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•4- N m PAGE TEN THE CLINTON CHRONICLE, CLINTON, S. C. THURSDAY, SEPTEMBER 25, 1924 REPORT ON AUDIT CITY OF CUNTON CLINTON, S. C. August 1924 DATE: SEPTEMBER 9, 1924 TO THE HONORABLE MAYOR AND COUNCIL OF CLINTON, SOUTH CAROLINA. Gentlemen: Pursuant to engagement, we have audited the disbursements and ex amined the books, accounts and records of the “Town of Clinton” for the period beginning September 1, 1922, and ended August 31, 1924. We submit herewith, our report, comprising four Exhibits and eighteen Schedule^ Commercial Bank, Clinton, S. C. First National Bank, Clinton, S. C. Total NOTES RECEIVABLE—Schedule “1” ACCOUNTS RECEIV^LE: Pav. Ass’m’ts. Rec’ble—Schedule “2” Mat., Meters, Taps, Etc.—Schedule “3’ Advance to Employees—Schedule “4” Dishonored Checks—“5” Preliminary Water Taps—Schedule “6 Unpaid W.&L. Bills—City Cus.—Sch. Unpaid W.&L. Bills—Mill Cus.—Sch. ‘ L. & W. Bills—Current, due Sept. 1 Total REAL & PERSONAL PROPERTY TA3 Unpaid for year 1920—Sch. “9” Unpaid for year 1921—Sch. “10” Unpaid for year 1922—Sch. “11” Unpaid for year 1923—Sch. “12” COMMENTS CASH $61,263.32: All bank balances were reconciled with statements from the banks as at August 31, 1924. " , NOTES RECEIVABLE $401.94: Are listed on Sshedule “1” and were presented for our inspection. Most of these notes are long past due. ACCOUNTS RECEIVABLE $19,765.90: As listed on Schedules “2” and “S’” inclusive, are as per records and were not verified by correspondence or otherwise. The Paving Assessments, Schedule “2” and Accounts Due for Mater ial, Meter, Taps, etc., Schedule “3” are, in most instances, long past due and should have immediate attentioft so that you may realize on them during the early Fall when it is easier for many people to liqui date such indebtedness. Interest has not been computed and added to the - recent sidewalk paving accounts as Coulicil, apparently, has not decided the date at which intetest should begin. The unpaid Light and Water bills listed on Schedule “7” and “8” are only those, which, in the opinion of your Clerk and Treasurer, are collectible. Apparently more care should be exercised in handling the light and water customers accounts so that when bills are not paid, the service will be discontinued immediately. REAL AND PERSONAL PROPERTY TAX—Unpaid $1,303.60: Schedules “9” to “12” inclusive, reflect the individual amounts due for each of the past four years. The tax rolls should be carefully inspected by your Finance Committee and the items on above mention ed Schedules either collected or written off and charged to your sur plus account. CITY LICENSE—Unpaid $217.75: The items comprising the above, are listed on Schedule “13” and should have your immediate attention as part of the amount is due for the year 1923. The foregoing Notes Receivable, Accounts Receivable, etc., Unpaid Taxes and Unpaid License amount to $21,689.19. Many of the items are old and unless given vigorous attention will never be paid. INVENTORIES $1,483.39: Were taken and priced by your superintendent. We verified exten sions and footings