USA > Massachusetts > Norfolk County > Weymouth > Town annual report of Weymouth 1944 > Part 8
Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).
Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15 | Part 16 | Part 17
Attached herewith is a photostatic copy of the above-mentioned cancelled check.
Furthermore, in the process of examining the accounts of the treasurer as treasurer of the municipal contributory retirement system, it was found, in reconciling the balance of the fund as called for by the books on July 18, 1944, with the cash in the banks and securities on hand, that an apparent shortage of $10,000 existed as of July 18, 1944. This apparent shortage in the Retirement Fund is due to the fact that a check for $10,000 drawn by the treasurer on July 11, 1944, payable to the Granite Trust Company for the purchase of Series G, U. S. Savings Bonds, was charged by the bank against the account of the Weymouth Retirement Board .at the Granite Trust Company but no bonds have been delivered by the bank to the town.
Appended herewith is a photostatic copy of the above-mentioned check.
The town treasurer resigned on July 14, 1944, at which time he signed a statement to the effect that he had been gambling at the horse and dog races for several years with money belonging to the Granite Trust Company, by whom he had been employed for the past 15 years as manager of the East Weymouth Branch of the bank and that he had covered up the shortages at the bank by holding deposits from day to day without proper enrty on the bank records. He stated further that in April, 1944, the shortage at the bank began to increase from day to day so that he covered up the shortage by replacing the funds taken from the bank with checks drawn by him on the account of the town of Weymouth, which checks up to July 11, 1944, were never put through for payment or converted into cash, but were simply used to balance the bank cash and were reported on his daily reports to the bank as cash although they were never cashed, thereby concealing his peculations at the bank. Furthermore, in his signed statement the treasurer admitted that on July 11 and 12 the checks for $10,000 and $15,000 previously referred to were put through for payment or were cashed at the Granite Trust Company and the proceeds used to cover his cash shortage at the bank.
On August 3, 1944, the town accountant wrote a letter to the Granite Trust Company inquiring as to the reason why the proceeds of the $15,000 transfer check were not credited to the account of the town at the Granite Trust Company although the check had cleared through the town's account at the Second National Bank of Boston.
The following reply, in part, was received from the Granite Trust Company by the town accountant to his letter of August 3, 1944:
Our records show that this check was cashed at
our East Weymouth branch office by George E. Curtin, at that time our teller at that office, and that we collected the amount of such check from the drawee, the Second National Bank of Boston.
As our records show that this check was cashed and
61
not deposited to the account of the Town of Weymouth at this bank, we have not credited the amount of this check to the account of the Town of Weymouth .. . "
On August 3, 1944, the town accountant, as secretary of the Weymouth Retirement Board, addressed a letter to the Granite Trust Company in- quiring about the disposition of the $10,000 check drawn against the funds of the retirement board at the Granite Trust Company for the purchase of Series G of United States Savings Bonds.
Below is an excerpt from the reply received by him from the Granite Trust Company :
". .. Our records do show that this check was paid in cash at our East Weymouth branch office by George E. Curtin, at that time our teller at that office, and that the amount of such check has been charged against your account with this bank. "
The audits of the treasurer's accounts as of March 20, 1944, and as of July 18, 1944, showed that all funds of the town were fully and properly accounted for by the treasurer, with the exception of $25,000 representing the proceeds of two checks cashed at the Granite Trust Company on July 11 and 12, 1944 The town accountant had also reconciled the treasurer's cash balance each month with the cash on hand and on deposit in the banks, these reconciliations showing that the town cash was intact and in agreement with the balances called for by the books and that none of the unauthorized checks referred to in the treasurer's statement had ever been put through for payment, with the exception of the two checks, previously referred to, which were put through in July. One of these checks for $15,000 was drawn by the treasurer on the Second National Bank to the Granite Trust Company as payee, the check being marked "Transfer" indicating that there was to be a transfer of funds from the town's account at the Second National Bank to the credit of the town at the Granite Trust Company. Checks similarly drawn were issued by the town treasurer from time to time and were properly credited by the Granite Trust Company. As to the $10,000 check drawn by the treasurer as treasurer `of the Retirement System, there appear in the left hand corner of the check, under the printed words "By endorsement this check is accepted in full payment of the following account", the following words written in by the treasurer: "Series G Bonds", indicating that the proceeds of the check were intended to be used for the purchase of $10,000 of Series G Bonds for the municipal retirement fund from the Granite Trust Company. The latter bank did not deliver the bonds to the retirement fund of the town, but instead cashed the checks for . the treasurer who apparently used the proceeds to reimburse the bank for a shortage in his accounts as teller or manager in the bank, in ac- cordance with his signed statement.
