Practical Municipal Accounting 
 
 A Brief Description and Summary 
 
 of the 
 
 Modern Uniform System of Accounts 
 
 Installed in the Offices of the 
 
 CITY OF OAKLAND, CALIFORNIA 
 
 Under the Direction of I. H. Clay, City Auditor 
 
 Illustrated by Graphic Charts 
 
   \^-\v^r'-^':-:v~^ 
 
 KLINK, BEAN AND COMPANY 
 
 Public Accountants 
 
 San Franciico— Los Angeles 
 
 1916 
 
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 ^^s^ 
 
 9 
 
INDEX 
 
 Page 
 
 FOREWORD 4 
 
 PRACTICAL MUNICIPAL ACCOUNTING..- 5 
 
 APPENDIX: 
 
 City of Oakland Balance Sheet, as of Sept. 30, 1915- 14 
 
 Consolidated Statement of Revenues and Expenses 15 
 
 Chart of Accounting Organization 1 7 
 
 Chart of Budget Schedule 19 
 
 Chart of Consolidated Balance Sheet 21 
 
 Chart of Revenues 23 
 
 Chart of Expenses of Department of Public Health and Safety (a 
 typical department shown as an illustration) 25 
 
 344031 
 
FOREWORD. 
 
 A new system of municipal bookkeeping, embodying the 
 latest advances of accounting science, has recently been intro- 
 duced in the departments and offices of the City of Oakland. 
 
 For six months, or since July ist, the new system has been 
 in full operation, currently recording and automatically report- 
 ing the essential facts connected with every municipal trans- 
 action, large and small. For the first time, every dollar of 
 revenue and expense is subject to responsible control, adminis- 
 trative officers are in possession of properly assembled records 
 and statistics for the better management of their departments, 
 and intelligible reports are available for the public, showing 
 every detail of what the City does, how much it does and at 
 what cost. 
 
 In the opinion of the officials, the installation of the new 
 accounting system has been one of the most important civic 
 undertakings in the history of Oakland. It is recognized that 
 right accounting is the fundamental requisite to efficient gov- 
 ernment; that it underlies every permanent reform. Under the 
 new system, Oakland can become one of the best governed 
 cities in America. 
 
 What such accounts mean to a city, to the officers charged 
 with the management of its affairs and to the public that pays 
 the bills can best be explained by a brief discussion of the 
 nature and functions of accounting and by comparing the 
 present system with the methods and practices in use in the 
 City ijt 'Oakland :(tL-ityp4cal city) before July i, 1915. 
 
 ;. : ; •: ." •.•;: : : • KLINK, BEAN AND COMPANY. 
 January i, 1916. 
 
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PRACTICAL MUNICIPAL ACCOUNTING 
 
 Accounting is the process which reduces to figures the record of a city's 
 activities. In practice, it provides an exact basis for administrative and 
 public judgment concerning the wisdom, propriety and legality of official 
 acts. Without it no intelligent judgment can be formed of a city's business 
 or of the efficiency or inefficiency of its officers. In the absence of the 
 necessary facts which are the product of right accounting, able officials are 
 handicapped and incompetency is not detected. 
 
 In every private business or corporation, certain accounts are deemed 
 indispensable and the science of modern accounting has developed a set of 
 principles which are applied in keeping the books of every well-managed 
 private enterprise. Broadly speaking, the practical purposes of modern 
 accounting are as follows : 
 
 (a) To control and safeguard the company's funds; 
 
 (b) To record and collect the facts necessary for administrative 
 
 guidance ; 
 
 (c) To fix the responsibility for every official act; and 
 
 (d) To measure the efficiency of the officers in charge of each 
 
 department, bureau and office. 
 
