USA > Massachusetts > Middlesex County > Reading > Town of Reading Massachusetts annual report 1948 > Part 9
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The books and accounts of the town accountant were examined and checked with the treasurer's books and with the records of the several departments collecting money for the town.
The appropriations and transfers as entered in the ledger were checked with the town clerk's record of appropriations and transfers voted by the town and with the records of the finance committee of transfers from the reserve fund.
The ledgers were analyzed, the necessary adjusting entries were made, and a balance sheet was prepared showing the financial con- dition of the town on November 15, 1947.
The books and accounts of the town treasurer were examined and checked. The cash book was footed and the receipts as recorded were compared with the town accountant's books and with the records in the various departments collecting money for the town, while the payments were compared with the approved warrants. The cash bal- ance on November 15, 1947 was proved by reconciliation of the bank balances with statements furnished by the banks of deposit, by exam- ination of a savings bank book, and by actual count of the cash in the office.
The transactions of the several trust, investment, and retirement funds in the custody of the town treasurer were verified, and the securities and savings bank books representing the investment of these funds were personally examined and listed.
The deductions from employees' salaries and wages for federal taxes and Blue Cross were listed and reconciled with the amounts due and paid to the federal government and to the Massachusetts Hospital Service, Inc.
The reported payments on account of debt and interest were com- pared with the amounts falling due and with the cancelled securities and coupons on file.
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 accounts were compared with the town collector's books, the recorded redemptions on account of tax titles were checked to the treasurer's cash book, and the tax titles foreclosed were verified. The tax titles held on November 15, 1947 were listed and checked with the records in the Registry of Deeds.
The books and accounts of the town collector were examined and checked in detail. The outstanding accounts at the time of the previous audit and all subsequent commitments of taxes, motor vehicle and trail-
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er excise, assessments, departmental, and water charges were analyzed and checked. The collections as recorded on the cash books were com- pared with the postings on the commitment books, the payments to the treasurer were compared with the treasurer's records, the abatements were checked with the assessors' and departmental records of abate- ments granted, and the outstanding accounts were listed and reconciled with the control accounts as shown in the accountant's ledger.
Considerable time was consumed in checking the accounts of the water department prior to the time the accounts were committed to the town collector for collection.
The assessors' records of abatements granted were reconciled with the town collector's books and with the accountant's ledger. The as- sessors' warrants for the commitment of taxes, motor vehicle and trailer excise, assessments, and water liens were examined and checked with the detailed lists. The records of apportioned assessments were ex- amined, and the apportioned assessments not due were listed and reconciled with the accountant's ledger.
The records of the selectmen for licenses and permits issued were examined and checked, and the payments to the treasurer were verified.
The town clerk's records of dog, sporting, and the town licenses issued and of fees collected were examined and checked, the payments to the town treasurer were compared with the treasurer's cash book and the town accountant's ledger.
The surety bonds furnished by the several officials of the town for the faithful performance of their duties were examined and found to be in proper form.
The records of receipts of the police department on account of ambulance fees, bicycle registrations, and miscellaneous collections were examined and checked. The payments to the treasurer were com- pared with the treasurer's cash book, and the cash on hand on December 26, 1947 was verified.
The records of the building inspector on account of receipts for permits issued were examined and checked. The applications were checked to the cash book, the cash book was added, and the payments to the treasurer were verified.
The records of the sealer of weights and measures were examined, the field books being checked to the office books, and the payments to the treasurer were verified.
The records of the sealer of weights and measures were examined, the field books being checked to the office books, and the payments to the treasurer being compared with the treasurer's cash book. The cash on hand on December 19, 1947 was verified.
The books and accounts of the health department were examined and checked in detail. The receipts from milk, oleomargarine, and
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miscellaneous licenses issued were compared with the recorded pay- ments to the treasurer, and the cash on hand on December 19, 1947 was verified.