This is clearly a misuse of public funds, as they were used to pay a personal obligation of the town treasurer. Whoever cashed the town checks for the treasurer is presumed to have known that public funds may be used only for a legal or municipal purpose. If Curtin personally cashed the checks at the branch office of the bank, he did that as a bank employee, with full knowledge of his duties as a public official. All early and late court decisions dealing with this matter clearly point out the principle that if checks drawn on a municipal bank account are used in payment of personal debts of the town treasurer, the receiver of the checks are chargeable with notice of his misuse of town funds and are liable for the proceeds to the town:
"One who receives the check of a city in payment of an individual debt of its city treasurer has notice on the
62
face of the transaction that in the absence of express authority the check is invalid
Newburyport v. Fidelity Insurance Co. 197 Mass. 596
"A bank that acecpts in payment of a personal obligation of a fiduciary, trust funds which it knows to be such, or, with notice that trust funds are being wrongfully diverted, joins in assisting others to misappropriate such funds, is bound to account to the trust estate for the loss thereby sustained."
Banks v. Everett National Bank 305 Mass. 182
"In the type of cases relating to public officials the statu- tory limitation upon the authority of the official to deal with public funds is presumed to be known by all, and a bank knowingly receiving funds from a public official under circumstances contrary to statutes is chargeable with notice of the violation and put upon inquiry to ascertain the truth . . "
Employers Liability Assur. Corp. v. Hudson River Trust Co. 250 App. Div. 159 294 N.Y.S. 698,704
The books and accounts of the treasurer, as collector of water charges, were examined and checked in detail. The commitments were analyzed, the recorded collections were compared with the payments to the treasurer, and the outstanding accounts were listed and proved with the accountant's ledger accounts. Verification of the outstanding accounts was made by mailing notices to a large number of persons whose names appeared on the books as owing money to the town. Replies received from a number of consumers to the effect that their water bills were paid were investigated, and it was found that all such payments were made sub- sequent to the audit date of July 18, 1944. It would appear, therefore, that the outstanding acounts, as listed, are correct.
Appended to this report are tables showing a reconciliation of the treasurer's cash, summaries of the tax title and water accounts, as well as tables showing the condition of the trust, investment, and retirement funds.
For the cooperation received from the several town officials while engaged in making this examination, I wish, on behalf of my assistants and for myself to express appreciation.
Respectfully submitted, Herman B. Dine Assistant Director of Accounts
HBD:MMH
RECONCILIATION OF TREASURER'S CASH
Balance March 21, 1944: General Water
$405,009.21 167,127.81
$572,137.02
Receipts March 21 to July 18, 1944: General
$736,253.15 44,329.55
Water
780,582.70 $1,352,719.72
Payments March 21 to July 18, 1944: General Water
$784,524.20 45,841.15 $830,365.35
63
Balance July 18, 1944: General
Water
$356,738.16 165,616.21
522,354.37 $1,352,719.72
Balance July 18, 1944: General
Water
$356,738.16 165,616.21
$522,354.37
Cash in banks, in office, and in transit July 18, 1944:
In banks: General:
Granite Trust Company
$297,649.56
First National Bank of Boston
3,984.75
Second National Bank of Boston
35,000.00
Merchants National Bank of Boston
5,000.00
$341,634.31
Water:
Granite Trust Company
$55.034.99
South Weymouth Savings Bank
Book No. 13066
46,029.52
East Weymouth Savings Bank Book No. 25036
13,669.99
U. S. Treasury Bonds and accrued interest 50,021.70
164,756.20
In office, verified:
Water
100.00
In transit, verified: General
$103.85
Water
760.01
Cash variation July 18, 1944
863.86 *15,000.00
$522,354.37
This apparent shortage of $15,000 in the treasurer's general cash is due to the fact that a check drawn by the treasurer on July 12, 1944, transferring $15,000 from the Second National Bank of Boston to the Granite Trust Co. was not credited by the latter bank to the account of the town at the Granite Trust Co., although the Granite Trust Co. collected the $15,000 from the Second National Bank of Boston.
