Verbatim Report of the Annual Meeting ...

APPENDIX

Auditor's Report for Fiscal Year Ending October 31, 1922.
ARTHUR ANDERSEN AND COMPANY

Accountants and Auditors,

National City Building, 17 East Forty-second Street,

NEW YORK, N. Y., November 21, 1921.

Executive Committee, American Electric Railway Association, 8 West Fortieth Street, New York City:

DEAR SIRS: As instructed we have audited the books and accounts of the AMERICAN ELECTRIC RAILWAY ASSOCIATION and of the COMMITTEE OF ONE HUNDRED for the three months ended October 31, 1922, completing the audit for the fiscal year ended that date. We now submit the following statements showing the financial condition, and the operating results for the same period. American Electric Railway Association Balance Sheet as at October 31, 1922.. Revenue and Expense Statements for the year ended

Exhibit I.

October 31, 1922 —

Statement of Revenues and Expenses....

Exhibit II.

Statement of AERA and Miscellaneous Revenues.
Statement of Association Expenses..
Statement of AERA Expenses.

Exhibit III.

Exhibit IV.

Exhibit V.

Cash in bank was reconciled with a certificate obtained from the depository, and the petty cash funds were verified by actual count with the exception of the Washington office fund, we having received a sworn statement verifying this amount. The Liberty Bonds, amounting to $600.00, which are held in a safety deposit box at the Lincoln Safe Deposit Company, were verified by examination. Inventory of emblems and paper, amounting to $481.40 and $1,024.84, respectively, were taken at cost.

In order to verify the amount of unpaid membership dues, we circularized those members whose accounts were not paid, as shown by the books, and although we have not received replies from all of our inquiries, we were satisfied from those received that any dues reported by the members as paid were reflected in the accounts of the Association as being paid.

We examined the reports of J. E. Johnson, Chairman of the Feature Festival, and Edward J. Blair, Chairman of the Exhibit Committee. The report of J. E. Johnson showed total receipts from the sale of tickets for the affair of $9,006.17. The disbursements amounted to $8,787.00 and were supported by cancelled checks, which permitted of a satisfactory verification. The net profit of $145.57 was taken up as income of the Association, as shown under Miscellaneous Revenues in Exhibit III.

The report of Edward J. Blair, Chairman of the Exhibit Committee, as submitted to the Association, may be summarized as follows:

Total receipts

Total disbursements

Balance paid to American Electric Railway Asso

ciation on October 27, 1922......

$28,510 40 27,778 49

$731 91

All details supporting the above transactions had as yet not been received by the Association at the time of our audit and a complete verification of certain minor items could not be made at this time.

GENERAL

We audited all cash transactions for the three months and satisfied ourselves that all receipts were properly deposited and that all disbursements were supported by approved vouchers.

It will be noted that the cash in bank at October 31, 1922, amounted to over $50,000.00 and consideration should be given to the advisability of investing a certain amount thereof in interest-bearing securities.

In conclusion we desire to state that we found the records and accounts in excellent condition and every effort appears to be made to conduct the affairs of the Association along approved business lines. We also wish to express our appreciation to the Executive Secretary and his staff for the courtesies extended to and the co-operation given our representatives during the course of the quarterly audits.