only. SINKING FUND INVESTMENT $6,250.00: Consists of an unsecured note of the Fuller Grocery Company dated November 24, 1923, due November 24, 1924 bearing 5% interest. The Sinking Fund Investment formerly consisting of United States Bonds in the amount of $1,250.00 was closed out June 7,1923 and re opened November 24, 1923 with the above $6,250.00 Attention is directed to Schedule “17” which shows the extent to which the city has failed to provide for its Sinking Fund, as stipulated at time of each bond issue. FIXED ASSETS $208,838.52: The several items are reflected on Exhibit “A”, and consist of values established August 31, 1922 which have been increased by additions during the period under review, amounting to $51,100.40. The values, in most instances, are approximately the original cost plus additions. No provision has ever been made for depreciation of the Light and Water Plant. PERMANENT IMPROVEMENTS $255,119.63: Street and Sidewalk paving is shown at actual cost. Curbing and Gutters consist of values established August 31, 1922 plus additions during the period under review. NOTES PAYABLE $36,521.74: The several notes are described on Schedule “14.” Notes due the banks and Guy L. Copeland were verified by interview. ACCOUNTS PAYABLE $1,355.17: Are as per records and were supported by invoices on file. The City owes at least three accounts which do not appear on Schedule “15” as follows: Southern Power Company 500.00: Minute book, page 282, shows an agreement entered into where by the City is to pay the Southern Power Company $500.00 when the, company completes the transmission line from Lydia Mill to the City. L. J. & F. L. Wagner approximately $8,100.00: The above contractors have been paid $32,500.00 on the Water . Works Extension contract which was given them at approximate ly $40,600.00. George C. Odiorne about $4,900.00: _ Mr. Odiorne has been instructed to make certain Permanent ^ . • * Improvements and we were informed that the City now owes him approximately the above amount for work under construction. ACCRUED INTEREST $4,643.94: No part of the item of $3,666.63, Bond Interest, is past due as all bond interest has been paid when due. BONDS PAYABLE $300,000.00: Schedule “16” reflects complete information regarding the several Bond Issues. Schedule “17” was prepared to state the Sinking Fundj requirements and shows the ^amount for which' provision should be made annually. EXHIBITS “B” & “C”: Have been prepared in comparative form as information and for L} cense s guidance in estimating income and expenses for the current year RECOMMENDATIONS: Our report dated August 31, 1922, directed attention to the follow- r 4 ing matters which have apparently received, little or no attention: Service Furnished City: The Water & Light Plant receive no credit for Street Lighting,' Fire Hydrants, Flush Tanks, etc., which service amounts to a value of about $11,000.00 annually. If Council will agree on the' Water Meter Sales values to be placed on the several items of service furnished, the Water Revenue necessary entries can be made and your books will more nearly reflect a