 In developing the Klink-Bean System, the view was taken that a city is 
 a great business corporation, owning vast property interests, borrowing 
 large sums on its credit and engaging in business on a grand scale for the 
 benefit of the community at large. A city differs from a private corpora- 
 tion in details having little effect upon the accounting principles applicable 
 to both. Officers of the one are as much in need of information about the 
 business as are officers of the other; the same kind of responsibility for 
 money, properties and stores must be enforced ; the same kind of reports 
 must be made to the stockholders (i. e., the Public). It follows that sound 
 accounting principles are applicable to both. 
 
 Conditions Before Installation: 
 
 It cannot be said that the municipal accounts) in Oakland were any 
 worse than in the average American city. Nor were they any better. 
 About the only accounts kept were those required for cash expended and 
 to be expended; that is, they met the legal and technical requirements of 
 appropriations and nothing more. 
 
The old system was a development of many years of confused, hap- 
 hazard and unscientific procedure. When the City's business was compara- 
 tively small and its activities few, there was relatively little need for an 
 extended system of accounting and business administration. It was consid- 
 ered sufficient to keep simply a record of the flow of cash through the 
 treasury — receipts and disbursements only. No consideration was given to 
 the value and importance of installing a modern system looking to the 
 definite determination of policies, methods of control and fixing of responsi- 
 bility; to information showing the results of past policies; to the production 
 of statistical data whereby the benefits of what the City does might be 
 measured; or to any of the other advantages of business accounting. 
 
 Until last July, the municipal accounts never revealed the cost of any 
 activity for any given period, nor did they show the financial condition of 
 the City at the end of any fiscal year, except the single item of cash in the 
 treasury. No records or exhibits were made of expenses incurred but not 
 paid, or of revenues accrued but not received. No inventories of fixed and 
 floating assets were kept, nor was there any way to disclose variations or 
 changes in ownership, or amounts of property, stores and equipment 
 belonging to the City. No distinction was made between the expense of 
 administration and operation, and the sums laid out for betterments and 
 additions to fixed property. 
 
 In other words, the accounts of the City were on a strictly cash basis. 
 Officers were charged with responsibility for cash only and the only reports 
 were of cash transactions. The greater importance of the vast municipal 
 estate, of which the cash formed only a fraction, was overlooked entirely. 
 
 Under these conditions, an intelligent statement of the affairs of the 
 City could not be made. The City's reports, published annually at consid- 
 erable expense, were useless in so far as they undertook to inform the public 
 of what the City owned, what it owed, how many measurable units of any 
 service it was able to supply for a given sum, or any other facts by means 
 of which the taxpayer might discover how his money was being spent. 
 The value of statistics depends entirely on the form in which they are pre- 
 sented, and a financial report that requires the services of an expert 
 accountant to interpret is of little or no value. 
 
 It was but natural, in view of the conditions of the City's accounts and 
 reports, that the plan of spending each year's income should be crude. A 
 budget showing how many units of a given service were to be supplied, 
 how much the City was to lay out for new properties, how much of the 
 annual expense would go for administration, operation and maintenance, 
 was unknown. Department heads were accustomed to send in their esti- 
 mates in a lump sum, which they regularly "padded" in expectation of a 
 horizontal cut which was usually forthcoming. As a work-program based 
 on actual needs, the annual budget meant nothing. Under such conditions 
 waste was inevitable and efficiency impossible. 
 
Finally, the keeping of the accounts was wholly unorganized, with the 
 Auditor having only little or no control over the books of the several 
 departments, which were kept by clerks responsible to the department heads 
 and independent of the Auditor. This resulted in needless duplication of 
 work and untold confusion. 
 
 Development of the New System: 
 
 The first step in the development of a new system was to make a 
 detailed study of the organization of the City Government and prepare a 
 set of Organization Charts showing the distribution of powers and duties. 
 Where the Charter permitted, changes were made looking to a greater sim- 
 plification and co-ordination, with the result that many defects were cor- 
 rected at once. 
 
