APPENDIX G.

REPORT OF THE AUDITOR IN CHARGE OF THE ACCOUNTING DEPARTMENT.

BALBOA HEIGHTS, September 1, 1914. SIR: I have the honor to submit the following report of the transactions of the accounting department for the fiscal year ending June 30, 1914, including the transactions of the offices and departments which were consolidated into the accounting department on April 1, 1914.

ORGANIZATION.

The accounting department was established through a consolidation of the d partment of examination of accounts, the department of disbursements, and the office of the treasurer of the Canal Zone. It took over a part of the accounting work performed by the collector of revenues, by the executive office of the d partment of civil administration, and by the department of sanitation. The duties of receiving, disbursing, and accounting for funds in the United States, which were performed by the disbursing officer and the assistant examiner of accounts in Washington, were also transferred to the jurisdiction of the accounting department.

The department now consists of three main divisions—a division of accounts and audits under the immediate direction and control of the auditor, a division of disbursements under the paymaster, Mr. John H. McLean, and a division of receipts under the collector, Mr. T. L. Clear, the latter two divisions being under the supervision of the head of the department. The office of the department in the United States is in charge of the assistant auditor, Mr. B. F. Harrah, with Mr. Virgil C. Miller as disbursing clerk. To the latter is assigned the duty of paying all bills in the United States and the making of the small collections there. The order establishing the permanent. organization for The Panama Canal provided that cost keeping should be a part of the work of the accounting department, but it was deemed inadvisable to make any changes in this work until the offices were consolidated in the administration building at Balboa Heights.

Prior to the reorganization of April 1, 1914, certain other changes were made which increased the duties assigned to the department. In January, 1914, the preparation and rendition of property returns by storehouses was discontinued and a division established in the office of the examiner of accounts to prepare statements of receipts, issues and balances of stores under a somewhat detailed classification, and to check the stock in storehouses and stock records on the general plan followed by railroads and other large commercial enterprises. On April 1, 1914, the rendition of all property returns was discontinued and arrangements made to check the original record of property in department and division offices. The force employed in accounting work for the commissaries of the Panama Railroad Co. and

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weddarly shown by the restuttarakan ( wood altor payment in the office of the auditor tortze V Returns from the Auditor for the Var Department1a7 The He eleven montes beginning day. AA E Over 40,660 pazil tems vere rassed · Br ardul peamination and chers in the ice t sends and anditor, a total during te teren Tontis Forppm The amount involved tia no Averse It math, making a total of over $10 diy fodol of 32 payroll items, in moum 220 4 Hos Noulitor for the War Department. thobial atualoverpayments, amounting to $1.5 Bround ware made from the employees vernd cam neemt of which employees of nearquired to pay $25.50.

EPRESENT ACCOUNTING SYSTEM.

Port of Photodior and during November and

1912, * committee from the Treasury Depar16 11 11 11arnick, Assistant Comptroller of e farding of the Comptroller's office, and l dfg at Plus Auditor for the War Department dofelne the seeunting system of The Pana toon tus codations which the accounting on the bo Hoy Becounting work of the United States tog otthon of the Treasury. No final conc It promittee and made effective on the Hos han in organization on April 1, 1914. of anal munt the committee to the Isthmus Auditor for the War Department, himself, Ho commition devoted about six weeks to pl approved certain forms for use in conHe recounts and made certain sugi rolating thereto. The forms of His Comptroller of the Treasury have been bending a comideration of this motion which will arise in connecmeerdpon which were made have been held tion with the actual operation of the canal.

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