General account of the treasurer-Continued. THE PROVINCE OF ZAMBALES. [Organized August 28, 1901.] Character of item. Debit. Credit. Received by transfer from former collector of internal revenue for Zambales.. $144.60 CONSOLIDATION OF ITEMS IN THE GENERAL REVENUE ACCOUNTS OF PROVINCIAL Municipalities of the province of Laguna-General account of the collector of internal revenue for the province with reference to refunds by the insular government. Refunds of internal revenue by warrant $8, 252.48 Refunds by warrant of forestry collected in other provinces. 111.56 $8,364.04 Credit. $4,141.99 141.24 4,080.81 The province of Laguna was not organized until July 1, 1902, but some of its municipalities were organized prior to that date, and became entitled to refunds of internal revenue and forestry collections under legislation by the Commission. The provincial act, as amended by act No. 133, requires the auditor and the treasurer of the islands to examine once each quarter the accounts of each provincial treasurer. Every effort has been made to comply with this legal requirement, but it has been found impossible to do so, very largely on account of inadequate means of transportation. Examiners have been unable to get to and away from provinces promptly. However, as all accounts of provincial treasurers receive a rigid audit in this office the public interests have not suffered. In view of the practical experience acquired during the past year the auditor now very earnestly recommends that the provincial law be so amended as to authorize the employment of the auditor's examiners exclusively in visiting the provinces for the purpose of giving instructions to the various treasurers and clerks relative to the proper rendition of their accounts and in the application of provincial and municipal laws thereto. While engaged in this work the examiners would also be able to give instructions to other officers collecting and disbursing insular revenues in the provinces and on their routes. The result would be a great improvement in the service in a very short time. The laws of the United States contemplate a "double check" on all accounts, i. e., an examination by the administrative branch of the government as well as by the proper auditor. (See sec. 14 of the act of July 31, 1894, known as the Dockery Act.) While we have no similar law for these islands, the spirit and purpose of the law cited may well be observed in certain classes of accounts. The administrative examination of the accounts of provincial treasurers may be safely intrusted tothe able corps of examiners under the direction of the treasurer of the archipelago operating alone, while the auditor's examination may be as well done in this office as in the field. The examinations by the force under the direction of the treasurer should be largely for the purpose of determining that the provincial treasurer has charged himself in his accounts with all collections actually made by him, and that he has exercised due diligence in making the collections contemplated by law, and in ascertaining that the provincial treasurer has on hand the proper amount of cash as shown by his collections and his aggregated credit vouchers. No scrutiny as to the detail of these vouchers need be exercised, as that work will be done, down to the minutest detail, in the office of the auditor. There is no element of the accounting except that involving failure to take up an item which should have been charged and evidence of the actual possession of the cash balance which may not be determined with absolute certainty in the audit of the account in the provincial division of the auditor's office. I can not impress too strongly upon all concerned the desirability of confining the efforts of the examiners of this office almost solely to the work of instructing accountable officers throughout the archipelago. The frequent changes which occur in the provincial treasurerships and the office forces render this all the more necessary. This work can not be satisfactorily done, however, so long as the examiners are employed in the field in making long and tedious examinations which must necessarily be repeated later in this office by the regular clerical force. Respectfully submitted. Hon. HENRY C. IDE, Secretary of Finance and Justice, Ayuntamiento. A. L. LAWSHE, Auditor. SUBIG BAY NAVAL RESERVATION. [Detached from the provinces of Zambales and Bataan under Executive order of the President of the United States, dated November 9, 1901. Limits defined in General Order No. 61, Navy Department. Lieut. Col. O. C. Berryman, U. S. Marine Corps, by direction of the senior squadron commander, assumed control of affairs on January 21, 1901. Relieved May 15, 1902, by Commander U. R. Harris, U. S. Navy, as governor of the reservation.] General account of the governor. Transfer of internal revenue from treasurer, province of Bataan.. $2,593. 