true Statement of Operation. The last two pages of our former report Were devoted to re marks regarding Plats Showing Location of Water Mains, etc., Meter Books, etc., all of which are again suggested as worthy of your consideration. Respectfully submitted, JOHN M. PALM & COMPANY, By John M. Palm, ’ Certified Public Accountant. Total CITY LICENSES—Unpaid for years 1923 and 1924—Schedule “13” 1 INVENTORIES: Electric Meters Electric Supplies Water Meters Water Supplies 20,778.65 10.49 Fuel & Supplies 17442.62 144084° 16,59947 ' 13,891.24 15,460.44 20,150.98 358.44 General Expense 1457.01 412.59 442.40 Int. & Discount 1460.07 2,; < 3 1,081.54 2,16740 1,769.76 , $ 61468.32 $ 44847 $ 60,814.95 L. & W. Sal. & Wages 9,100.46 8402.65 7,851.47 8,477.85 8,408.11 $ 401.94 $ 390.94 $ 11.00 Live Stock Expense 2,093.75 1,675.96 1,254.45 1,113.03 1434.29 Mis. Supplies ' 145 84.59 42.92 Office Expense 82.90 51.14 67.02 $ 15,296.94 $ 23,711.97 Plant Main. & Sup. 5475.35 2,653.11 9,47844 4466.48 5,593.45 * ” 980.76 39343 Printing, Sta. & Adv. 316.52 519.84 510.85 492.27 459.87 180.00 Police Dept. Expense 741.70 82547 78341 85.79 Police Salaries 449343 4,53343 5,19146 5,937.70 5,035.55 >” 243.95 284.01 <♦ Police Uniforms 49.22 203.59 200.00 197.50 162.58 “7” 325.45 30140 Rent 552.50 670.00 512.50 605.50 585.12 ’8” 13443 667.06 Sewer Maintenance • 386.71 44.35 215.53 2,518.68 2,246.93 Street Maintenance 12,661.80 1141843 8,102.54 10,12241 10,676.52 Street Lamp Bulbs 872.96 120.59 246.77 $ 19,765.90 $ 27,604.60 $—7,838.70 Telephone & Telegraph 139.05 * 164.86 * 297.03 80044 225.37 [ES: Water Material & Sup. 51.40 281.05 16643 $ 325.40 $ 327.70 Water Meters—Purcbaaed 330.79 642.08 486.44 396.80 468.90 Writing Off: / 187.80 Road' Machinery 1,000.00 1,089.39 150.00 393.60 Live Stock 200.00 — 200.00 $ 1,303.60 $ 796.60 $ 507.00 TOTAL EXPENSES $68,466.72 $61,860.92 $68,645.37 $64,113.85 $66,753.25 217.75 217.75 $ 268.81 $ 30.00 985.91 314.19 100.25. 143.00 128.42 56.15 Total SINKING FUND INVESTMENT: Unsecured ndte of Fuller Gro. Co., 5% Interest FIXED ASSETS: Land: W. E. Owens Property Fannie Bailey Park—15 acres G. A. Copeland Park—1 acre Rosehill Cemetery l Total Land Building on Musgrove Street Sewer System Light & Water Plant Payments on Waterworks Improvem Extension, under construction: L. J. & F. L. Wagner Rights of Way Miscellaneous Equipment: • Office Furniture and Fixtures Fire Department Light & Water Department: Service Truck Tools Police Department Street Department: Live Stock ' Road Machinery Tools TOTAL PERMANENT IMPROVEMENTS: Curbing and Gutters Sidewalk Paving Street Paving Total TOTALS $ 1,483.39 $ 543.34 $‘ 940.05 $L 6,250.00 $ 1,250.00 $ 5,000.00 OPERATING INCOME IN EXCESS of Above Expenses $ 1,750.58 $10,082.31 Add: Paving Income 39,213.84 11,755.48 $— 3.80 $12,477.41 $ 6,076.62 837.60 6,503.35 TOTAL $109,431.14 $83,698.71 $69,479.17 $83,094.61 EXHIBIT “C” “■ * COMPARATIVE STATEMENT INCOME AND EXPENSES LIGHT AND WATER-DEPARTMENT SEPTEMBER 1, 1921-TO AUGUST 31, 1924 INCOME Years Ending Augqpt 31, Approx. 