USA > Massachusetts > Essex County > Saugus > Town annual report of Saugus 1942 > Part 8
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460.18
Tailings (Unclaimed Checks)
498.19
Revenue Reserved Until Collected : Motor Vehicle Excise 3,274.92
Cypsy Moths 153.62
Sewers
6,854.45
Sewer Rental
2,132.07
Sidewalks
8.14
Tax Title
394,067.31
Tax Possession
30,248.59
Departmental 7,585.04
Water Rates 19,856.91
Water Liens
5,595.26
200,000.00 5,407.59
Advance for Petty Cash : Tax Collector 100.00
$ 54,231.31
Accounts Receivable:
Property Taxes 1935
17.14
Property Taxes 1936
9.60
Property Taxes 1937
835.81
Property Taxes 1938
1,301.57
Property Taxes 1939
1,843.14
Real Estate Taxes 1940
1,733.52
Personal Property 1940
258.22
Real Estate Taxes 1941
5,349.37
Personal Property 1941
705.30
125.13
Kimball Memorial Fountain
168,108.93
LIABILITIES AND RESERVES
Temporary Loans :
In Anticipation of Taxes
Surplus War Bonus Fund
Apportioned Sewer Assessment Revenue
Annuity Savings Fund
22,180.30
19,856.91
3,941.15
8.14
1.00
-
1942]
REPORT OF BOARD OF ASSESSORS
81
Deficit of Overlay Account 1939
602.65
Deficit of Overlay Account 1940
1,198.89
Appellate Tax Board Decisions
6,850.09
Veteran's Exemptions
32.39
Revenue Deficit
5,031.54
State Tax
39,150.00
State Audit of Municipal Accounts
2,579.16
Smoke Inspection Service
172.14
Parks, Metropolitan Area
7,572.34
Under Estimates 1941, State
76.43
County Tax
25,508.82
Tuberculosis Hospital
8,756.80
Under Estimates 1941, County
477.42
Overlay
25,005.05
Gross amount to be raised
970,667.49
Less Town Income, over estimates and Transfers of Avail- able Funds
289,373.10
Net amount to be raised
681,294.39
Net amount raised by Taxation on Polls and Property as fol- lows:
On Real Estate
615,285.90
On Personal Property
55,844.49
On Polls
10,164.00
On Sewers
4,495.46
On Interest on Sewers
1,615.20
On Water Liens
2,946.85
On Gypsy Moth
587.89
690,939.79
TAXES OF STATE, COUNTY AND TOWN COMMITTED TO THE TAX COLLECTOR
March 5, 1942
On Polls
$10,164.00
April 15, 1942
On Sewers paid in advance
527.51
April 15, 1942
On Interest paid in advance 5.84
June 13, 1942
On Sewers paid in advance
90.42
June 13, 1942
On Interest paid in advance
3.62
June 22, 1942
On Sewers paid in advance
266.19
June 22, 1942
On Interest paid in advance
7.35
June 18, 1942
On Water Liens
5,251.61
July 16, 1942
On Real Estate
615,285.90
July 16, 1942
On Personal Property
55,844.49
July 16, 1942
On Gypsy Moth
587.89
July 16, 1942
On Sewers
4,495.46
July 16, 1942
On Interest on Sewers
1,615.20
July 16, 1942
On Water Liens
2,946.85
August 6, 1942
On Sewers paid in advance
280.09
September 10, 1942
On Sewers paid in advance
155.72
October 5, 1942
On Sewers paid in advance
116.00
October 16, 1942
On Sewers paid in advance
135.49
October 16, 1942
On Interest paid in advance
.24
October 21, 1942
On Sewers paid in advance
218.46
October 21, 1942
On Interest paid in advance
.50
November 6, 1942
On Sewers paid in advance
100.14
November 6, 1942
On Interest paid in advance
.06
November 7, 1942
On Sewers paid in advance
328.00
November 7, 1942
On Interest paid in advance
1.37
681,294.39
82
TOWN DOCUMENTS
[Dec. 31
December 20, 1942
On Real Estate
292.59
December 20, 1942
On Real Estate
1,582.58
December 20, 1942 On Polls
68.00
December 28, 1942
On Sewers
3,991.71
December 30, 1942
On Motor Vehicle Excise