70 115.56 Salaries and wages.. Public buildings.. Contingent expenses.. Payments to municipalities. Balance due municipalities... Balance due reservation.. Total The Subig Bay Naval Reservation, as created by the Executive order cited, placed this territory outside the jurisdiction of the War Department and insular government, but under instructions of the President the auditor for the archipelago was later charged with the duty of settling and adjusting the accounts arising under the government of the reservation. Respectfully, A. L. LAWSHE, Auditor. EXHIBIT V. THE GOVERNMENT OF THE PHILIPPINE ARCHIPELAGO, The SECRETARY OF FINANCE And Justice. Manila, October 28, 1902. SIR: In reply to your verbal request of last evening, through your private secretary, for a statement of the loss in gold value occurring in the treasurer's general revenue account by reason of the change in ratio from 2.40 to 1 to 2.46 to 1, October 22, I have the honor to advise as follows: There was in the general revenue account of the insular treasury at the close of business October 21 local currency amounting to $10,905,927.22, which at 2.40 to 1 was equivalent to $4,544,136.34; at 2.46 to 1 this local currency was equivalent to $4,433,303.75, making a loss in gold value, expressed in United States currency, of $110,832.59. The cash balance in the general revenue account of the treasury at the close of business October 21, comprising both United States currency and local currency at 2.40 to 1, was equivalent to $7,315,382.86 United States currency, which was depreciated on the morning of the 22d by the difference above stated. Respectfully, A. L. LAWSHE, Auditor. GENERAL REVENUE ACCOUNT OF THE TREASURER OF THE ARCHIPELAGO, JULY 1 TO SEPTEMBER 30, 1902. Appended is a statement of the general revenue account of the treasurer of the archipelago for the first quarter.of the present fiscal year. A change in ratio from 2.27 to 2.35 to 1 occurred July 7, and the credit arising thereby in the gold expression of the treasurer's general account was $165,276.86. On September 23 another change, from 2.35 to 2.40 to 1, was made, and a credit of $91,121.34 was necessary in the treasurer's account expressed in United States currency. It appears that from January 1 to September 30 in the treasurer's account alone there was a net loss in gold value of $845,917.784, due to depreciation of local currency. Difference due to change in official rate of exchange in the conver sion of local to United States currency Balance due government... Total...... August, 1902. Difference due to change in the official rate of exchange in the conversion of local to United States currency.. Balance due government.. Total.... 723,239.90 Difference due to change in official rate of exchange in the conver sion of local to United States currency. Balance due government... Total.... 980, 711.72 Balance due government September 30 Grand total.. Total withdrawals.. Total differences due to change in official rate of exchange in the conversion of local to United States currency.. EXHIBIT VI. ESTIMATED EXPENSES AND REVENUES OF THE CENTRAL GOVERNMENT AND OF THE CITY OF MANILA DURING THE FISCAL YEAR 1903. THE GOVERNMENT OF THE PHILIPPINE ISLANDS, EXECUTIVE BUREAU, SIR: I have the honor to transmit herewith, pursuant to your request, a detailed schedule of the estimated expenses and revenues of the central government and of the city of Manila during the fiscal year 1903. Very respectfully, The SECRETARY OF FINANCE AND JUSTICE. BEEKMAN WINTHROP, Estimated expenses of the Government of the Philippine Islands for the fiscal year ending June 30, 1903. a The extraordinary expenses for the fiscal year include $75,000 for "Suppression of epidemic diseases and pests," and $50,000 for expenses in connection with establishment of a leper colony at Culion. The extraordinary expenses for the quarter ending September 30 are due to epidemic of cholera. The extraordinary expenses are for repairing wharf and buildings at Mariveles and cost of transporting disinfecting barges to Iloilo and Cebu. As the expenses of the forestry bureau are to be deducted from the receipts before such receipts are turned back to the provinces, the expenses and receipts are not summed up in the final statement. 4 Extraordinary expenses are for purchase of instruments. |