 Having reduced the organization to a simpler form, the next step was 
 to analyze the City's expenditures over a term of years and prepare a 
 uniform Classification of Expenditures applicable to all departments. On 
 the basis of this work, the City was able to revise its purchasing methods 
 in such a way as to effect large savings. 
 
 A further step was the preparation of a detailed inventory of all city 
 property, real and personal, as a basis for property accounting, which never 
 before existed in the City of Oakland. No one doubts the advantage of a 
 strict accounting for cash, but most cities overlook the fact that it is 
 equally important to enforce a strict stewardship over the supplies, 
 materials, tools and fixed properties that are no less valuable than the cash 
 which they represent. City property is sometimes bought and permitted to 
 lie idle. Often it is forgotten. An inventory summarized in a balance sheet 
 is a constant reminder that property is owned that should be taken care of 
 and used or sold. 
 
 With all of the necessary information at hand, a uniform accounting 
 system based on scientific principles was devised. It was the aim to make 
 it practical to the last degree, readily understandable by both officers and 
 public, and to serve the practical ends of efficiency in government. 
 Accounts which automatically detect waste, error, fraud, incompetence and 
 extravagance will insure efficient government through the sheer force of 
 publicity. The experience of those cities that have reformed their account- 
 ing procedure in the last dozen years was carefully studied and the results, 
 taken with the accounting principles known to private business, were 
 applied to the problem presented by the existing conditions. The entire 
 procedure of planning, spending, accounting, auditing and reporting has 
 been made over, and the new System is now in full operation throughout 
 the city. 
 
 y 
 
 j( C N J V K l{ .S I T V 
 
The Klink-Bean System of Accounts: 
 
 The following discussion of the new System will go not so much to the 
 technical nature of the accounting principles involved, but rather to the 
 meaning of the accounts from the standpoint of the city officials and the 
 public : 
 
 The essential characteristics of the revised accounting system are: 
 
 1. The complete co-ordination of all accounting and auditing under 
 
 one department. 
 
 2. Accounting with revenue and expense, instead of cash receipts 
 
 and disbursements. 
 
 3. Balance sheets showing the City's assets and liabilities. 
 
 4. A standard classification of expenditures. 
 
 5. A complete record of unit and job costs in all operating depart- 
 
 ments. 
 
 6. A segregated budget expressed in terms of service and cost. 
 
 7. A system of uniform monthly reports giving complete, accurate 
 
 and understandable information to officers and public. 
 
 8. Provision for the assimilation into the system of the accounts of 
 
 new functions or enterprises which the City may undertake 
 hereafter. 
 
 1. Co-ordination of Accounting. 
 
 Although the Auditor is designated by the Charter as the accounting 
 officer of the City, each department heretofore kept its records and accounts 
 independently of the Auditor and of other departments. Naturally there 
 was no uniformity in the system and anything approaching a consolidated 
 statement was impossible. Inasmuch as the departmental bookkeepers were 
 responsible to their department heads, the Auditor was powerless to enforce 
 rules looking to improved procedure. 
 
 In the present system, the Auditor is given complete control over the 
 functions of accounting and auditing throughout the City. A uniform 
 procedure is prescribed for all departments and the books and records are 
 kept by Division Accountants who are directly responsible to the Auditor 
 in a relationship which amounts virtually to that of deputies and principal. 
 At present there are nine Division Accountants, but eventually this number 
 will be reduced to five, or one each in the Mayor's office and the depart- 
 ments of Public Health and Safety, Public Works, Revenue and Finance, 
 and Streets. Already all confusion and duplication of effort have been 
 eliminated and the new accounts are being maintained at less expense than 
 were the old. 
 
 8 
 
2. Accounting with Revenue and Expense. 
 
 A city's financial statement, to be a truthful reflection of what has 
 taken place in its finances, must be based upon accretions to and depletions 
 of wealth, that is, upon revenue and expense as distinguished from cash 
 receipts and disbursements. Recognition of this fundamental distinction is 
 of primary importance. 
 