139.71
December 31, 1942
On Sewers
208.60
December 31, 1942
On Interest 2.16
TAX RATE PER ONE THOUSAND
$42.40
ABATEMENTS
Levy of 1936
On Real Estate
$ 71.20
Levy of 1937
On Real Estate
91.37
Levy of 1938
On Real Estate 223.10
68.00
Levy of 1939
On Real Estate
529.16
On Polls
342.00
Levy of 1940
On Real Estate
267.66
On Polls
338.00
Levy of 1941
On Real Estate and Personal
3,016.68
On Polls
364.00
Levy of 1942
On Real Estate and Personal
18,136.04
On Polls
1,306.00
MOTOR EXCISE COMMITTED TO TAX COLLECTOR
January 15, 1942
$
18.98
February 19, 1942
4,311.89
March 31, 1942
10,913.39
May 4, 1942
11,156.84
July 29, 1942
1,486.32
September 17, 1942
403.04
October 19, 1942
251.63
October 23, 1942
72.44
November 12, 1942
91.08
December 30, 1942
139.71
ABATEMENTS OF MOTOR EXCISE
Levy of 1934
723.10
Levy of 1935
1,312.41
Levy of 1936
4.12
Levy of 1937
114.07
Levy of 1938
85.10
Levy of 1939
351.54
Levy of 1940
225.41
Levy of 1941
136.17
Levy of 1942
894.55
SEPECIAL TAX COMMITTED TO TOWN ACCOUNTANT
City of Lynn, Water Department $ 782.28
Respectfully submitted,
GEORGE H. MASON ALBION R. RICE
On Polls
83
REPORT OF AN AUDIT OF ACCOUNTS
1942]
Report of An Audit of the Accounts of the Town of Saugus
For the Period from March 20, 1940 to October 16, 1941
The Commonwealth of Massachusetts Dept. of Corporations and Taxation Divisions of Accounts State House, Boston
June 5, 1942 To the Board of Selectmen Mr. George H. Quarmby, 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 March 20, 1940, to October 16, 1941, made in accor- dance with the provisions of Chap- ter 44, General Laws. This is in the form of a report made to me by Mr. Herman B. Dine, Assistant 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 instruc- tions, I have made an audit of the books and accounts of the town of Saugus for the period from March 20, 1940, the date of the previous examination, to October 16, 1941, and report thereon as follows:
The records of financial tran- sactions of the several departments receiving or disbursing money for the town, or committing bills for collection, were examined, checked, and verified with the books and records of the town accountant.
The books and accounts in the town accountant's office were ex-
amined and checked in detail. The general and appropriation ledger accounts were analyzed and proved. The recorded receipts were com- pared with the treasurer's cash book, while the payments as en- tered were checked with the trea- surer's cash book and with the treasury warrants. The appro- priations, transfers, and loans au- thorized, as recorded on the led- gers, were checked with the town clerk's records of town meeting votes and with the finance com- mittee's authorization of transfers from the reserve fund.
A trial balance was taken off, the necessary adjusting entries result- ing from the audit were made, and a balance sheet, which is appended to this report, was prepared show- ing the financial condition of the town as of October 16, 1941.
In checking the appropriations it was found that although the 1940 appropriation for W. P. A. was ex- pended in full at the close of the year, there remained unpaid bills at the end of 1940 aggregating $12,279.56. The incurrence of lia- bilities in excess of an appropria- tion is contrary to the provisions of Section 31, Chapter 44, General Laws.
