Mechanical system of budgetary control accounts adopted by the city of Knoxville, Tenn.
(Date is approximate.)
Abstract
When the new City Manager took charge, one of the first problems confronting him was to have an adequate system of accounts installed that would conform to the plan of organization and meet the administrative requirements. This system was devised and installed by the Municipal Department of the firm of Scott, Charnley & Company, Certified Public Accountants, Charlotte, North Carolina. The system met all of the requirements in every particular. The entire transactions of all of the departments that involve the necessity of an account record being made thereof, are furnished the Bureau of Accounts daily on especially prepared forms. Upon receipt of these daily reports they are audited and vouchered. The voucher provides for a complete and full explanation of the transactions and the accounts to be charged and to be credited, divided as to Funds, Organized Units, Functional Units, and Object Accounts. Every account affected is shown on the voucher so as to facilitate the automatic machine posting work. The account keeping is in effect a perpetual closing of the books. As soon as the vouchers representing the transaction of the day are posted to the various accounts, the Daily Financial Statements are immediately prepared and submitted to the City Manager, which is done during the day following the date of the departmental reports. The Daily Reports to the City Manager contain all information required for administrative purposes, including the condition of every Departmental Appropriation Account. The information daily presented to the City Manager in these daily reports during the year enabled him and his Directors to so economically administer the fiscal affairs of the City and govern the Budget Commitments that the success of the administration is clearly reflected in the final results of the year as shown by the annual audit which shows that, in effect, there was a saving of $465,295.81.