 In the present system, the operating accounts of the City conform to 
 the following definitions: 
 
 REVENUE is the income accruing to a government from taxes, 
 licenses, and miscellaneous other sources in a stated period, irrespective of 
 the period in which the cash is collected. 
 
 EXPENSE is the cost of operation, maintenance and other charges 
 payable out of current revenues incurred in a stated period, irrespective of 
 the date of payment. 
 
 In accounting with revenue, every dollar of the City's income from 
 licenses, permits, etc., is controlled through the use of financial stationery 
 which is issued by the Auditor to the collecting officers, who are charged 
 for the blank forms in a special stationery account. Instead of twenty or 
 more printed forms for licenses, as heretofore, the new system provides for 
 a uniform blank bearing a graduated coupon on the left which is cut in 
 such a way as to indicate the amount paid by the licensee. The counterfoil 
 from which the issued license is cut is a positive check upon both error and 
 undetected defalcation. At the end of each day, the counterfoils are trans- 
 mitted to the Auditor by the collecting officers, who are credited on their 
 stationery account and charged for the total moneys which the records 
 show they should have received. 
 
 In accounting with expense, the Auditor registers every purchase order 
 and every contract at the time such order or contract originates and sets 
 up on his appropriation ledger a reserve to indicate the liability against the 
 City. Heretofore there was no formal record c^f the City's outstanding 
 liabilities and spending officers trusted to good fortune and their own 
 memories to avoid overdrafts upon their appropriations. This was the 
 effect of keeping books on a strictly cash basis. Its defect lay in the fact 
 that it left the City without protection. 
 
 By making a record of every liability at the time it is incurred and 
 reserving funds to pay it upon maturity, the Auditor is able to show the 
 exact condition of every appropriation account — not only the unexpended 
 balance, but, what is more important, the unencumbered balance remaining. 
 The Division Accountants keep such records in detail in their own depart- 
 ments, sending monthly reports to the Auditor, who compiles therefrom a 
 general summary. Before any order or contract for work or supplies can 
 be executed, it must bear the certification of the Division Accountant that 
 
an unencumbered balance remains in the appropriation sufficient to cover 
 the charges. 
 
 The appropriation ledger is supported by fund ledgers, which show for 
 each fund (a) the unapplied surplus in net cash, (b) the available surplus 
 other than cash, i. e., accrued but uncollected revenues, and (c) the require- 
 ments, or appropriations authorized to be spent. 
 
 The information which these accounts provide is invaluable in securing 
 responsible control of the City's finances and in affording a basis for the 
 scientific management of municipal affairs. A further object of accounting 
 with expense instead of cash expenditures is to facilitate a comparison of 
 costs, which can be made only when the costs are reduced to a unit basis. 
 Obviously, to ascertain unit costs, all of the expenses applicable to the 
 period and not merely those paid in cash should be divided by the total 
 number of units of results. Under a system of recording expenses only as 
 cash is paid out, there cannot be a proper allocation of charges according 
 to the periods affected or cost of results achieved, and therefore no basis 
 for computing unit costs. Under the present system, unit costs can be com- 
 puted promptly and accurately in every department. (See statement of 
 Revenue and Expenses, page 15.) 
 
 3. Balance Sheet. 
 
 In every private business it is considered essential to summarize the 
 results of current transactions periodically in a balance sheet, or statement 
 of assets and liabilities. When the nature of the business requires a large 
 capital investment in fixed properties and equipment, the balance sheet 
 becomes doubly important as a means of enforcing responsible custodian- 
 ship on the part of the officers in charge. 
 
 The same considerations operate to require the balance sheet as an 
 indispensable part of municipal accounting and in the present system it is 
 the keystone. Here the results of all transactions are focussed month by 
 month in a statement which is a theoretical but accurate cross-section view 
 of the financial condition of the City — what it owns in money, property and 
 unliquidated credits; what it owes; its surplus or deficit. At the close of 
 the fiscal year, the balance sheet tells how the plan of that year has worked 
 out in dollars and cents. It is the only accurate measure of the success or 
 failure of municipal policies. 
 