64
MUNICIPAL CONTRIBUTORY RETIREMENT FUND
Cash Variation
Cash
Deposits Book Value
Total
On hand March 21, 1944
$2,428.24
$10,711.01
$154,172.74
$167,311.99
On hand July 18, 1944
*$10,000.00
$3,612.15
$ 2,923.25
$181,861.75
$198,397.15
RECEIPTS
PAYMENTS
March 21 to July 18, 1944
Withdrawn from savings deposits
$13,401.00
Added to savings deposits
$5,613.24
Securities sold
22,408.19
Securities purchased
50,000.00
Profit on sale of securities
3,029.31
Expenses on sale of securities
80.43
Accrued interest on sale of securities
269.09
Amortization
97.20
Amortization-increase
97.20
Pensions
5,545.19
Contributions from members
5,543.54
Annuities
234.69
Town appropriations:
Refunds to members
632.44
Pension accumulation fund
25,226.00
Administration expense
5.63
Military leave reserve
840.34
Expense fund
609.50
Cash balance July 18, 1944 : In transit, verified
661.92
Income
1,968.56
Granite Trust Company
2,950.23
Cash on hand March 21, 1944
2,428.24
Cash variation July 18, 1944
* 10,000.00
$75,820.97
$75,820.97
*This apparent shortage of $10,000 in the Retirement Fund cash is due to the fact that a check for $10,000 drawn by the treasurer on July 11, 1944, payable to the Granite Trust Company for the purchase of series G U. S. Savings Bonds was charged by the latter bank against the account of the Weymouth Retirement Board at the Granite Trust Company, but no bonds have been delivered by the bank.
Balance July 18, 1944, per statement Balance July 18, 1944, per check book Outstanding check July 18, 1944, No. 1879
GRANITE TRUST COMPANY
$2,990.23
$2,950.23 40.00
$2,990.23
65
Savings
Securities
-
REPORT OF AN AUDIT OF
THE ACCOUNTS OF THE TOWN OF WEYMOUTH FOR THE PERIOD FROM MAY 9, 1941 TO MARCH 20, 1944
Made in Accordance with the Provisions of Chapter 44, General Laws
August 24, 1944
To the Board of Selectmen
Mr. Harry Christensen, Chairman Weymouth, Massachusetts
Gentlemen :
I submit herewith my report of an audit of the books and accounts of the town of Weymouth for the period from May 9, 1941 to March 20, 1944, 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, Assistant Director of Accounts.
Very truly yours,
Theodore N. Waddell Director of Accounts
TNW : MMH:FC
Mr. Theodore N. Waddell Director of Accounts
Department of Corporations and Taxation
State House, Boston
Sir:
As directed by you, I have made an audit of the books and accounts of the town of Weymouth for the period from May 9, 1941, the date of the previous audit, to March 20, 1944, and report thereon as follows:
The records of financial transactions of the several departments re- ceiving or disbursing money for the town, or committing bills for collection, were examined, checked, and verified by comparison with the reports and the records of the town accountant.
The books and accounts kept by the town accountant were examined, the appropriations and transfers being checked with the town clerk's records of town meetings and with the appropriation committee's record of transfers from the reserve fund. A balance sheet, showing the financial condition of the town on March 20, 1944, was prepared and is appended to this report. This balance sheet indicates that the town is in very good financial condition.
