ABSTRACT
The accounts of Municipal Corporations and other local authorities have been, during the past few years and still are, receiving an amount of attention such as perhaps has never before been bestowed on them, both in regard to the clearness and suitability of the form in which they are presented; the material accuracy of the figures, and their compliance, or otherwise, with the terms and conditions imposed on the corporation, or other authority, by Act of Parliament. We have noted with satisfaction that gradually, but surely, old prejudices and notions regarding the examination and publication of these accounts are being removed, and that with infinite public advantage the accounts, have, in many instances, been brought under review for audit, and, where needed, re-construction by members of the Institute of Chartered Accountants. The time is ripe, and public events auspicious, for such a change. For untold years local authorities have levied, collected, and disbursed millions of pounds, and the only scrutiny to which the accounts have, in the great majority of cases, been subjected has been that of servants in the employ, and necessarily under the influence and control, of the persons liable to account. Accounts have been made up, printed, and circulated, but the defective and often erroneous manner in which they were constructed, their incompleteness, and the meagreness and often entire absence of proper explanations, prevented any but an extremely small section of the ratepayers from obtaining even a tolerable notion of the financial position of the body corporate. In truth, so utterly unreliable are many of the accounts as published, that—it has been stated on good authority—eminent financiers holding high place in the Imperial Government have been seriously misled in official reports based on such material and data as these accounts afforded; and statists of no mean repute have in the same manner been deceived. But the state of things which allows of such grave misconception is being rapidly changed; many causes contributing to effect this end. The bad state of trade, and the keenness of competition, have forced ratepayers to grasp the financial position and resources of the Corporation in order to see where adjustment, or re-arrangement, of the rates levied for public purposes, or of the method of repayment, or redemption of the public loans could in any way, consistent with sound economy and finance, be effected with advantage, and the obvious advantages which could be derived from reliable and complete accounts are universally acknowledged by the leaders of public thought and opinion. If these reasons be not deemed sufficient, it may be mentioned, last in order, but not least in importance, that recently there have been brought to light a great number of frauds and irregularities by high corporate officials; one result of which has been to promote amongst the large class, not perhaps so directly influenced by the preceding considerations, the same feeling in common with these of higher social position, and to give great impetus to a change already impending. The outcome in many cases has been the bringing of the public accounts under the examination of professional accountants; and we believe that no instance can be adduced where this has not proved beneficial to these most largely interested in the prosperity and good government of the community.