 The balance sheet is compiled monthly from the several operating, 
 capital and trust fund accounts. Each item is supported by supplementary 
 schedules in full detail, which are changed day by day as current trans- 
 actions are recorded. Every figure is capable of immediate verification in 
 the supplementary accounts, which also contain a complete historical 
 record of every transaction, the results of which are reflected in the balance 
 sheet. (See Consolidated Balance Sheet, page 14.) 
 
 10 
 
4. Classification of Expenses. 
 
 Good statistics are experience expressed in figures. By means of right 
 accounting, the record of the past is made a guide for the future, through 
 the collection and summarization of the facts which it is necessary for the 
 administrative and executive officers to know. 
 
 The accounting system introduces four general classifications of 
 expenses : 
 
 1. By organization units, such as General Government, Protection 
 
 of Persons and Property, Conservation of Health, etc., fol- 
 lowing the uniform classification adopted by the Census 
 Bureau. 
 
 2. By functional activity, such as police service, the several kinds 
 
 of sanitary inspection, maintenance of fire houses, etc., in 
 such a way as to afford a basis for computing unit costs. 
 
 3. By character of expenditure, such as administration, operation, 
 
 maintenance and capital outlay. 
 
 4. By objects purchased, such as personal service, fuel, stationery, 
 
 gasoline, etc., in such a way as to afford a basis for stand- 
 ardization of services and supplies in all departments. 
 
 Monthly reports based on these classifications are prepared by the 
 Division Accountants and copies are supplied to the several administrative 
 and executive officers and to the Auditor, who compiles a summary report 
 covering all departments. Such reports make possible the application of 
 fact standards instead of opinion standards to public business; they become 
 the guarantee of efficiency. 
 
 5. Unit and Job Costs. 
 
 By methods which are common to every well managed private enter- 
 prise, the new system of municipal accounts provides for the compilation 
 of unit costs in connection with every operation or function that lends 
 itself to this branch of accounting. The work of each operating department 
 is divided into its elements and the units of service in given periods are 
 added together and offset by the total cost, whether in labor or supplies, 
 whether paid for in cash or interdepartmental transfers. 
 
 The result is that from month to month, from year to year, comparable 
 statistics will be produced to show what the City is getting for its money 
 and to measure the efficiency of the several officers and employes. Such 
 records are an incentive to the introduction of improved methods. They 
 will not only detect the incompetent, but they will protect the competent 
 
 II 
 
public servant. They also make possible the comparison of results obtained 
 in Oakland with those obtained in other cities where cost accounting is 
 practiced. 
 
 Of almost equal importance is the keeping of job costs. The system 
 provides that every piece of work undertaken by or for the City must be 
 ordered on a blank signed by a responsible officer and that everything used 
 in performing that particular job shall be charged to it. Eventually there 
 will be established a set of standards as a guide for, and a check upon, 
 those who have such work in charge. 
 
 6. %. Segregated Budget. 
 
 Scientific budget-making is one of the most important functions of the 
 City, inasmuch as it is the basis of the tax levy. Heretofore, owing to the 
 general absence of reports and statistics showing the results of past policies, 
 it was impossible to estimate the financial needs of the people with any 
 degree of accuracy. Consequently the "budget" consisted of a long list of 
 detached, unrelated requests from the several departments which the City 
 Commission had to accept or reject largely by guess-work. 
 
 A budget should be a financial program for meeting the necessary 
 requirements of the public service, with those requirements set down in 
 such a way that the public may know what kinds of work are planned and 
 how much of each. It must specify or appropriate exact amounts based on 
 a knowledge of exact needs, and to this end it is necessary to relate the 
 proposed expenditures, whether for salaries, wages, supplies or materials, 
 to the amount of work thajt is to be done. This is called the principle of 
 functional segregation. 
 
