Show T OF boid 1100 BOND auditor finds no account kept on bond issue or settlement taken of bond sales certified accountant william T reid who had been awarded d the contract for auditing funds and books of sevier county for a period of four years beginning january 1 1925 and ending december 31 1928 has completed his work ork and submitted to the county commissioners his findings with comments thereon the report which was accepted in the regular meeting of the county commissioners monday is in no way flattering to the former county ad administration and the only one receive receiving commendation from the auditor is county treasurer E C about whom the comments state the treasurers treasur ers records here re bened to are splendid in form and especially well kept this in in particular refers to the receipts from tax redemptions ons which caused so much trouble in the city treasury of salt lake city regarding receipts from all other sources the auditor states that the problem of properly charging the treasury with the correct amount covering all monies received was indeed difficult because not all income was receipted for this particularly applies to receipts from palmer bond mortgage company in their part payments on road funds an item of from this source was never received by the treasury but was sent cent directly to the state road commission by the palmer bond mortgage company presumably at the request of the county commissioners as no minute order was recorded A recommendation then is made in reference to bank credits for interest on the daily balances balance which have been made on bank statements the auditor recommends that the banks issue checks to the county treasurer for those interest inte int iest elest items so that all may inay be receipted for and recorded in the cash book with all income recorded in this manner it is then most essential that earh each and every bank deposit made by the treasurer covers a definite number of receipts the auditor suggested certain deposit forms for tins this purpose and says that they have been used since that time most satisfactorily by following this procedure all revenue can be checked to the treasurers treasur ers records and subsequently into the depository banks where it belongs until drawn out under proper authority the examination of the justice of peace docket disclosed some items paid for fines which had bad not been delivered to the treasurer or to the state fish and game commission but have been remitted since by the former county attorney the auditor says in this connection As a cash book was not employed in which to tc continued on page eight status of road bond account is perplexing continued from page one record receipts of cash these items were posted direct to the ledger accounts during the audit this principle was discussed and the I 1 treasurer treasur has become acquainted with methods of accounting which will greatly improve the recording for receipts BS previously used an irregularity irregular it i is pointed pointe d out in the audit regarding disbursements hy by check and warrant in this respect the report says there have been a limited nuri number iber of warrants paid out by the clerk under special ciders of the commissioners not in meeting the clerk has been advised that hat claims covering such expenditure must be presented by him the following meeting and there stam stamped P ed with the regular approval of the commissioners sio ners this practice should be discouraged cou raged as much as possible recommendations then are mude on how to keep warrants properly recorded and the goes on it is certainly unwise for the commissioners ners to fail to supervise and require a control for all expenditures and keep a close eye on the current condition of the funds these requirements as I 1 have reque requested requited ted will necessarily keep the warrant register up to date and correctly so such supervision will minimize errors and aid the county officials in efficiently accounting for add rov rev 11 denue nearly one half of the report is devoted to the condition of the road bonds which were voted on to the amount of in 1922 these thes bonds have been sold in three sales the first in july 1922 in the aggregate sum of the second of was made in april 1923 and the third sale of in stay may 1923 regarding this third and largest sale we quote from the report no accounts were vere kept of the bond issue or settlement taken of bond sales and the commissioners meetings contained nothing relating to it except the sales a stated to wit that they were sold to palmer bond mortgage company by an the road bond account and road bond interest account I 1 have set act up exhibit D statement of condition of road bonds and balance unpaid to the county as of december 31 1928 exhibit D shows that the balance due to the county for bond sales amounts to the recovery of which is somewhat doubtful the report then goes on further investigation disclosed that in the month of august the county commissioners were in formed by the palmer bond mortgage company that the company was unable to pay t the he balance due for the sale of the road bonds bond the amount then outstanding approximated 1 following a considerable number of conferences and after carefully considering the best methods to employ to recover on the indebtedness to the county the commissioners took over all the assets accessible belonging to palmer bond mortgage company the assets turned over consisted of shares share of class B stock in the suburban water company and a number of stocks and bonds prom notes mortgages and other securities an exact recoil of which was not obtainable the suburban water rater company stock rights contained an executory contract which must be fulfilled to establish any potential value the asset consists of one half interest in the suburban water company a utah corporation this company possesses assesses oss esses a reservoir site water rights water exchanges water mater filings and a number of other assets at the mouth of little cottonwood tonu creek about fourteen miles from salt lake city after carefully examining the value of the property and consulting people interested te in salt lake city the county officials were impressed with the necessity of carrying out the contract feeling that in so doing they would recover the full amount due the county during the process of working out the affairs of the suburban water company and while the plans have been made for the sale of the property to salt lake city the company has been engaged in considerable abl litigation for the purpose of establishing its rights under the agreement which the palmer bond mortgage company had with th the e co owner leland inland H kimball to N which b contract the county succeeded it became necessary to finance the company during the progress of the litigation gation and to pay the necessary and incidental carrying charges that were involved for this purpose and to reduce the outstanding indebtedness a number of the securities sec unties have been disposed of the present outstanding indebtedness from the palmer bond mortgage company amounts to as reflected in exhibit D the net securities remaining on hand band are given in the report as of stock in the defunct palmer bond mortgage company one share of stock in the suburban water company and twenty four notes past due clue in the suburban water company amounting to 1 and then it goes on my illy audit did not include an examination amin ati on of the he status of the suburban water company no records have been kept in the county offices of the assets turned over by palmer bond mortgage company neither are arc there records of the actual assets liquidated nor how the proceeds were as exhibited in schod sched ule D therefore the above explanation is given under the limitations as stated the lack of records was most perplexing during the audit of this phase of the work and it cannot be too severely condemned it should be thoroughly u understood by all county officials that ci a complete record must be made of each and every transaction that affects the county revenues or interests in any manner whatever the county treasurer is the custodian of all couri county funds and securities and no money or securities can be legally received or disbursed other than through his office the report closes 1 I have enjoyed the cooperation given me and it has been my strictest endeavor not only to record the true condition of affairs but to have rendered assistance and council in establishing a system of accounting that will exhibit a true and alid complete history of the financial transactions |