FOREWORD This part begins with the presentation of general financial statements including a statement of the condition of the Commonwealth's treasury and statements of its revenues and expenditures for the fiscal year ended June 30, 1923. Following these, under the main title "Financial Administration" is presented a comprehensive study of the whole system of financial administration of Kentucky including the problems of organization for fiscal management, treasury administration, budget procedure, auditing, accounting, and expenditure control. The functions of the Legislature as well as the administrative officers are dealt with. On the administrative side the fiscal duties of the central officers and of the department heads are emphasized. The text includes an outline of a comprehensive program for much needed improvements, which in all amount to a general reconstruction of the financial control and record-keeping system. The full realization of such a program for more business-like methods in government will be possible only with a widening of interest in the fiscal side of the State's operations. The remaining six divisions of Part I take up the special problems of each of six principal accounting and financial offices of the State government. Page 25 Objections to the Selection of Fiscal Officers by Popular Vote The Objection to Divided Responsibility for Auditing FINANCIAL ORGANIZATION IN OTHER COUNTRIES The Interest Bearing Warrant Method of Borrowing State Depositories and Handling Cash Balances 68 Page The Need for More Complete Expenditure Documents The Need for a Distinct Current Audit Procedure The Need for Explicit Appropriation Heads CHECKING AND CONTROLLING COLLECTIONS Assessing and Collecting Agencies CONCLUSIONS AND RECOMMENDATIONS REGARDING DE- CHAPTER VII-EXPENDITURE CONTROL THE ORGANIZATION FOR EXPENDITURE CONTROL. CHAPTER VIII-CONCLUSIONS AND RECOMMENDATIONS ... 130 GENERAL APPRAISAL OF FINANCIAL ADMINISTRATION. 130 SUMMARY OF CONSTRUCTIVE RECOMMENDATIONS Proposed Improvements in Organization Other Proposed Improvements Requiring Legislation STATE PURCHASING PROCEDURE THE PRESENT PURCHASING SITUATION The Advantages of Central Purchasing |