The above mentioned bills were fully investigated by the Attorney General's Department with a view to determining what proof, if any, of the rendering of service or de- livery of goods was called for by the bills on file. Satisfactory evi- dence of delivery was obtained from vendors' certificates covering $6,- 090.04 of the total, according to a list filed in our office, and these bills may, in the opinion of the At- torney General's Department, be provided for under and in accor- dance with the provisions of Chap- ter 179, Acts of 1941. This state- ment is made only on the evidence obtained showing the town had the benefit of the service or material.
84
TOWN DOCUMENTS
[Dec. 31
The balance or any part of the re- maining unpaid bills may only be paid in case the requirements of Chapter 179 of the Acts of 1941 could be complied with.
It should be noted in this connec- tion that late in 1941 the town es- tablished an encumbrance system of accounting, which should elimi- nate the recurrence of the condi- tion described above.
An examination of the original bills and pay-rolls on file showed that several items of major equip- ment had been purchased on a "rental" basis and charged to the appropriation for W. P. A. The stipulation is these so-called ren- tal-purchase contracts is that, upon completion of a number of regular rental payments, the equipment will become the property of the town. The purchase of major equip- ment should be specifically provid- ed for by appropriation by the town, and such purchases should be clasified as capital outlays.
In connection with the road machinery fund, attention is called to the fact that receipts from the rental of highway equipment cred- ited to the fund may be used only by vote of the town appropriating a specific amount from such re- ceipts on hand for the maintenance and operation of road machinery or for the purchase of new equip- ment.
The books and accounts of the town treasurer were examined and checked. The cash book additions were verified and the recorded re- ceipts were compared with the ac- countant's books, with the records of the several departments collect- ing money for the town, and with other sources from which money is paid into the town treasury. The payments were checked with the selectmen's warrants authorizing the treasurer to disburse town funds and with the accountant's ledger, and the cash balance on October 16, 1941, was proved by reconciliation of the bank balances with statements received from the bank and by actual count of the cash in the office.
In connection with the reconcilia- tion of the bank balances, it was
necessary, in order to locate an error in a bank statement, to sort all checks for the period from July 1 to October 16, 1941, in order of their cancellation and to compare them with the statements from the bank.
The payments on account of maturing debt and interest were verified by comparison with the amounts falling due and with the cancelled securities and coupons on file
The savings bank books and se- curities representing the invest- ment of the trust funds in the cus- tody of the treasurer were ex- amined. The income was proved, and all transactions were verified and compared with the treasurer's and the auditor's books.
The securities and savings bank books representing the investment of the municipal contributory re- tirement system funds were per- sonally examined. The receipts, representing contributions by the city and by the members, as well as income from investments, were checked in detail. The disburse- ments were checked, and the cash balance was proved by actual count of the cash in the office and by re- conciliation of the bank balance with a statement furnished by the bank of deposit.
The treasurer's records of tax titles held by the town were ex- amined and checked in detail. The taxes transferred to the tax title account were compared with the tax books, the recorded redemp- tions on account of tax titles were checked to the treasurer's cash book, and the tax titles disclaimed and foreclosed were compared with the recorded affidavits on file. The tax titles held on October 16, 1941, were listed and checked with the records in the Registry of Deeds.
In order to reconcile the tax title account it was necessary to check in detail all postings of taxes, as- sessements, and interest added to the account, together with all re- demptions; and due to the very large number of tax titles held by the town, this procedure greatly increased the cost of the audit. It is therefore recommended that the
85
REPORT OF AN AUDIT OF ACCOUNTS
19421
tax title accounts be proved period- ically and reconciled with the town accountant's controlling accounts.
It was noted that the town treas- urer, at the request of certain town employees, has been making pay- roll deductions from the salaries and wages due the employees and transmitting the totals of such de- ductions to a hospital service cor- poration. As there is no provision of law which authorizes such de- ductions by the treasurer other than those for retirement systems or for purchase of defense bonds, the above practice should be dis- continued.