The records of receipts of the school department on account of cafe- teria lunches, etc., were examined and checked with the payments to the treasurer, and the cash on hand on January 15, 1948 was verified.
The receipts of the library department from fines were checked, and the payments to the treasurer were verified.
Th books and accounts of the municipal light department were ex- amined and checked. The cash book showing the daily receipts was analyzed and compared with the payments to the treasurer as recorded on the treasurer's cash book, the discounts and abatements were veri- fied, the outstanding accounts were listed and reconciled with the town accountant's controlling accounts, and the cash on hand on December 27, 1947 was verified.
The records of guarantee deposits for electric light services were examined. The refunds to depositors were verified and the balances on hand were reconciled with the books of the municipal light depart- ment and of the town accountant.
The records of guarantee deposits for sewer house connections were examined. The refunds to depositors and transfers to the town were verified, and the balances on hand were reconciled with the accountant's books.
The records of receipts of the cemetery department on account of the sale of lots and graves, annual care, interments, etc., were examined and checked and the payments to the treasurer were verified.
In order to verify the outstanding tax, motor vehicle and trailer excise, departmental, municipal light, and water accounts, verification notices were mailed to a number of persons whose names appeared on the records as owing money to the town, the replies received thereto indicating that the accounts, as listed, are correct.
There are appended to this report, in addition to the balance sheet, tables showing a reconciliation of the treasurer's cash, summaries of the tax, motor vehicle and trailer excise, assessment, tax title, tax possession, departmental, municipal light, and water accounts, as well as schedules showing the condition and transactions of the various trust, investment, and retirement funds.
The books and accounts under the new system of accounts were opened as of January 1, 1948.
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 accounts, follows:
Journal for Town Accountant
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Cash book for Town Accountant
Ledger for Town Accountant Classification book for Town Accountant
Cash book for Treasurer Check register 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 receipts
Schedule of tax abatements allowed
Schedule of motor vehicle and trailer excise abatements
Voucher folder
General department payrolls
School department payrolls
Monthly statements Departmental bills
All of these books and forms are arranged so as to simplify the reporting and making possible a proper check on the accounting of public moneys; also to insure a classification of both receipts and pay- ments. All moneys received from every source and paid to the treasurer are also reported to the town accountant, 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 debiting and credit- ing of items in the ledger, such as opening entries, budget appropriation entries, the entering of tax commitments, the abatement of taxes, ac- counts receivable, and all entries which are not strictly cash book trans- actions.
It is important that all journal entries state clearly the ledger ac- counts which are to be debited and credited; also that a full explanation of the entry be made, in order that the transactions may be fully under- stood by any one examining the accounts.
Cash Book (for Town Accountant) - This is a bound book similar to those used in ordinary commercial accounting; in this book should
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be entered all transactions involving the receipt of 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 reported to the Town Accountant; 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 ac- counts, 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
Fifth, Trust, investment and retirement funds
From the ledger, information relative to the condition of the several appropriations may be obtained readily and the administrative officers may keep constantly informed of the amounts expended; also of the amounts available for the balance of the year. This information 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 exhausted 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 students 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 payment.
From this book definite information can readily be obtained of every cash transaction of the town, but its chief object is to furnish
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classification in a scientific manner, regardless of the method of making appropriations.
This book is also designed to bring the costs of each particular func- tion or service together, so that by knowing the facts 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 book especially designed for the recording of all of the cash receipts and disbursements of the trea- sury department in one book.
Cash Register (for Treasurer) - This book consists of loose-leaf forms which, placed in the binder provided for the purpose, form the book in which all the transactions with the banks are recorded. It will show at a glance the condition of the accounts in any of the depositories of the Town.
Schedule of Bills Payable - On these sheets each department should list all bills approved for payment, and should forward them, accom- panied by the original bills, to the town accountant. 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 approval, the bills first having been checked by the town accountant and compared with the several appropriation accounts to which they are chargeable. The selectmen having signed the war- rant, it is passed to the treasurer as his authority for payment.
