TABLE NO. 12.-Intercurrent diseases which caused the death of patients during the fiscal year 1916-17.

TABLE NO. 13.-Articles made by the patients in the insane asylum during the fiscal

Dresses for women..

year 1916-17.

Petticoats...

Shirts for women.

Ruffed shirts.

Trousers for men.

Shirts for men..

Coats.....

Aprons..

TABLE NO. 14.-Ratio of deaths for the last 10 years from July, 1906, to June, 1917.

The blind asylum was transferred to this department by the terms of the Jones Act on March 3, 1917. It has facilities for 74 patients of which 29 are incurable and 45 under treatment. An inspection of this institution shows that with an expenditure of a small sum of money it would be possible to increase its capacity, and the legislature granted the sum necessary for the care of 25 additional patients, thus allowing of the immediate admission of cases requiring treatment.

It will be noted that this institution instead of being simply an asylum for the blind is a hospital for diseases of the eye in which a number of acute diseases are treated and in which a number of operations are performed including cataract. It is believed, therefore, that the superintendent of this institution should be a person technically trained in hospital work; that is, a trained nurse. With a view to institute this reform request was made of the legislature to change the appropriation heretofore granted for a practicante to that of assistant director to which appointment a competent graduate nurse, registered as such in the island, has been appointed with the expectation that eventually she will be available for appointment as superintendent of that Institution. It is recognized, however, that the change can not be made without providing a suitable position for the present director, and there is no intention in this office of making the change until such provision can be made.

TABLE NO. 2.-Diagnoses of the patients admitted into the blind asylum, curable and incurable, during the fiscal year 1916–17.

TABLE NO. 3.-Operations performed in the blind asylum during the fiscal year 1916–17

6

50

1

193

TABLE NO. 4.-Intercurrent diseases from which the patients suffered during the fiscal

Anemia.

year 1916-17.

TABLE NO. 5.-Intercurrent diseases which caused the deaths of patients in the blind asylum during the fiscal year 1916-17.

TABLE NO. 6.-Diseases of the eye from which the patients remaining in the blind asylum at Ponce are suffering and are under treatment on June 30, 1917.

TABLE NO. 7.-Age of the patients remaining in the blind asylum at Ponce on June 30,

TABLE NO. 8.-Occupation of the patients remaining in the blind asylum at Ponce on

APPENDIX IV.

REPORT OF THE AUDITOR, AND CONSOLIDATED FINANCIAL EXHIBITS.

OFFICE OF THE AUDITOR,

San Juan, August 31, 1917.

SIR: In accordance with the provisions of section 20 of the act of Congress approved March 2, 1917, entitled "An act to provide a civil government for Porto i ico and for other purposes," and with the designation of the President, as provided by section 11 therein. I have the honor to submit my annual report on the operations of the department of the auditor for the fiscal year ending June 30, 1917, with comments thereon.

SYSTEM OF ACCOUNTING AND AUDITING.

During the past year there has been no change worthy of note in the system of accounting. The system put in effect July 1, 1911, under my supervision, now seems to meet all the requirements, but changes will be made as circumstances may require. The new organic act, effective March. 2, 1917, has in it many recommendations previously made by the auditors of Porto ico, to several instances of which I take the liberty to refer. The auditor, in 1908, in his annual report, page 38, made the following recommendations: "Cases frequently are bound to come up where it seems to the auditor that the purchase is unnecessary or extravagant, and here the question arises as to just what his responsibility is under the circumstances, in case all the legal requisites exist and proper supporting papers are presented.' Section 20 of the new

organic act seems to qualify the auditor's position in the following words: "It shall be the duty of the auditor to bring to the attention of the proper administrative officers expenditures of funds or property which, in his opinion, are irregular, unnecessary, excessive, or extravagant."

The auditor again, a year later, in his annual report for 1909, page 7, recommends: "I urge most strongly that laws be passed which would bring the present bureau of municipal finance, now a part of the treasury department, under the control of the auditor's office, where I believe it rightly belongs. At the same time there exists an accounting bureau in the department of education which could with advantage be brought under the single head of accounting department of the insular government. This recommendation has been repeated by the present auditor in several of his annual reports.

Section 20 of the new organic act, approved March 2, 1917, has such a consolidation as was recommended by the auditor. Section 20 of the organic act reads as follows: "That there shall be appointed by the President an auditor who shall examine, audit, and settle all accounts pertaining to the revenues and receipts from whatever source of the government of Porto i ico and of the municipal governments of Porto i ico, including public trust funds and funds derived from bond issues, audit in accordance with law and administrative regulations all expenditures of funds or property pertaining to or held in trust by the government of Porto ico or the municipalities or dependencies thereof." In accordance with this authority examination and audit of the accounts of the municipalities and school boards, as well as of other public offices, are now being conducted by this office.