1 $ 4,000.00 $- -4,000.00 800.00 800.00 100.00 100.00 ~ 875.75 < $ 5,775.75 $ 4400.00 $ 875.76 12,500.00 12,500.00 31444.54 31,651.74 19240 113,491.64 t and 104,553.60 8438.04 32,500.00 32,500.00 1470.00 1470.00 3,477.72 8,477.72 1414.06 0 615.48 598.58 2,489.80 1,91440 575.00. 451.50 451.50 45344 199.00 26444 574.55 25.00 549.55 1,362.50 800.00 562.50 1480.37 527.50 85247 52.25 61.00 1.25 Elec. Material Sales Elec. Meter Sales Electric Revenue Fuel Sales Tapping Fees Water Material Sales Water Meter Sales Water Revenue . 1921 1922 1923 1924 Average $ 619.77 $ 313.18 325.54 $ 2.53 $ 315.26 171.40 36540 268.60 24,407.88 25480.03 22,666.69 • 26495.48 24,712.52 * 83.08 197.98 140.53 110.00 203.50 15745 168.57 49747 111.10 142.39 229.98 384.00 685.65 534.83 7,999.03 8,842.11 8,184.29 9478.09 8,72548 GROSS INCOME $33,195.25 $35,033.19 $32,037.10 $37,871.42 $35,084.85 Elec. Material Purchased Elec. Meters Purchased Fire Insurance Fuel & Supplies L. & W. Sal. & Wages Plant Main. & Sup. Street Lamp Bulbs Water Material & Sup. Water Meters Purchased 1921 EXPENSES Yean Ending August 31, 1922 1923 388.04 $ 1924 3.90 Approx. Average $ 195.77 144.71 26244 203.48 18342 • 63.42 53.42 72.67 17,142.62 14408.62 16,59947 13,891.24 15,460.44 9,100.46 8,202.65 7,851.47 8;477.85 8,408.11 5,875.35 2,653.11 9,478.84 4,366.48 5,593.45 372.96 120.59 246.77 51.40 281.05 166.23 * 330.79 642.08 486.44 $208,838.52 $157,738.12 $ 51,100.40 $ 614245.89 $ 50,000.00 37,323.51 32,221.08 156,550.23 156,550.23 11,245.89 5,102.43 $255,119.63 $238,771.31 $ 16,348.32 $554,644.05 $427,643.28 $127,100.77 LIABILITIES August 31, 1924 $ 36,521.74 1922 28,292.76 Increase —Decrease $ 8,228.98 NOTES PAYABLE—Schedule “14” ACCOUNTS PAYABLE—Sch. “15” ACCRUED INTEREST: On Bonds On Notes—Schedule “14” Miscellaneous Total BONDS PAYABLE—Schedule “16” SURPLUS—Exhibit “D” (Excess of Assets over Liabilities) TOTALS - $554,644.05 $427,543.28 $127,100.77 NOTE:—No provision has been made for the value of dirt streets, or the grading thereof. Light & Water Plant and the Sewer System are shown at book value. No depreciation having been written off. * $ 1,355.17 $ 1,023.42 $ 331.75 $ 3,666.63 $ .3,458.30 977.31 949.31 164.00 <«. $ 4,643.94 $ 4,571,61 $ 72.33 $300,000.00 $200,000.00 $100,000.00 212,12340 193.655.49 18,467.71 EXHIBIT “B” COMPARATIVE STATEMENT INCOME AND EXPENSES SEPTEMBER 1, 1921 TO AUGUST 31, 1924 INCOME EXHIBIT “A” CASH: In Offk» In Banka: COMPARATIVE BALANCE SHEET August 31, 1924 and'AufBst 31, 1922 ASSETS August 31, 1924 1922 25.00 $ 21.43 ft Bailey’s Bank, Clinton, S. C. 20,299# 5841 s (Gmtinued ea Following Column) ■ Years Ending August 31, Approx. 1921 1922 1923 1924 Average Elec. Material Sales $ 619.77 $ 313.18 $ 325.54 $ 2.53 $ 31546 Elec. Meter Sales 171.40 365.80 268.60 Electric Revenue 24,407.88 25,380.03 22,666.69 26495.48 24,712.52 Fuel Sales * 83.08 197.98 140.53 Interest Earned 707.03 1,100.55 1,012.42 940.00 Licenses 4,497.95 4,193.93 3,591.00 5,100.25 4445.78 Police Fines 2,491.00 1488.00 2477.50 2,073.60 2,042.50 Rent 600.00 650.00 > 550.00 650.00 612.60 R. &. P. Per. Prop. Tax 27,934.10 28465.08 27,600.89 28,694.85 28448.73 R. .