The books and accounts in the treasurer's department were examined and checked. The recorded receipts were analyzed and compared with the town accountant's ledger and with the records of the departments making payments to the treasurer, while the payments by the treasurer were checked with the selectmen's warrants authorizing the disbursement . of town funds.
The cash balance as of March 20, 1944, was proved by reconciliation of the bank balances with statements furnished by the banks of deposit, by verification of savings bank books, of cash on hand and in transit, and by inspection of securities which are part of the treasurer's cash.
The recorded payments of maturing debt and interest were checked with the amounts falling due and with the cancelled securities on file.
The savings bank books and securities representing the investment of the trust, investment, and retirement funds in the custody of the town treasurer were examined and listed, the income was proved, the transfers to the town and the disbursements were verified, and all funds as of March 20, 1944, were found to have been properly accounted for.
66
The tax titles taken by the town for unpaid taxes were examined and the amounts added to the tax title account were compared with the collector's records. The reported redemptions were checked with the receipts as recorded on the treasurer's and the accountant's books, the reported foreclosures were verified, and the tax titles on hand were listed, proved, and compared with the records in the Registry of Deeds.
It is recommended that the town treasurer, who is custodian of tax title deeds, keep a complete record of each tax title acquired by the town on approved forins.
As stated previously, part of the treasurer's cash is invested in United States war bonds which are carried at the cost value of $50,021.70, including accrued interest. In this connection, attention is called to the fact that the only statutory authority for the investment of town funds, other than trust funds, in war bonds is found in Chapter 4, Acts of 1942, and Chapter 4, Acts of 1943, which require a specific vote of the town meeting.
The books and accounts in the tax collector's department were ex- amined and checked. The taxes outstanding at the time of the previous examination and all subsequent commitments were audited and reconciled with the assessors' warrants issued for their collection. The payments to the treasurer were checked to the treasurer's cash book, the recorded abatements were compared with the assessors' record of abatements granted, and the outstanding accounts were listed and proved.
The assessors' computations of the tax rates for 1943 and 1944 were examined and checked and it was noted that a number of appropriations from available funds voted by the town were not considered by the as- sessors in the determination of the tax rates.
In this connection attention is called to Section 23, Chapter 59, General Laws, which requires that the assessors raise all sums appropriated since the last preceding annual tax assessment, and which also provides that deductions on account of appropriations voted from available funds in the treasury may be made by the assessors only upon the written approval of the Commissioner of Corporations and Taxation. All appro- priations voted by the town, whether they are to be raised by taxation or transferred from available funds in the treasury, should therefore be certified by the town clerk to the assessors, as required by Section 15-A, Chapter 41, General Laws.
The records of departmental and water accounts receivable were ex- amined and checked in detail. The recorded payments to the treasurer were compared with the treasurer's cash book, the abatements were verified, and the outstanding accounts were listed and proved.
The financial accounts of the town clerk were examined. The records of dog and sporting licenses were checked, the payments to the State being verified with the receipts on file and the payments to the town treasurer being compared with the treasurer's cash book.
The surety of the several town officials required to file bonds for the faithful performance of their duties were examined and found to be in proper form.
The records of licenses and permits issued by the selectmen, by the building and plumbing inspectors, and by the board of health were ex- amined and checked and the payments to the town treasurer were verified.
The accounts of the sealer of weights and measures and of the school department, as well as of all other departments collecting money for the town or committing bills for collection, were examined, checked, and re- conciled with the treasurer's books.
In addition to the balance sheet referred to, there are appended to this report tables showing a reconciliation of the treasurer's and the col- lector's cash, summaries of the tax, tax title, departmental, and water accounts, as well as tables showing the condition and transactions of the trust, investment, and retirement funds.
While engaged in making the audit, cooperation was received from the
67
officials of the town, for which, on behalf of my assistants and for myself, I wish to express appreciation.