Under the statute, the selectmen are required to approve bills before they are paid by the treasurer, and by using the treasury warrant they can give greater attention to the bills and appropriation accounts with- out consuming additional time.
Schedule of Collector's Payments to Treasurer - These are especial- ly designed forms for the reporting to the town accountant of payments made to the treasurer by the collector. From these reports the town ac- countant is enabled to classify properly the collector's receipts and verify the receipts reported by the treasurer.
Schedule of Departmental Payments to Treasurer - This form is for the use of departments, except those for which special forms are pre- pared, for reporting payments to the treasurer.
Schedule of Treasurer's Receipts - The Treasurer will use these forms in reporting the cash receipts to the town accountant. They form the basis of the debit entries in the town accountant's cash book, and together with the schedules of payments to the treasurer, serve as an automatic check on the cash account, furnishing the accountant with the necessary information for keeping his accounts up to date at all
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times, and also enabling statements to be drawn off showing actual cash transactions. By the use of printed forms for the reporting of all items involving cash, but little time is required for reporting the same.
Departmental Bills - These are bound in book form and are made out in triplicate by all general departments against persons from whom money is due the town for the sale of materials or for services rendered. One copy is sent to the person to be charged, as a demand for the pay- ment of the bill, another is given to the treasurer as his collection record, and the third, which is not detachable, remains in the book as the copy of the department.
Schedule of Tax Abatements Allowed - This form is for the use of the assessors in reporting abatements to the town accountant, so that he may credit the collector with these items in addition to his cash payments to the treasurer. On the town accountant'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 town accountant's ledger will show in his collector's account the exact amount of outstanding taxes.
Schedule of Motor Vehicle and Trailer Excise Abatements -- This form is for the use of the assessors in reporting to the town accountant the abatements granted on account of motor vehicle and trailer excise.
Voucher Folder - This form is for the use of the town accountant and is designed for the purpose of securing uniformity in the filing of bills.
General Department Pay-Rolls - These are to be used by all de- partments, except the school department, in making up their weekly or monthly payrolls, and are designed for the purpose of securing uniformity in the payrolls of all departments.
School Department Pay-Rolls - These are especially designed for the use of the school department, provisions being made for showing the gross amount of salary due each teacher or employee, the amount of deductions, the net amount received by each person, and the total amounts of the several deductions.
Monthly Statements - These forms are used by the town accountant in notifying each department of the warrants drawn against its appro- priation and the balance subject to draft.
Revenue - Upon receipt of notice from the town clerk of appropri- ations voted by the town to be raised by taxation, a journal entry should be made debiting revenue and crediting the proper appropriation ac- counts. When the warrant for poll and property taxes is delivered to the collector, the account should be credited and taxes debited. Revenue
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should also be debited with the amount of the state taxes, county taxes, and overlay raised, and the respective accounts credited.
At the close of the year, a journal entry should be made debiting all unexpended appropriation accounts (the object for which the ap- propriation was made having been completed), and crediting revenue. The estimated 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 receipts deducted by the assessors in determining the amount to be raised by taxation should be debited to the estimated receipts account and the revenue account credited; as cash is received, estimated receipts should be credited and cash debited.
Taxes (Poll and Property) - Upon the delivery of the assessors' warrant for the collection of taxes, a journal entry should be made debiting taxes with the total amount of the commitment and crediting revenue.
As money is paid into the town treasury, cash should be debited and the tax account credited. When poll or property tax abatements are granted by the assessors, a journal entry should be made crediting taxes and debiting overlay.
Commonwealth of Massachusetts, Veterans' Benefits - This account represents the amount due from the Commonwealth for disbursements during the previous year. Upon receipt of money from the State, cash should be debited and Veterans' Benefits credited. At the close of the year, a journal entry should be made debiting Veterans' Benefits due from the Commonwealth and crediting the Departmental Revenue with the amount of disbursements during the year.
