The foregoing are based upon the classifi cation worked out by the National Municipal League (Proceedings of 1899, pp. 116-123), as modified and adopted by the Census Bureau in many municipalities.
Stores' In order to ascertain the precise cost of administration for a given period, it is necessary to take into account, as an offset to charges against appropriations, the cost of materials and supplies not used. The best method is that of keeping a running in ventory account of materials and supplies. To do that necessitates keeping stores accounts, in which case requisitions are issued when stock is called for by a department, and then ex pense may be charged and the appropriate stores account credited with the supplies so furnished.
If accounting requirements only were to be considered, it would be advisable for each municipality to adopt this plan. However, the size and the experience of the personnel of ac counting offices in average municipalities has thus far rendered it impracticable to adopt such a system.
Substantially the same result may be attained by taking an inventory of materials and sup plies on hand at the end of a fiscal year and by placing their cost on the records. Of course, the fiscal officer should audit the inventories and open an account for materials and supplies by debiting "materials and supplies" and credit ing °inventory surplus." The materials and supplies account will be temporary, to be opened at the end of the year and closed at the beginning of the next following year or as soon thereafter as the budget shall have been adopted, by reversing the entry or by charging against appropriations provided for the pur chase of the particular class of materials and supplies shown by the inventories to be on hand. In the latter case, the charges against appropriations, less the inventory value of ma terials and supplies not consumed, will ac curately reflect the total of actual expenses for the year. This plan corresponds with the prac tice prevailing in business concerns that do not keep running inventory accounts.
Unit A noted railroad man, now de ceased, will long be remembered for his ad vocacy of the principle of "ton mile cost." The application of that idea may well be extended to many municipal functions. It would he of great interest and value if officials and taxpay ers might know the cost per unit of street pav ing, sewer construction, street lighting, water pumping and filtration, etc., and the per-capita
cost of public education and of maintaining patients in public institutions per day, week or month. Unit costs are the most significant bases for comparison and of great administrative value.
Commercial Public Municipalities are more and more engaged in commercial en terprises. Municipal water and lighting sys tems are common. Others are being added yearly. It is thought that a municipal water plant should maintain its departmental accounts in substantial conformity with the system adopted by the American Water Works Asso ciation, and that other public utilities, when operated by a municipality, should conform their accounting methods with the requirements of public service commissions in those States having such commissions, or with systems em ployed in private business of like character, if State supervision has not been established.
Municipal accounting has a pronounced effect on municipal government. Improved ad ministration is sure to result from better ac counting. Efficient administration is impossible without an adequate accounting plan. A suit able, adequate system of accounts in a munici pality will enable the authorities to judge re sults of past operations, and plan and admin ister future activities with the assurance that they are acting intelligently. It will permit the taxpayers to appraise the accomplishments of an administration and to form accurate con elusions respecting the ability, the efficiency and the economy of their chosen officials.
Eggleston, D. C., 'Munici pal Accounting> (New York 1914) ; City Busi ness, Metz Fund Handbook (New York 1913) ; American Water Works Association (Pro ceedings 1912) ; Deming, H. E., 'Uniform Mu nicipal Accounting and Home Rule' (Proceed ings, National Municipal League, 1905) ; Fair lee, J. A., 'Essays in Municipal Accounting and Home Rule' (Proceedings, National Municipal League, 1905) • Munro, W. B., 'A Bibliography of Municipal Government in the United States' (Cambridge 1915) ; Public Service Commission, New York State, 'Uniform Systems of Ac counts for Gas and Electric Corporations' (New York 1908) ; Travis, Eugene M., New York State Comptroller, 'Uniform System of Accounting for Cities of the Third Class' (Albany 1917).