WASHINGTON HOMES REGISTRATION SERVICE. The demand for houses and apartments up to this writing (June 30, 1919) has been quite heavy and is still growing, while the supply is almost negligible. This demand is accounted for by the fact that many married persons who came to Washington to work for the Government are unwilling to forego much longer the comfort and pleasure of living in accommodations better adapted to housekeeping than a room or two with a shallow closet for a "kitchenette." Also because of the fact that the city is very much congested, only about 5,000 civilian Government workers in the District of Columbia having left the city since. the date of the signing of the armistice, according to figures obtained from the various personnel officers. Meanwhile there has been practically no building of houses or apartments since war was declared against Germany. Efforts are still being made to induce the building of homes in the District of Columbia, and it is hoped these efforts will be productive of much good, but it is clear that following the commencement of building operations a number of months will be required to provide additional housing facilities. LOANS TO BOARDING-HOUSE KEEPERS. The loans made through this office to aid in equipping and operating emergency boarding houses for war workers amount to $25,053, on which principal had been reduced to $13,657.78 by June 30, 1919.1 The plan under which these loans were made is substantially the same as was followed by the Housing and Health Division of the War Department in rendering financial assistance to matrons of approximately 25 emergency boarding houses opened in the spring and summer of 1918. An outline of the plan is deemed proper in this report: All persons applying for loans for the purpose indicated were carefully investigated, particularly as to their training, experience, ability, financial responsibility, morality, honesty, general health, and their capacity to exercise a firm and tactful control over, but sympathetic interest in, the occupants of their houses. We proceeded on the theory that an effort should be made to improve the living standards and health of war workers. Being satisfied as to the advisability of making a loan, the office authorized the applicant to incur bills, subject to approval, up to the amount of the loan agreed upon; secured such loan by a demand note bearing interest at the rate of 5 per cent per annum and secured by a chattel deed of trust duly recorded; required the borrower to pay premium for fire insurance on the chattels; stipulated dates and amounts of monthly curtails; limited the number of persons to be accommodated in the various rooms of the house and the prices to be charged such persons; and specified that the house was to be subject to inspection. In a few instances, the office also obtained collateral security for the loan, or had 327 the repayment of all or a part of the loan guaranteed by a third person. The plan of the Housing and Health Division of the War Department, hereinbefore referred to, worked very successfully and the plan adopted by this office should do likewise, except that it may be difficult, in view of the changed housing conditions following the signing of the armistice, to keep the houses practically full for one year after the respective dates of the loans. MANAGEMENT OF COMMANDEERED HOUSES.2 These houses consist of two classes, namely, those operated by the corporation for the housing of war workers and those leased by the corporation to private persons to operate for the accommodation of such workers. Of the first class there were 22 houses, capable of sheltering 435 persons, each house presided over by a matron selected after careful inquiry as to her character and qualifications. The occupants of these houses obtained clean and nicely furnished rooms and 15 meals per week at reasonable prices. The operation of these houses, which were generally large residences in good sections, resulted in a financial loss to the corporation, but this loss is believed to be more than compensated for by reduced labor turnover and increased efficiency as regards the persons housed. The corporation began to stop operating these houses in December, 1918, and on April 30, 1919, ceased to operate all of them, either turning them back to their owners or leasing them to individuals to continue operations at the standard that had been set and subject to our inspection. Of the other class mentioned, 22 houses were leased originally to persons to operate for the accommodation of war workers, and in all cases where owners were willing to accept our tenants their houses have been returned to them. MANAGEMENT OF HOUSES TRANSFERRED FROM INTERIOR The houses on New Jersey Avenue, B and C Streets, 1 Two cases have been turned over to the Legal Division for foreclosure. By Jan. 1, 1920, the balance of principal due on the remainder of cases was $3, 842. 18. 