--
HBD:MMH
Respectfully submitted, Herman B. Dine Assistant Director of Accounts
68
MUNICIPAL CONTRIBUTORY RETIREMENT FUND
Savings
Securities
Cash
Deposits Book Value
Total
On hand May 9, 1941
$3,337.64
$45,658.44 $ 40,168.14 $ 89,164.22
On hand at end of year 1941
$5,749.77
$42,805.36
$ 64,196.26 $112,751.39
On hand at end of year 1942
$2,654.18
$ 9,578.45
$125,282.63
$137,515.26
On hand at end of year 1943
$ 484.55
$10,944.23
$154,172.74
$165,601.52
On hand March 20, 1944
$2,428.24
$10,711.01
$154,172.74 $167,311.99
RECEIPTS
PAYMENTS
MAY 9,
1941 TO DECEMBER 31, 1941
Withdrawn from savings deposits
$ 2,853.08
Securities purchased
$23,776.86
Amortization-increase
251.26
Amortization
251.26
Contributions from members
10,135.26
Accrued interest on securities purchased
211.56
Town Appropriations:
Pension accumulation fund
22,330.00
Pensions
9,436.30
Expense fund
458.00
Annuities
148.88
Interest deficiency
172.46
Refunds to members
1,092.49
Income
1,630.91
Adminstration expense
501.49
Cash on hand May 9, 1941
3,337.64
Cash on hand December 31, 1941
5,749.77
$41,168.61
$41,168.61
69
1942
Withdrawn from savings deposits
$33,226.91
Securities purchased
$89,428.63
Securities sold
28,782.17
Amortization
439.91
Amortization-increase
439.91
Accrued interest on securities purchased
355.35
Contributions from members
15,417.88
Pensions
13,942.57
Gain on securities sold
335.97
Annuities
234.61
Town Appropriations :
Pension accumulation fund
23,078.00
Refunds to members
4,634.25
Expense fund
581.40
Administration expense
484.37
Income
4,561.86
Cash on hand December 31, 1942
2,654.18
Cash on hand January 1, 1942
5,749.77
$112,173.87
$112,173.87
70
1943
Securities sold
$20,204.55
Added to savings deposits
$ 1,365.78
Amortization-increase
249.35
Securities purchased
48,845.31
Contributions from members
15,684.42
Amortization
249.35
Gain on securities sold
1,576.36
Accrued interest on securities purchased
91.39
Town Appropriations :
Pensions
15,101.79
Pension accumulation fund
24,544.00
Annuities
411.88
Expense fund
583.05
Refunds to members
3,477.53
Income
5,169.64
Administration expense
637.97
Cash on hand January 1, 1943
2,654.18
Cash on hand December 31, 1943
484.55
$70,665.55
$70,665.55
JANUARY 1 to MARCH 20, 1944
Withdrawn from savings deposits Contributions from members Income Cash on hand January 1, 1944
$ $233.22
Pensions
$2,815.20
3,255.21
Annuities
120.41
1,517.13
Refunds to members
126.26
484.55
Cash balance March 20, 1944 :
Cash in office
603.06
Granite Trust Company
1,825.18
$5,490.11
$5.490.11
GRANITE TRUST COMPANY
$1,910.55
71
Balance March 20, 1944, per statement Balance March 20, 1944, per check book Outstanding checks March 20, 1944, per list
$1,825.18
85.37
$1,910.55
TOWN OF WEYMOUTH Balance Sheet - March 20, 1944 GENERAL ACCOUNTS
ASSETS
LIABILITIES AND RESERVES
Cash :
Temporary Loans : In Anticipation of Revenue 1944
$400,000.00
Water
Federal Withholding Taxes
3,350.66
Proceeds of Dog Licenses-Due County
146.40
Water Construction Deposits 273.00
Sale of Real Estate Fund
4,870.69
Fire Insurance Fund
602.02
Personal Property
43.99
Real Estate
2,551.60
2,595.59
Post-War Rehabilitation
2
Levy of 1943:
175,000.00
Poll
296.00