Public Welfare Department Accounts Receivable - When bills are sent to the State, cities and towns, or individuals, for aid rendered per- sons not having settlement in the town, a journal entry should be made debiting the public welfare department accounts receivable and credit- ing departmental 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 poll or property tax abatements are granted by the assessors, a journal entry should be made debiting overlay and crediting taxes for the amount of the abatements. 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
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overlay reserve fund.
Overlay Reserve Fund (Overlay Surplus) - This account represents the surplus or difference between the 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 anticipation of revenue, the cash account should be debited and the revenue loan ac- count credited; when the loan is paid, a warrant should be drawn, revenue account debited, and cash credited.
Departmental Revenue (Not Available Until Collected) - This ac- count 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 estimated receipts account and departmental revenue should be debited.
Net Funded Debt - When debt is incurred by the issue of bonds or notes (for other than temporary 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 and Investment 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 credited. A warrant should be drawn authorizing the treasurer to deposit the amount in the savings bank, cash should be credited, and trust and investment funds (cash and securities) debited.
As income is 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 withdrawals should be entered on the books by debiting trust and investment funds (cash and securities) and crediting the specific fund account.
Conclusion - Cooperation was received from all town officials dur- ing the progress of the audit and the installation of the system, for which, on behalf of my assistants and for myself, I wish to express appreciation.
Respectfully submitted, HERMAN B. DINE (Signed) Assistant Director of Accountants
HBD:MC
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NOTICE TO PARENTS, HOUSEWIVES, PHYSICIANS AND MID-WIVES
Your attention is called to the sections below taken from the revised laws. Blank forms for return of birth can be obtained from the Town Clerk.
General Laws, Chap. 46, Sec. 3 (Tercentenary Edition) (As Amended By Chapter 326, Section One, Acts of 1939)
Every physician, or hospital medical officer registered under section nine of chapter one hundred and twelve, in this chapter called officer, shall keep a record of the birth of every child in cases of which he was in charge, showing date and place of birth, the name, if any, of the child, its sex and color, the name, age, birthplace, occupation and resi- dence (including the street number, if any, and the ward number if in a city) of each parent, the maiden name of the mother and the name of the physician or officer, if any, personally attending the birth. If the child is illegitimate, the name of and other facts relating to the father shall not be set forth except upon written request of both the father and mother; provided that if an illegitimate child shall have become legitimate by the intermarriage of his parents and the acknowledgment of his father, as provided in section seven of chapter one hundred and ninety, prior to the mailing or delivery of any report herein required, such report shall read in all respects, as if such child had been born to such parents in lawful wedlock. Said physician or officer shall, within 15 days after such birth, mail or deliver to the clerk or registrar of the town where such birth occurred, a report stating the facts herein above required to be shown on said record and also the said written request, if any; provided that if said report is not so made within forty-eight hours after such birth, said physician, or officer shall, within said forty- eight hours, mail or deliver to said clerk or registrar a notice stating the date and place of the birth, the street number, if any, the ward number, if in a city, and the family name. Upon presentation to him of a cer- tificate of the town clerk stating that any such birth has been duly reported, the town treasurer shall pay to such physician or officer a fee of twenty-five cents for each birth so reported. Any physician or any such officer violating any provision of this section shall forfeit not more than twenty-five dollars. The said town clerk or registrar shall file daily with the local board of health a list of all births reported to him, showing, as to each, the date of birth, sex, color, family name, residence; ward and physician or officer in charge.
Within sixty days after the date of the birth of any child born in the commonwealth with visible congenital deformities, or any condition
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apparently acquired at birth which may lead to crippling, the physician in attendance upon said births shall prepare upon a form provided by the state department of public health and file with the clerk of the town where such births occurred a report setting forth such visible congenital deformity, or any condition apparently acquired at birth which may lead to crippling.
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