2 For details see report of committee on requisitioned houses, p. 312. APPENDIX XVIII. FISCAL DIVISION. Introduction-Scope and policy-Organization--Field orgarization and operations Statement for period ending July 31, 1919, Philadelphia-Working methods- Accounting section-Administrative audit-Routine of auditing field payments Freight and traffic-Insurance Commissary-Method of accounting in commissaries operated by contractors-Plant account-Field instructions--Equipment for field office-Instructions to timekeeper and paymaster-Sequence of material purchases and receipts - Accounting and forms-Accomplishments. INTRODUCTION. To the Fiscal Division, the "official financial recorders" of the corporation, fell the lot of keeping a complete and accurate record covering all transactions which involved the disbursement of a $100,000,000 appropriation to provide "housing for war needs. In accordance with section 6 of the act of Congress approved May 16, 1918, the corporation was to furnish a complete detailed report at the beginning of each session of Congress of all moneys disbursed, showing for what purpose they were expended. SCOPE AND POLICY. The magnitude of the duties of this division being fully realized, the first step was to prepare a set of instructions and forms detailing the policy under which the corporation was to operate. Among the problems considered were: 1. The protection and safeguarding of public funds. 2. The collecting of information for the preparation of analytical reports. 3. Provision for simplicity. 4. Provision for elimination of duplication. 5. Departmental cooperation. In handling problem 1, consultations were held with the Comptroller of the United States Treasury as to the governmental prerequisites for disbursements, and application was made of his knowledge and advice. Forms of contracts, orders, and other sources of authority to purchase were adopted (hereinafter described) to indicate clearly "value received," so for each disbursement made there was thus provided full security for the safeguarding of public moneys. To cope with problem 2 it was necessary to consider the segregation of costs properly classified, first, with a view to keeping within the allotment assigned for each development; second, to keep abreast with the current costs for the purpose of ready comparisons of estimated costs with actual costs of the construction work. Such segregation was also a means of providing safety against possible extravagance. Our third problem was to record in a comprehensive analytical manner the necessary data which would fully reflect the operations of the numerous departments of the corporation, and having in mind the scarcity of experienced auditors and accountants it was accordingly determined that the accounting system to be installed should be systematized, thus providing for a simple and uniform method. The fourth condition, "Elimination of duplication," was given consideration in its broadest sense, first, for utmost efficiency, and secondly, for the conservation of man power, and thirdly, for its saving in a monetary sense. The fifth problem, "Departmental cooperation," was one for serious consideration. The Fiscal Division being the pulse of the corporation had direct contact and relationship with each division, each of which desired certain information kept in order to reflect their accomplishments from a financial standpoint, thereby doing away with the necessity of additional clerical hire. With these conditions given full consideration there was prepared and edited a "Manual of Instructions" with accompanying forms, covering all requirements and detailing in a minute fashion the necessary procedure for all conditions that could be anticipated. ORGANIZATION. The second step, and of no less importance, was the obtaining of a competent personnel for the Washington office and the several field offices. The outlook for auditors and accountants was most discouraging. Minds trained for this class of work were in urgent demand. Other departments were offering higher rates of pay than we could conscientiously grant. With the draft as one outlet channel and big business as another, the supply for this class of man power was seriously depleted. This condition intensified the work of the division. by placing an added burden to the acquired staff. With persistency foremost in mind there became even tually available a limited number of men for executive positions patriotically loaned by prominent contractors and engineers of the country. It then became the task of the division to comb the market for assistants with the hope of securing a number with sufficient basic knowledge of commercialism and to school them as to our methods, system, and requirements. Thus, by this process it was possible to man the several posts and keep the machinery in operation. The personnel of the division at the peak of its activities consisted of a comptroller, a deputy comptroller, a general auditor, an assistant general auditor, a chief accountant, a head bookkeeper, a chief project auditor, 3 traveling auditors, 2 district auditors, 37 field auditors, 110 assistant field auditors, 11 project auditors, 6 auditors on a contractual relationship, 1 auditor on transportation tariff, 1 auditor on loans to public utility companies, 1 auditor on furnishings and equipment, and the necessary stenographers, typists, and clerks. The comptroller was charged with the management of the division to see that payments were made promptly and accounts correctly recorded. The deputy comptroller was the chief aid to the comptroller and assumed his responsibilities during his absence. The general auditor was charged with the responsibility of preparing the "Manual of Instructions" and accounting forms that were used by this division. He organized the various field offices and was responsible for their efficiency and management. He was in charge of auditing all disbursements of both the Washington and field offices. The assistant general auditor was responsible for the complete audit of all real estate purchases, observing that the proper form of contract had been entered into, that the property described in the closing papers was in accordance with the plot diagram submitted, that the price negotiated was paid in like amount, and