 The records and statistics made available by the system supply all of 
 the necessary information on which to build a scientific budget. Instead of 
 asking for "lump sum" appropriations without evidence to support them, 
 heads of departments submit their estimates on uniform blanks showing in 
 detail the kind and quantity of service which is to be rendered and the 
 exact cost thereof, based on the experience of the preceding year. The 
 unsupported judgment of officials gives way to the record of facts. 
 
 7. Uniform System of Reports. 
 
 A well designed system of reports is to the operating organization of a 
 city what a contour map is to a military leader, or a sailing chart to the 
 captain of an ocean liner. To be of most value, reports must come promptly 
 and currently to the executive and administrative officers and must set 
 forth every essential detail of the business for which they are responsible. 
 
 The system classifies all transactions by subjects and summarizes them 
 by periods in a system of reports which automatically reveals any unusual 
 
 12 
 
or abnormal conditions that may exist. These reports are returned to the 
 responsible officers daily, weekly, monthly and yearly, according to the 
 nature of the subjects to be considered. 
 
 From the standpoint of the public, the reports are one of the most 
 important features of the system. They show the public how its money is 
 being spent and what results are obtained, and they may be expected to 
 stimulate in Oakland, as in other cities where modern accounting has been 
 introduced, a greater public interest in civic affairs. 
 
 8. Possible Expansion of the System. 
 
 Every growing city is constantly adding new functions and under- 
 taking new enterprises. Accordingly, an accounting system must permit of 
 expansion to include the accounts which it may be necessary to maintain 
 later, without sacrifice of uniformity. The system takes the future into 
 account and it is possible to add to it without delay or inconvenience. 
 
 Accounting as an Aid to Efficiency: 
 
 Scientific accounting of itself will not make administration efficient, but 
 by making available all of the necessary information it establishes the first 
 requisite of efficiency. Ordinarily public opinion can be counted on to see 
 that the information so provided is effectively used, in those cases where 
 officials do not themselves recognize and accept the opportunities presented. 
 
 By the installation of the Klink-Bean System, Oakland has become one 
 of the pioneers among American cities in the matter of correct account- 
 ing. Before many years, it may be expected that other cities will have 
 followed Oakland's example in providing a modern system of municipal 
 accounts, not only as a guide for administrative officers but as an aid to the 
 public in the enforcement of its beneficial rights. 
 
 ^3 
 
TABLE I. 
 
 CONSOLIDATED BALANCE SHEET, SEPTEMBER 30, 1915. 
 
 General Capital 
 
 ASSETS Total Account Account 
 
 Cash: 
 
 Cash in Hands of Treasurer and in Banks $529,940.09 $220,077.26 $242,592.99 
 
 Accounts Receivable — Amounts Due the City: 
 
 Tax Sales 67,567.10 67,^67.10 
 
 Uncollected Taxes 35.727-57 35,727-57 
 
 Departmental Accruals 82,369.13 82,369.13 
 
 Deferred Accounts: 
 
 Stores 35,149-65 35,149-65 
 
 Work in Process 49,120.34 49,120.34 
 
 Prepaid Expenses and Advances 12,265.51 12,265.51 
 
 Miscellaneous Tax Accounts 26,876.96 26,876.96 
 
 Lands (Uncompleted Purchases from Appropriations)... 177,820.00 177,820.00 
 Buildings, Structures and Improvements (from Appropria- 
 tions) 22,680.73 22,680.73 
 
 Equipment (from Appropriations) 14,441.74 14,441.74 
 
 Interdepartment Service Charges 105.20 105.20 
 
 Permanent Properties and Equipment: 
 