Overestimate 1943: State Assessment
148.45
Real Estate
59,043.05
George-Deen Fund
27.12
60,486.10
Unexpended Appropriation Balances: General Water
$1,269,545.81 198,866.89
Motor Vehicle Excise Taxes :
Levy of 1942
64.53
Levy of 1943
1,330.78
Levy of 1944
3,462.35
Overlay Reserved for Abatement of Taxes: Levy of 1942 Levy of 1943
$2,595.59 8,914.25
Special Assessments:
Moth 1942
1.50
11,509.84
Moth 1943
221.25
Revenue Reserved Until Collected : Motor Vehicle Excise Tax $4,857.66
Special Assessment 222.75
Tax Title
20,308.99
Tax Possession
19,321.66
Departmental
9,045.67
General
405,009.21 167,127.81
572,137.02
Accounts Receivable : Taxes:
Levy of 1942:
Investment Funds: Municipal Buildings Insurance $25,000.00 150,000.00
Personal Property
1,147.05
63,081.69
1,468,412.70 3,818.76
Reserve Fund-Overlay Surplus
4,857.66
222.75 20,308.99
Tax Titles Tax Possessions
19,321.66
Departmental : Health . 655.20
Street Public Welfare Old Age Assistance Park
297.41 3,619.94 4,223.12 250.00
Water
33,351.12
87,107.85
$102,931.78 34,199.11
137,130.89
Water:
Rates
29,619.62
Construction
1,774.27
Liens 1942
349.21
Liens 1943
1,608.02
33,351.12
Underestimates 1943 : State Assessments County Tax
1,066.87
5,775.38
6,842.25
73
Overlay Deficits: Levy of 1941 Levy of 1944
24.59
3,066.00
3,090.59
Revenue 1944 : Appropriations to be Provided for 1,874,554.73
Deduct :
Poll Taxes Committed 3,066.00
Estimated Receipts
Collected to Date
55,049.78
Available Funds Voted
256,299.97
314,415.75
1,560,138.98
$2,292,398.38
$2,292,398.38
9,045.67
Surplus Revenue : General Water
Net Funded or Fixed Debt : Inside Debt Limit Outside Debt Limit
$164,000.00 54,500.00
Inside Debt Limit : Schoolhouse Loans Outside Debt Limit : Water Loans
$164,000.00
54,500.00
$218,500.00
$218,500.00
TRUST
AND
INVESTMENT
FUNDS
Trust and Investment Funds: Cash and Securities : In Custody of Town Treasurer
$947,719.03
John C. Rhines Fund : Principal Income
$10,000.00
2,754.54
Laban Pratt Hospital Fund:
Principal
$300,000.00
Income
266,931.70
566,931.70
Quincy Tufts Fund :
Principal
$2,000.00 167.82
2,167.82
Walter C. Forsythe Library Fund
1,000.00
Augustus J. Richards Library Fund
5,000.00
Susan Hunt Stetson Library Fund
2,500.00
Charles Q. Tirrell Library Fund
1,000.00
Quincy Tufts Library Reading Room Fund
2,500.00
Quincy Tufts Library Book Fund
2,500.00
Charles Henry Pratt Library Fund
500.00
Arthur E. Pratt Library Fund
3,000.00
William H. Pratt Library Fund
2,798.80
12,805.88
Joseph E. Trask Library Fund Alida M. Denton Library Fund
700.00
Income
$12,754.54
74
DEBT ACCOUNTS
Elias S. Beals Park Fund : Principal Income
$1,000.00 108.94
1,108.94
LabanPratt Fountain Fund : Principal Income
$400.00
505.79
905.79
Quincy Tufts Frcc Lecture Fund : Principal
$5,000.00
Income
686.80
5,686.80
Municipal Buildings Insurance Fund
72,512.75
Quincy Tufts Cemetery Fund
500.00
Martha Hannah King Cemetery Fund
69.03
Post-War Rehabilitation Fund 250,776.98
75
$947,719.03
$947,719.03
MUNICIPAL CONTRIBUTORY RETIREMENT SYSTEM
Annuity Savings Fund
$87,158.83
Pension Accumulation Fund
70,818.40
Annuity Reserve Fund
3,151.70
Expense Fund
101.68
Undistributed Income
Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.