Appended to this report are tables showing a reconciliation of the treasurer's cash, a summary of the tax title account, together with schedules showing the condition and transactions of the trust and retirement funds.
The books and accounts of the collector of taxes were examined and checked in detail. The out- standing accounts at the time of the previous examination, and all subequent commitments of taxes and departmental accounts were audited and checked in detail.
The collector's cash books were footed, the recorded collections were compared with the payments to the treasurer and with the ac- countant's books, the recorded abatements were checked with the assessors' records of abatements granted and with the records of the departments authorized to grant abatements. The outstanding taxes, assessments, and departmental ac- counts were listed and reconciled with the accountant's ledger and were further verified by mailing notices to a large number of per- sons whose names appeared on the books as owing money to the town, the replies thereto indicating that the outstanding accounts, as listed, are correct.
It was found necessary to check the postings of cash, tax titles, and abatements in detail in order to locate the errors in the clerical work of the collecting department.
In checking the assessors' records, it was found that the detailed com- mitment lists of taxes, assessments, and water liens were in some in- stances not in agreement with the warrants for their collection issued to the collector, and that abate- ments to the collector did not agree with the amounts reported to the accountant. It is recommended that more care be exercised in proving commitments and reporting abate- ments to the town accountant.
The financial records of the town clerk were examined and checked in detail. The recorded receipts on account of town licenses, per- mits, recording fees, etc., were ex- amined and checked in detail. The payments to the treasurer were compared with the treasurer's and the accountant's books.
The records of dog licenses is- sued on behalf of the county and of sporting licenses, the proceeds of which are paid to the State, were examined, checked, and compared with the amounts due and paid to the town, county, and state.
A summary of the town clerk's receipts and a proof of the cash balance are appended to this report.
The surety bonds furnished by the town officials required by law to be bonded were examined and found to be in proper form.
The records of departmental cash collections by the sealer of weights and measures, by the building, plumbing, and milk inspectors, as well as by the health, school, li- brary, and cemetery departments, were proved.
Appended to this report are tables showing the financial tran- sactions of the several departments.
While engaged in making the au- dit, cooperation was received from all the town officials, for which, on behalf of my assistants and for myself, I wish to express apprecia- tion.
Respectfully submitted,
HERMAN B. DINE, Assistant Director of Accounts.
86
TOWN DOCUMENTS
[Dec. 31
DETAILED TABLES SHOWING THE FINANCIAL TRANSAC- TIONS OF THE SEVERAL DEPARTMENTS AND BALANCE SHEET AS OF OCTOBER 16, 1941 ARE ON FILE IN THE OFFICE OF THE TOWN CLERK AND TOWN ACCOUNTANT, TOWN HALL, SAUGUS, MASS.
Report of Town Accountant
December 31, 1942
To the Honorable Board of Selectmen
Town Hall Saugus, Mass.
Gentlemen:
I herewith submit my fifth an- nual report as Town Accountant for year 1942. The report is made in accordance with the State Sys- tem of Accounting and is set forth in the following schedules. In or- der to fully explain some of the major accomplishments during the past year, I respectfully submit the following explanations for your consideration :
1. GENERAL FINANCIAL CONDITION
At the close of the year, the var- ious appropriation accounts showed unexpended balances amounting to $22,737.00 which reverted to sur- plus revenue. This is the largest amount that has reverted to this account in the past ten years.
Outstanding temporary loans in anticipation of taxes have been re- duced from $250,000.00 to $200,- 000.00, a reduction of $50,000.00 for the year.
The sum of $45,764.82 was paid on outstanding tax title notes and no borrowing was made during 1942. This reduced the amount of outstanding tax title notes from $297,746.82 to $252,00.00
The amount of the total town in- debtedness was reduced from $1,- 069,246.82 to $922,000.00, a reduc- tion of $147,000.00 during the past year.
