The assessment group includes all accounts relating to assessment work, the levy and col lection of assessments, the financing of cost and assessments remaining uncollected.
The capital group embraces the accounts pertaining to bond issues for construction pur poses (excluding assessable work) and the ex penditure of the proceeds of such issues. There is also included accounts showing the value, appraised or assessed, of the municipality's property.
While the accounts for sinking fund trans actions are included in this group, that is be cause in cities of the third class sinking fund transactions are not numerous. If in any mu nicipality those transactions are of volume, a separate group of accounts should be estab lished.
The trust group contains the accounts of all funds or properties held in trust, including pen sion funds.
Classification of Accounts.—Having as sembled the accounts of a municipality into logical groups, it then becomes necessary to further classify them to show the channels or sources from which money is received and the purposes and objects for which it is expended. In this, as in other matters, uniformity should prevail and uniform terminology be employed.
With reference to receipts, a classification is not difficult. The groups other than the cur rent accounts group will be arranged according to the nature of the transactions occurring. In the current accounts division, receipts will be divided into two general classes: (a) revenue and (b) non-revenue.
The revenue receipts may then logically be classified as (1) General property taxes; (2) special property taxes; (3) interest and penal ties on taxes; (4) licenses and permits; (5) fines and forfeits; (6) interest and rents; (7) gifts and donations; (8) sales of prop erty; (9) departmental earnings, etc.
In the non-revenue class will be found cur rent loans, transfers, refunds, advances and such other classes as may occur in the mu nicipality.
Respecting expenditures in the current ac counts group, the situation is more difficult. It is very aptly stated in the January 1917 issue of the Municipal Research Bureau, that ex penditures should be classified in as many dif ferent ways as there are stories to be told concerning costs. The following four methods
are then indicated: "1. Total cost incurred by organization units — to mark the lines of official responsibility and the jurisdiction of each spending officer.
"2. Total cost incurred, classified by func tions — for determining questions of policy having to do with service rendered as well as to be rendered, and laying a foundation for appraisal of results.
"3. Cost of things classified by objects ex pended or used in carrying on the work; such service,' (supplies,' 'materials,' 'equipment,' etc.— to lay the foundation for considering the amounts to be appropriated to buy things needed.
"4. Total cost classified by character, that is with a view to determining what part is for current expenses, what part for capital out lays, etc.—to lay the foundation for consider ing financial policy." It is not probable that any municipal cor poration is grouping its expenditures in the four ways indicated. In many of them, a twofold classification is followed — that is, by governmental function and by purpose or object of expenditure.
In the New York State comptroller's system for third-class cities, arrangement by govern: mental function is as follows: (1) General government; (2) protection of person and property; (3) conservation of health; (4) sani tation and promotion of cleanliness; (5) high ways; (6) charities and corrections; (7) edu cation; (8) recreation; (9) public utilities non-commercial; (10) miscellaneous; (11) mu nicipal indebtedness; (12) construction and permanent improvements (financed from tax moneys or current revenues); (13) public utilities — commercial.
His classification by purpose or object of expenditure is as follows: (a) Salaries and wages; (b) traveling expenses; (c) office ex penses; (d) printing and advertistng; (e) pur chase of equipment; (f) maintenance of equip ment; (g) materials and supplies — (g-1) specify; (g-2) specify; (g-3) specify; (h) re pairs by contract or open market order; (i) light, heat and power; (j) rent; (k) insurance; (1) pension fund contribution; (m) other ex penses— (m-1) specify; (m-2) specify.