Discussion of Statement II-Expenditures:

In the foregoing statement of expenditures the arrangement of items represents a compromise between a functional and an organizational classification. For the most part the expenditures of individual departments have been kept together and the functional classification has suffered accordingly. The functional statement is necessarily limited by the impossibility of making an analysis of the functional activities of departments other than that represented by the existing segregation of working units and of appropriations or funds. The analysis of expenditures by nature or objects the socalled budget classification-is only approximately correct because expenditures were not reported on a strictly uniform basis. In many cases the budget classifications of expenditures were not available.

With a properly prepared budget these imperfections would be eliminated and the resulting expenditure statements would be of inestimable value to both the Legislature and the general administrative officials of the State. In fact without such statements general financial planning and control are almost impossible.

Besides showing how much is spent and where the money goes, such statements as this, supported by adequate detailed schedules, give a picture of the State government which is of interest in considering the subject of governmental organization, and they aid in the solution of employment and purchasing problems by furnishing independent data as to the total costs of personal services and supplies and materials bought.

STATEMENT I

COMMONWEALTH OF KENTUCKY

STATEMENT OF REVENUES AND OTHER RECEIPTS FOR

THE FISCAL YEAR 1922-1923

Compiled by Griffenhagen & Associates, Ltd. for the Efficiency Commission of Kentucky from records of the Auditor's office and reports as submitted to the Budget Appropriation Commission by the various departments, offices, and institutions of the State.