The appropriation required for maturities and interest in 1943 is $38,007.50 as against an appropria- tion of $65,810.00 in 1942. This shows a reduction of $27,802.50 over 1942.
In 1942, the sum of $25,000.00 was appropriated for W. P. A. pro- jects and during the year the sum of $19,063.35 was expended. The unexpended balance of $5,945.65 has been carried over into 1943 thereby eliminating any appropria- tion for W. P. A. projects in 1943.
2. UNPAID BILLS
For the first time in the past twenty years, all departments have operated within the limits of their respective appropriations and no unpaid bills are outstanding for the year 1942. It has given me much satisfaction in attaining this goal and it is my humble opinion that it can be attributed principally to the following reasons: first, the new encumbrance system of purchasing and accounting; second, a sufficient amount appropriated for a Reserve Fund; third, the cooperation of de- partment heads and responsible employees with the Accounting De- partment, and fourth, the annual audit of the accounts of the town by the State Division of Accounts.
However, there are unpaid bills of previous years and in the case of the W. P. A. bills, the results of the investigation by the Attorney General and State Auditor's Offices had to be awaited before final ac- tion could be taken. These unpaid W. P. A. bills were contracted in 1940 and part of the amount called for in a special article in the 1943 annual town meeting warrant rep- resents the total bill that were
87
REPORT OF TOWN ACCOUNTANT
1942]
investigated by the Attorney Gen- eral's office and approved for pay- ment by the State Auditors after consultation and agreement with the Attorney General's office.
There is one other unpaid bill for the Fire Alarm Division in the amount of $110.00 which, I have been informed, is for equipment purchased in 1934 and which has been and still is in use by this de- partment. The present Supt. of Fire Alarms took over this depart- ment in December 1941 and states that this equipment is an important part of the fire alarm system.
In view of the fact that proper affidavits have been filed with the approved bills in accordance with the provisions of the statute, I would recommend that these bills be paid.
3. ENCUMBRANCE SYSTEM OF ACCOUNTING
This system, which was started in November 1941, has now been in operation for a full financial year and has proven very successful. Difficulties experienced in 1941 have been overcome by making minor changes and this system is now re- ceiving the voluntary commenda- tion of some of its most outspoken critics when it was first introduced. The fact that there were no out- standing unpaid bills for 1942 at the close of the year should be sufficient proof that this system was a good investment and has proven its worth.
4. VICTORY TAX DEDUCTIONS
Effective January 1, 1943, the provisions of the 1942 Revenue Act whereby a 5% deduction must be made from the gross earnings of all employees, including elected of- ficials, after allowing certain cred- its must be complied with. This, in effect, means that a separate ac- count must be kept with each in- dividual who draws a pay check from the town and quarterly re- turns must be made to the Collector of Internal Revenue showing such deductions.
It was apparent that this would necessarily create new records and much additional detail work in or-
der to properly set up the books and records to handle this operation. The Finance Committee granted my request for $125.00 to purchase these records and have personnel record sheets printed.
Inasmuch as the detail work in- volved could not be handled by the present personnel of the Account- ing Department, the Board of Se- lectmen were consulted, the pro- cedure explained and they were re- quested to furnish additional cleri- cal help in this department. In view of the decreased activities of the W. P. A. and the probable shut- down of all W. P. A. projects in June 1943, the Board of Selectmen assigned Miss Elsie V. Bardh, clerk and certifying agent for W. P. A. projects, to the Accounting Depart- ment on December 7, 1942, with the provision that she be paid one half of the year from the W. P. A. ap- propriation and the other half of the year from the Accounting De- partment appropriation. This, of necessity, will increase the 1943 budget of the Accounting Depart- ment.
5. PERSONNEL RECORDS
During the past year, many re- quests for records of persons who have been employed by the town in past years have been made by the Federal Bureau of Investigation and other investigating agencies of the Federal Government. Up to the present time, no centralized system of personnel records have been kept by the town and it can be readily seen that the Accounting Depart- ment or Treasury Department could not furnish the required informa- tion in many cases.