& P. Prop. Tax Pen. 56.53 41.82 49.17 Street Tax 1,499.00 1466.00 1428.00 I447.OO 1,335.00 Tapping Fees 111.00 203.50 15745 Water Material Sales 168.57 497.87 • 111.10 14249 22948 Water Meter Sales 384.00 685.65 534.83 Water Revenue * ‘ 7499.03 8,84241 8,18449 9,878.09 8,725.88 Total Op.' Income $70,217.30 $71443.23 $68,641.67 $76,59146 $72,658.53 OTHER INCOME • A Paving: Curbing & Gutters 433.46 4,40542 Sidewalk 1425.73 3,29943 404.14 2,098.13 Street / 37488.11 8,455.55 TOTAL INCOME $109,431.14 $88,698.71 $69,479.17 $83,094.61 TOTAL EX. $32,118.43 $25,248.20 $35,270.90. $28,098.85 $30,833.36 INCOME IN EXCESS OF EXPENSES 1,076.82 9,784.99 —3,233.80 9,772.57 4,251.49 TOTAL $33,195i25 $35,033.19 $32,037.10 $37,871.42 $35,084.85 NOTE:—The above income does not include street lighting, fire hydrants, flush tanks, etc., furnished the city. Above expenses do not include provision for Plant Depreciation or inter est on Light and Water Bonds. EXHIBIT “D” SURPLUS ACCOUNT August 31, 1924 August 31,1922—Credit Balance August 31,1923—Adj. Real & Per. Prop. Tax 1920 $ August 31,1923—Excess of Income Over Ex.—Ex. “B” $193,655.49 .70 833.80 Net Increase for Year 834.50 August 31,1923—Credit Balance $194,489.99 August 31,1924—Unp’d R.&P. Prop. Tax 1922—S “11” $ 187.80 Unp’d R.&P. Prop. Tax 1923—S “12” 393.60 Unp’d License for 1922-1923—S“13” 217.75 . Excess of Income Over Ex.—Ex. “B” 18,980.76 $19,779.91 Less: 1924 Bond Issue Ex. $ 762.08 Dis. on Bonds Sold 1,370.00 Adj. R.&P. Prop. Tax 1921 14.62 2,146.70 NET INCREASE- FOR YE^tR AUGUST 31, 1924 CREDIT BALANCE—Exhibit “A” SCHEDULE “1” 17,633.21 $212,123.20 NOTES RECEIVABLE August 31, 1924 Seven past due notes aggregating (as per Exhibit “A”) (List may be seen at City Clerk’s Office) $401.94 $15,296.9' $980.7i EXPENSES 1921 1922 1923 Yean BmUag August 21, 1924 58.10 10,100.00 100.00 Adm. Salaries Board of Health Ex. Bond Interest Donations, Library, etc. Electric Material—Purchased Electric Meters—Jhirehaaed Fin Dept Expense 47.70 Fire Insurance Average Approx. $ 8,280.00 $ 8,079.00 $ 2,600.00 $ 2,780.00 $ 2,92245 58.10 10400.00 74346 1040040 634.90 10441.66 87146 10410.41 100.09 136.74 153.18 12248 144.71 3.90 26124 196.77 20148 rfwi r 46.86 4126 18342 5*42 - * ' 'v. 1 7247 Fodewtng Column) . . (\ - / SCHEDULE “2” ’ PAVING ASSESSMENTS—RECEIVABLE ^ ' August 31, 1924 Fifty-five accounts aggregating (as per Exhibit “A”) <List may be seen at City Clerk’s Office) SCHEDULE “3” ACCOUNTS RECEIVABLE MATERIAL, METERS. WATER TAPS, ETC. August 31, 1924 Thirty-six accounts aggregating (as per Exhibit “A”) (List may be seen at City Clerk’s Office) SCHEDULE “4” ADVANCE TO EMPLOYEES August 31, 1924 Six accounts aggregating (as per Exhibit “A”) (List may be seen at City Clerk’s Office) SCHEDULE “5” ~ > DISHONORED CHECKS HELD FOR cdLLECTION August 31, 1924 Four accounts aggregating (as per Exhibit "A”) (List may be seen at City Clerk's Office) SCHEDULE “6” • ~ , D DW ,, MW .-^ A€C0UNTS RECEIVABLE PRELIMINARY WATER TAPS AND SEWER CONNECTIONS „ August 31, 1924 Four accounts aggregating (as per Exhibit “A") $243 J (List may be seen at City Clerk’s Office) (CONTINUED ON THE NEXT PAGE) $180.0 $85.7