 Lands 10,514,399-57 10,514,399.57 
 
 Buildings, Structures and Improvements 5,732,478.33 5,732,478.33 
 
 Equipment 923,930.35 923,930.35 
 
 Construction in Process 2,935,253.39 2,935,253.39 
 
 Total Assets $21,160,125.66 $744,201.19 $20,348,654.63 
 
 LIABILTIES 
 
 Immediate Demands for Cash: 
 
 Demands Payable $81,552.87 $76,295.74 $5,257-13 
 
 Pay Rolls Payable • 127,873.62 126,939.00 934-62 
 
 Warrants Payable 132,695.96 1 14,937.12 14,664.58 
 
 Depositors and Trusts 64,175.58 
 
 Other Liabilities: 
 
 Advanced Unsecured Personal Property Taxes, 1915-1916 83,300.19 83,300.19 
 
 Advanced Unapplied Receipts, 1915-1916 5,174-59 5,i74-59 
 
 Advanced Unapplied Receipts, 1916-1917 595-89 595-89 
 
 Bonded Debt   • 8,589,285.00 8,589,285.00 
 
 Reserve for Deferred Accounts: 
 
 Reserve for Stores 35,149-65 35,149-65 
 
 Reserve for Work in Process • 49,120.34 49,120.34 
 
 Reserve for Prepaid Expenses and Advances 12,265.51 12,265.51 
 
 Reserve for Miscellaneous Tax Accounts 26,876.96 26,876.96 
 
 Reserve for Lands (Uncompleted Purchases) 177,820.00 177,820.00 
 
 Reserve for Buildings, Structures and Improvements 22,680.73 22,680.73 
 
 Reserve for Interdepartment Service Charges 105.20 105.20 
 
 Reserve for Equipment 14,441.74 14,441.74 
 
 Total Liabilities and Reserves $9,423,113.83 $745,702.66 $8,610,141.33 
 
 Surplus — Net Investment of the City: 
 
 Cash in Excess of Immediate Demands for Cash $ 123,642.06 $98,094.60 $ 221,736.66 
 
 Accounts Receivable in Excess of Other Liabilities 96,593.13 96,593.13 
 
 Permanent Properties and Equipment in Excess of Bonded 
 
 Debt 11,516,776.64 11,516,776.64 
 
 Total Surplus $11,737,011.83 $1,501.47 $ii,738,5i3-30 
 
 Total $21,160,125.66 $744,201.19 $20,348,654.63 
 
 CONSOLIDATED FUNDING STATEMENT 
 SEPTEMBER 30, 1915 
 REQUIREMENTS AND SURPLUS 
 Requirements : 
 
 Estimated Requirements $2,707,801.12 $2,707,801.12 
 
 Surplus: 
 
 Available Surplus— Other than Cash 96,593-13 96,S93-i3 
 
 Unapplied Surplus— Net Cash 123,641.86 102,594^0 $226,236.46 
 
 Total $2,928,036.11 $2,701,799.65 $226,236.46 
 
 Authorizations : 
 
 Authorizations — Unencumbered Balance $2,295,514.92 $2,204,943.39 $90,571-53 
 
 Reserve for Contracts — Unliquidated Contracts 618,914.60 485,335-47 I33, 579-13 
 
 Reserve for Open Market Orders — Unliquidated Orders 7,674.1 1 5,558-31 2,085.80 
 
 Reserve for Miscellaneous — Unliquidated Claims 5,932.48 5,932.48 
 
 Total $2,928,036.11 $2,701,799.65 $226,236.46 
 
 14 
 
 Special 
 
 Deposit 
 
 and Trust 
 
 Account 
 
 $67,269.84 
 
 $67,269.84 
 
 $ 3,094.26 
 64,175-58 
 
 $67,269.84 
 
 $67,269.84 
 
TABLE II. 
 REVENUES AND EXPENSES FOR PERIOD ENDED SEPTEMBER 30, 1915. 
 
 REVENUES 
 General Revenue Accruals from Taxes. 
 
