses for the local audit of the tax collector's accounts without any provision therefor by appropriation.
The books and accounts of the town treasurer were examined and checked in detail. The recorded receipts were analyzed and compared with the records in the several departments in which money was collected for the town or in which charges originated, with the other sources from which money was paid into the town treasury, and with the accountant's books. The recorded payments were checked with the warrants authorizing the disbursement of town
331
STATE AUDITOR'S REPORT
1937]
funds, with the original vouchers and pay-rolls on file, and with the records in the accountant's office.
The treasurer's cash book footings were verified, and the cash balance on March 30, 1937, was proved by actual count of the cash in the office and by a reconciliation of the bank balances with statements furnished by the banks of deposit.
It is recommended that discounts on temporary loans and the state taxes and assessments be placed on the treasury warrants, so that the total of the treasury warrants may equal the total of the disbursements.
The recorded payments on account of maturing debt and interest were proved with the amounts falling due, being checked with the cancelled checks, securities, and coupons on file. The outstanding coupons on March 30, 1937, were listed and reconciled with the balances in the coupon account as shown by statements furnished by the banks of deposit.
Difficulty in reconciling the interest coupon accounts was encountered due to the lack of an adequate debt record. It is essential that a detailed record of the town debt and the interest due thereon be kept by the town accountant as re- quired by Section 57, Chapter 41, General Laws. Such a record, if kept up to date, will furnish detailed information on the outstanding debt and interest and the correct amounts that must be provided for annually to meet debt and interest requirements.
The payments on account of maturing principal of the Fire and Police Station Loan of 1934, on which account $5,000 has been due annually since 1935, should be provided for annually by transfer from the balance in the Federal Grant account amounting to $14,929.71, as shown on the appended balance sheet, and the annual town appropriation for maturing debt correspondingly reduced until the avail- able reserve is exhausted.
Premiums received on loans issued should be set up separately and reserved to apply to the payment of the cost of preparing and issuing the bonds on which the premium
!
332
TOWN DOCUMENTS
[Dec. 31
was received. Charges for issuing a loan in excess of the specific premium received were found to have been made against the premium account.
The securities and savings bank books representing the investments of the library and cemetery trust funds in the custody of the town treasurer were personally examined and. listed, the income being proved and the withdrawals verified ..
Income from cemetery perpetual care funds which is withdrawn to defray the cost of caring for lots under per- petual care, should not be credited to the estimated receipt. account, but should be set up in a separate account against. which the charges for care of these lots should be made .. Thus the cemetery department appropriation, to which the care of endowed lots is now charged, and the estimated re- ceipts account, should be correspondingly reduced.
The treasurer's records of tax titles held by the town were examined and checked in detail. The taxes transferred to the tax title account were compared with the tax books, the recorded redemptions on account of tax titles were checked to the treasurer's cash book, and the tax titles dis- claimed or foreclosed were checked with the recorded affi- davits on file. The tax titles held on March 30, 1937, were listed and verified by a comparison with the records in the Registry of Deeds.
A great deal of the time consumed in making this audit was spent in reconciling the tax title accounts, due to the- very large number of tax titles held and the complicated transactions involved. It was found that although the town has been appropriating $850 annually for the purpose of determining the validity of tax titles, and although a number of the tax title records bear the notation of the examining attorney that, in his opinion, the tax title is invalid, the tax titles involved have not been disclaimed and subsequent taxes: are still being added to these titles.
The tax possessions obtained by foreclosure of tax titles. during the period covered by this audit and on hand March 30, 1937, were set up on the accountant's ledger. In check- ing at the Registry of Deeds, it was found that three parcels.
333
STATE AUDITOR'S REPORT
1937]
had been foreclosed to the town by Land Court decrees but are still being assessed by the town to prior owners.
Further investigation showed that two of these proper- ties were occupied, but no income therefrom appears to have been received by the town. One of the occupants of the property stated that he was paying no rent but that he was negotiating with the original mortgage holder for the pur- chase of the property. It is recommended that action be taken to protect the interests of the town in all property obtained by foreclosure of tax titles.
The books and accounts of the tax collector were ex- amined and checked in detail. The taxes and assessments outstanding on the date of the previous examination were audited, and all subsequent commitments were verified and compared with the assessors' warrants for their collection. The collector's cash books were footed and the recorded collections were compared with the payments to the treasurer as shown by the treasurer's and the accountant's books. The recorded abatements were checked with the assessors' records of abatements granted, and the taxes and assess- ments transferred to the tax title account were reconciled with the records of tax titles held by the town.
The outstanding taxes and assessments were listed and proved, and were further verified by mailing notices to a large number of persons whose names appeared on the books as owing money to the town, the replies thereto indicating that the outstanding accounts, as listed, are correct.
The collector's cash balance on March 30, 1937, was 1 verified by actual count of cash in the office.
Attention of the tax collector is called to the provisions of Section 15-A, Chapter 60, General Laws, in regard to the ] payment to the town of demand fees on poll taxes.
The assessors' records of abatements granted were ex- amined and reconciled with the collector's commitment I books. The abatement record books were found to be in- ( complete, and it is therefore recommended that these books
X
334
TOWN DOCUMENTS
[Dec. 31
be kept up to date.
The computations of the tax rates for the years 1934 to 1937, inclusive, were examined and checked. It was found that the amount of estimated receipts used by the assessors as a deduction from the amount to be raised by taxation generally exceeded the sums actually received, thereby creat- ing deficits which tend to impair the financial condition of the town. Thus in 1935 there was a deficit of $12,491.29 in the estimated receipts account. In 1936 there was a deficit of $31,968.50 in the estimated receipts account, which deficit, offset by appropriation balances and additional commit- ments, left a net deficit in the revenue account for the year 1936 amounting to $22,749.49.
It was found that the assessors had used as a deduction on account of estimated receipts for the year 1936 an amount which was $26,575.51 more than the general limit and the excess authorized under Section 23, Chapter 59, General Laws.
In examining the tax rate computation for 1937, it was found that the assessors had used as a deduction on account of estimated receipts an amount which was $1,918.96 more than the general limit and the excess authorized under the above statute. It was also noted that a $7,000 appropriation for W. P. A. voted at a special town meeting held January 25, 1937, was not raised by the assessors; and that, although the sum of $7,943.55 was raised for overlay deficits, it was far short of the required amount, which was $22,305.30 as of March 30, 1937, and which, by the time the 1937 tax rate was figured, was increased by further abatements. It would also appear that the amount raised for the current year's overlay, namely, $2,763.61, cannot be justified in view of the normal amount of abatements that have been granted during preceding years. In fact, the current overlay is overdrawn at this writing.
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