The authority conferred upon the auditor by the new organic act is far-reaching and time will demonstrate its importance.

I do not feel justified in making comments on the new law at length at this time, due to its being in effect less than four months, but hope in my next report to be able to make mention of the favorable results brought about.

FINANCIAL EXHIBITS ATTACHED TO THIS REPORT.

Following the example set last year, his excellency the governor, this year again addressed a letter of instructions to the various department heads under date of July 12, 1917, advising them to confer with the auditor and select the tables to be consolidated into this report. Several of the exhibits appearing in last year'sreport have been 237

dropped, because the information furnished by them has been either incorporated in other exhibits or is not necessary as supporting data. Of the exhibits in this report the following have been prepared by the respective departments or offices: Auditor of Porto Rico: From No. 1 to No. 5, inclusive; Nos. 11, 12, and 13; No. 22 (the disbursements part); Nos. 24, 25, and 26; No. 27 (the disbursements part); No. 28 (the disbursements part); No. 29.

Treasury department: Nos. 6 to 9, inclusive; Nos. 14, 19, 19-A, 19–B, 20-A, 20, 21, 22 (the receipts side), 23. 27 (the receipts side); and No. 28 (the receipts side). University of Porto 1 ico: Ncs. 15 tc 18. inclusive.

Department of the interior: No. 10, and Nos. 30 to 34, inclusive.
Irrigation service of Porto Rico: Nos. 35, 36, and 37.

ESTIMATED CASH INCOME, APPROPRIATION ASSETS, AND APPROPRIATIONS FOR 1917-18.

[Exhibit No. 29, Consolidated Financial Exhibits.]

Taking into consideration all the estimated revenues of the insular government during the next fiscal year, as per the estimate made by the treasurer, plus all the other probable income during the year, such as repayments of loans and cash balance on hand at the present date, we have a total of $5.686.226.87 as assets for the year. Against this we have appropriations outstanding of $6,172,802.20, which leaves us an estimated deficit as of June 30, 1917, of $486,575.33.

Past experience has demonstrated that such estimate may be increased or decreased in accordance with the changed conditions; as, for instance, if our income is increased, our estimated deficit will be proportion: lly decreased. Again, if the amounts appropriated are not all spent during the coming fiscal year, the deficit as of June 30, 1918, will be also decreased by considering part of the unexpended balances as lapses for the following year. We are safe in estimating that of the $747,156.77 appropriated for the fiscal year 1917-18, at least $100.000 will be allowed to lapse unexpended at the expiration of the two years' period on June 30, 1920, so that the deficit as of June 30, 1918, would thus be reduced to $386,575.33.

SALARIES.

A year ago a net decrease of $57,330.67 was shown under this heading as compared with the previous year. This year, however, such is not the case, and our balance points all the way through toward the opposite side of the account.

The total budgetary appropriations for the year under review exceeded those of the previous year by $545,406.03. This increase in the budget naturally had to show its effects in the compensation paid for the services given to the government. The gross increase under the heading of "Salaries' was $307,275.58, as compared with the previous year. There was at the same time a decrease of $34,346.23 over the previous year, thus leaving a net increase of $272,928.35. This increase, however, should not be considered as being the result of a general increase in the salaries of all the employees. Such was not the case, as most of the employees whose salaries had been reduced the year previous were not even put back at their old salaries. Other reasons must, therefore, account for the increase of over a quarter of a million paid in salaries in excess of last year's figures.

Not only was the general budget for the year under review greater than the previous one, which reason, as stated above, accounts for part of increase, but the pagsage of the new organic act for Porto Iico, or the Jones bill, as it is commonly called, had some effect on the increase, as it naturally brought about a reorganization of some branches of the service, which had its corresponding effects on the pay rolls of some officials and employees.

The bulk of the increases will be explained in detail in the following manner:

Office of the governor: This office shows an increase of $583.50, due to increased salary of the governor by the Jones bill, during the months of March, April, May, and June.

Office of the secretary: The sum of $1,236.28 of increase over the previous year is explained by the addition of a clerkship at $1.100 per annum and a small saving effected the previous year.

The bureau of supplies, printing, and transportation is responsible for an increase of $24,086.23. In previous years a certain percentage of the sales was allowed to the bureau as a means with which to meet its pay roll; but Joint Resolution No. 14 approved April 13, 1916, placed all the employees of the bureau on a yearly salary basis and did away with the percentage allowance.

Office of the attorney general: The increase of $5,879.75 in this office is explained partly by the increase of the salary of the head of the department from March 3 to