Effective January 1, 1943, a per- sonnel record system will be set up and kept by the Accounting De- partment of all employees of record as of that date and all department heads will be required to furnish these records for all future em- ployees. The personnel record sheet will be set up for a period of thirty years or until 1971 and can be con- tinued indefinitely. The setting up and maintenance of this system is in line with good business policy. At the time of the writing of this report, the subject of making de-
88
TOWN DOCUMENTS
[Dec. 31
ductions for income tax payments, double victory tax deductions and forced savings is being discussed by the authorities in Washington and if any of these deductions are legislated, the personnel records will be invaluable, not only for a town record but for any record that may be required by any branch of the government at any time.
Balance sheets and detailed finan- cial reports have been furnished to various financial institutions, local individuals and organizations and the customary mid-year report of appropriations, expenditures and
available balances was given to the press. During the past year vital information was furnished the Fed- eral and State governments per- taining to the National Defense program.
In conclusion, I wish to thank the Honorable Board of Selectmen, the State Auditors, department heads and individuals for their co- operation during the year.
Respectfully submitted,
RALPH QUIRK, Town Accountant.
In accordance with the provisions of Section 50 of Chapter 41 of the General Laws, I have verified the cash on hand, December 31, 1942, by actual count and the cash in the banks was certified by reconciliation of the outstanding checks with the books and bank statement. In ac- cordance with the provisions of Section 53 of Chapter 41 of the General Laws, I have verified the various Trust funds and special deposits as of December 31, 1942, which are as follows:
GEORGE M. WILSON LIBRARY FUND:
United States Treasury Bond 314 % 44/46 $ 100.00
United States Defense Bonds 21/2% Series G. No. 687758 1,000.00
United States Defense Bonds 21/2 % Series G. No. 687759 1,000.00
Saugus Trust Co. Savings Account 50.00
Lynn Institution for Savings Savings Account
77.71
$2,227.71
BENJAMIN N. JOHNSON LIBRARY FUND :
United States Treasury Bond 31/8 % 46/49 $5,000.00
Saugus Trust Co. Savings Account 125.00
$5,125.00
SURPLUS WAR BONUS FUND:
Saugus Trust Co. Savings Account $5,407.59
CEMETERY PERPETUAL CARE FUNDS:
Saugus Trust Co., Lynn Five Sents Savings Bank and Lynn Institution for Savings Savings Accounts on Deposit January 1, 1942 $94,982.68
Bequests deposited in 1942 6,414.00
Interest received from bank, 1942
1,701.33
$103,098.01
89
REPORT OF TOWN ACCOUNTANT
1942]
DEDUCT:
State Audit adjustment
1.48
Interest on deposits paid town for care of lots December 31, 1942 1,701.33
1,702.81
Deposits in Savings Accounts December 31, 1942 $101,395.20
A detailed account of individual deposits for perpetual care of lots may be procured at the Treasurer's office, Town Hall, by persons desiring same.
RALPH QUIRK, Town Accountant.
1942 RECEIPTS GENERAL REVENUE
Taxes: Levy of 1942:
Real Estate
Personal Property Polls
$447,323.61 52,337.03 8,370.00
$508,030.64
Taxes: Prior Years:
Real Estate
$132,580.47
Personal Property Polls
590.00
From the Commonwealth:
Corporation Taxes
$14,737.36
Income Tax
67,619.20
82,356.56
Lynn Watershed Tax:
782.28
782.28
Licenses and Permits:
Selectmen:
Bowling and Pool
$ 28.00
Auctioneer and Grove
16.00
Victuallers
92.00
Hawkers and Peddlers
5.00
Liquor and Beer
9,059.00
Auto Dealers
25.00
Junk
5.00
Entertainment
370.00
Beano
8.00
All Other
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