that the abstracts and deeds conveying title were proper and in order. He also generally assisted the general auditor in legal matters. The chief accountant was responsible for the system of control accounts and its application; he was in charge of all books and prepared all balance sheets, analytical and financial ststements. He was assisted by a head bookkeeper, assistant bookkeeper, and clerks. The chief project auditor was charged with complete administrative audit of all payments made in the field. He scrutinized all payments after having ascertained that all were properly supported by the detail of purchase, orders or authority, evidence of receipt, and that the authorized signatures were affixed. The auditor on hotel and operating accounts (which included commissaries and canteens) visited the various developments, audited their accounts, and prepared comparative statements of their standing. The traveling auditor visited the various construction projects, observed their method of management, assisted in increasing efficiency, and in general aided in solving the various problems presented to them by the field auditors in addition to correctly interpreting the instructions. FIELD ORGANIZATION AND OPERATIONS. The Fiscal Division was represented in the field offices by a field auditor, who reported to the works superintendent but was in constant communication with the general auditor in the Washington office for advice and guidance. He was furnished a "Manual of Instruction" and forms which clearly defined the procedure for keeping accounts and the authorizing of payments. The entire clerical force of the contractor reported to him. He was aided by assistant auditors who were assigned to the various branches. of the field office; i. e., timekeeping, pay roll, purchasing, materials, and bookkeeping to keep an audit abreast with the activities. The corporation, with a view of economy, did not parallel the contractor's office force for purpose of check. Since the contractor's office force reported to the field auditor through the contractor's office manager, he was able to keep in constant touch with all material matters. Although the workings of the field office are clearly brought out in the manual, we will take a specific case to set forth the sequence of an operation: 1. The contractor is about to construct a building. The materials are not on the ground. 2. A bill of material is prepared from blueprints by taking off quantities required. 3. It is presented to works superintendent for his approval as to quantity and grade. 4. Contractor secures competitive bids. 5. Order prepared and issued to lowest responsible bidder. 6. Copies of orders distributed to vendor, field auditor, Fiscal Division, contractor, and Construction Division. 7. Material is received by contractor and checked by assistant auditor. 8. Receiving ticket is filed with corresponding purchase order. 9. Invoice is received, recorded, calculations and extensions checked, and delivered to Materials Department for proof of receipt of material. 10. Material clerk refers to order file, compares bill rendered with receiving ticket to see that it checks for quantity and quality, and further compares invoice rendered with purchase order for check of quantities ordered against those billed and quality ordered against that billed and price quoted against that billed, also making proper notation of its passage in order to prevent possible duplication of payment. 11. Invoice with receiving tickets attached and signatures affixed are returned to bookkeeper for distribution and entry. Invoice is then vouchered and approved by contractor's representative and delivered to field auditor. . 12. Field auditor reviews voucher for final check, signs, refers to works superintendent for countersignature, and then it is transmitted to field disbursing agent for payment. (All checks are signed by the disbursing agent and countersigned by the field auditor, who are both bonded employees.) 13. Original voucher is then forwarded to the Washington office for entry and administrative audit. A specimen form of a field accounting report which is submitted to the Washington office on the 10th of each month covering all transactions to the end of the previous month, is submitted herewith. These reports are reviewed, criticized, and audited and checked against the control accounts kept by the home office. Specimen form of field accounting report. $3,100, 952. 54 95, 180. 23 10.. $100, 890.10 40, 654. 45 3, 196, 132. 77 27, 268.52 None. 15. Roofing. 15, 295. 32 None. None. 20. Heating. 63,925.85 21.. Lighting. 27,970.78 Flooring. 38, 478.95 23. Hardware.. 104, 711.90 27, 268.52 808, 934.73 Concrete paving... Concrete curbs and gutters.. Cement sidewalks.. 345, 298.65 302, 011.09 7,722.63 12, 205.93 1,352.70 115, 411.02 106,375.85 33.20 58,328.95 13, 367.14 28, 248.59 19,009.11 9, 259.57 76.70 34, 155.38 80, 437.02 34,167.01 11,344.68 $50, 405.73 $151, 295.88 64,057.45 463,636.08 344, 497.09 42, 428.64 25,927.97 30,380.96 53, 543.97 153,554.89 89,964.07 27,636.30 45,076.38 22, 124.71 35,730.64 17,526, 10 8,349. £1 40.50 16,787.77 443.71 20, 252.79 646, 508. 18 50,151.27 38, 133.90 31,733.66 168,954.99 259, 930. 74 153, 889.92 55, 607.08 83,555.33 520.41 54, 408.17 141,932.36 56,489.58 38,317.79 í 198.06 Total specific accounts. 1,477, 795.81 1,623,156.73 3,100, 952.54 Schedule B, suspense ac counts.. Total of both.. 95, 180. 23 95, 180.23 1,477,795.81 1,718, 336.96 3,196, 132. 77 1 Credit. Obligations not paid nor entered: Unpaid invoices on hand (per schedule C).... Total..... Contingent liabilities: |