 Departmental Revenues 
 
 Other Revenues 
 
 Total Revenues 
 
 EXPENSES 
 General Expenses: 
 
 General Government 
 
 Protection to Person and Property 
 
 Conservation of Health 
 
 Sanitation or Promotion of Cleanliness. 
 
 Highways 
 
 Charities and Corrections 
 
 Education 
 
 Recreation 
 
 Public Works 
 
 Miscellaneous General 
 
 Total General Expenses 
 
 Other Expenses: 
 
 Municipal Industries 
 
 Interest on Bonded Debt 
 
 Bond Redemption 
 
 Miscellaneous Other Expenses 
 
 Total Other Expenses 
 
 Total Expenses 
 
 Excess of Expenses Over Revenues. 
 
 GENERAL SURPLUS 
 
 1 Current 
 
 Month \ 
 
 /— 3 Months 
 
 to Date--. 
 
 Detail 
 
 Total 
 
 Detail 
 
 Total 
 
 $17,326.12 
 
 
 $120,152.77 
 
 
 19.495.74 
 
 
 50.984-35 
 
 
 S.007.47 
 
 $41,829.33 
 
 IS.738.35 
 
 
 
 
 $186,875-47 
 
 $15,493-91 
 
 
 $ 47.363-60 
 
 
 61,899.21 
 
 
 187.245-69 
 
 
 3.770.60 
 
 
 10,862.85 
 
 
 15,217.18 
 
 
 45.367.57 
 
 
 46,307.96 
 
 
 112,837-18 
 
 
 1,201.42 
 
 
 2,584.29 
 
 
 7,260.05 
 
 
 23,084.77 
 
 
 17,097.46 
 
 
 57,993-20 
 
 
 3.677.77 
 
 
 11,364.08 
 
 
 1.35973 
 
 173.285.29 
 
 639.92 
 
 
 
 
 499,343-15 
 
 $ 5.763.58 
 
 
 $ 16,877-82 
 
 
 5.990.75 
 
 
 175,696.93 
 
 
 4,500.00 
 
 
 135,500.00 
 
 
 4,638.10 
 
 20,892.43 
 
 5.925.10 
 
 
 
 
 333,999-85 
 
 
 $194,177-72 
 
 $833,343-00 
 
 
 $152,348-39 
 
 $646,467.53 
 
 Surplus— July i, 1915 $759,439-77 
 
 Excess of Expenses Over Revenues — as Above 646,467.53 
 
 $112,972.24 
 Less Net Increase in Deferred Accounts and Surplus Adjustment 114,473.71 
 
 General Surplus — September 30, 1915 • $1,501.47 
 
 «5 
 
ACCOUNTING ORGANIZATION, 
 
 CHART I. 
 
 SHOWING COMPLETE CO-ORDINATION. 
 
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 17 
 
CHART II. 
 BUDGET SCHEDULE, AS BASIS OF CITY'S SPENDING PLAN. 
 
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 19 
 
CHART III. 
 CONSOLIDATED BALANCE SHEET OF ASSETS AND LIABILITIES. 
 
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 21 
 
CHART IV. 
 MUNICIPAL REVENUES, SEGREGATED AS TO SOURCES. 
 
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 23 
 
CHART V. : : ... 
 
 SEGREGATION OF EXPENSES OF DEPARTMENT OF PUBLIC •HEALTH AND SAFETY. 
 
 
 
 C/T-V 
 
 
 as 
 
^^■F 14 DAY USE 
 
 RETURN TO DESK FROM WHICH BORROWED 
 
 LOAN DEPT. 
 
 This book is due on the last date stamped below, or 
 
 on the date to which renewed. 
 
 Renewed books are subject to immediate recall. 
 
 ^i'Jun'fiii)^ 
 
 
 
 
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 JlIN 2 7 IQfil 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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UNIVERSITY OF CALIFORNIA LIBRARY