public service program or a definite public improvement program which shall have been previously approved by the board of estimate and apportionmentsuch plan or work program to set forth not only the kind of activities authorized, but also the maximum annual cost which may be incurred for each. 6. That provision be made by resolution for the exercise of administrative control over funds, appropriations, and contracts authorized through: (a) Making the department heads responsible for voucher certification and inspection; and (b) Making the Comptroller responsible for independent inspection, audit, and central accounting records and reports. 7. That provision be made by resolution for the exercise of administrative control over the public service, over the efficiency and economy of management, and over fidelity of custodianship through: (a) A system of allotments and imposing on officers the duty of approval of requests for allotments; and (b) The establishment of cost, stores, and property records and through (c) The submission and audit of periodical administrative reports. DEFINITION OF FORMS " For the purpose of this presentation, the terms departmental estimates." "budget," tax budget," "corporate stock budget," "appropriation bill," and "act of appropriation" will be understood to mean respectively: 1. The term departmental estimates" means the estimates of expenditure submitted to the board of estimate and apportionment by heads of departments, bureaus, and offices, "in order to enable said board to make a budget" as required by section 226 of the charter. 2. The term budget" means the document or documents prepared by the board of estimate and apportionment and submitted to the board of aldermen after public hearings on the departmental estimates, setting forth in most summary form the proposed financial program" supported by summaries of estimated revenues, expenditures, and finance conditions, the proposed appropriation ordinances and information necessary to an and legislative measure. 3. The term corporate stock budget" means the summaries of proposals and the supporting information submitted for authority to borrow on corporate stock and to incur liabilities and make expenditures payable from corporate stock funds. 4. The term "tax budget" means the ordinance with supporting information submitted for authority to levy returns, incur liability and make expenditures payable from the general fund, i.e., the fund made up of the taxes and other general revenues of the city. In addition to these, it is suggested that it might be desirable to have a "local improvement budget" to definitize a program for works to be paid for by special assessment. 5. The term "appropriation ordinance" means the document prepared by the board of estimate and apportionment acting in the capacity of an executive committee for the administration, submitted to the board of aldermen in the form of an ordinance with items of appropriation with the "terms and conditions" attached that are to govern the proposed expenditures of these items, as required by section 226 of the charter. 6. The term "act of appropriation" means the appropriation grants or ordinances finally adopted by the board of aldermen and approved by the mayor or passed over his veto. WHAT CAN BE DONE FOR NEXT YEAR Citizens are not only vitally concerned in the ultimate development of a budget plan which will give exact information about what the city is doing and what is proposed, but they are interested in having an early decision on the question, What can be done for 1916. If the mayor and the borough presidents begin now, they can get from each of their departments a formulation of the views of their subordinates on the " public service" which they think the city should render; on the "public improvements" needed; on the form of "appropriation ordinance" which would lend itself to highest efficiency in management and economy in public expenditures; on the "terms and conditions" which should be attached to the ordinance to make administrative control effective. This information could be referred to the "tax-committee" and the "corporate-stock-committee" of the board, with instruction that each proposal for increase in public service" and each proposal for " public improvements" be made the of the board could be utilized by its committees, and the various citizen organizations interested in developing the "public service" and in making further " public improvements" may be requested to give to the committees of the board the benefit of their consideration and discussion. By formulating a definite proposal which may be considered and discussed by getting the many agencies which make public opinion at work on these proposals by offering to the public a means whereby views may be expressed and conclusions reached which are based on actual facts and conditions-by making the "tax-budget" committee the instrument for preparing a definite "public service program and the "corporate stock" committee the instrument for preparing a public improvement program," the board would have before it a well considered basis for passing on estimates for 1916, and the public could have some appreciation of the significance of the various items of the "appropriation ordinance" when it is submitted to the board of aldermen. The same general plan might be followed for developing a revenue program" and a "borrowing program." The report of the committee appointed to consider new sources of revenue might be made the first submission for discussion on that side. The "agreement" with the bankers might be made the first subject for discussion in the development of a borrowing program. IMMEDIATE BENEFITS TO BE DERIVED The city in all its working relations has been made aware of the harm which may be done by trying to make the "appropriation ordinance" do the work of a budget. The "segregation" of items of appropriation to a degree needed to make this serve as an analysis of expenditures and answer the demand for publicity, has had the effect of making the board as the head of the administration tie its own hands. The board has receded in part from this position but so far it has given the city nothing in its place. This is the negative side of recent experience in attempts at budget making. On the positive side it is thought that the progress which has been made in organization in the introduction of improved methods of accounting and administration, in the reduction of waste and increasing both individual and group efficiency may be conserved and the way opened to enforce responsibility and to encourage the exercise of executive discretion in the transaction of business by 1. Taking the "functional segregation" out of the appropriation ordinance and making this simply an instrument through which authorities are granted to spend money; ted to getting official proposals before citizens and aldermen; 3. Establishing by resolution the "terms and conditions" needed to make effective a well considered plan of control to hold subordinates responsible to elected officers, and elected officers responsible to the electorate. Since exact information is essential to the exercise of legislative and administrative control, as well as to enforce responsibility, the advantages to be gained in making possible an improved method of accounting and reporting should not be overlooked. Briefly stated, the improvements in the present accounting methods which would be facilitated are: 1. Elimination of duplication of records and processes 3. The establishment of a more satisfactory means of analyz ing both purchases and cost of work 4. The production of periodical business statements with such promptness and accuracy that administrative officers may take action at a time to make it effective In the text which follows, a separate section or chapter is given to each of the foregoing constructive recommendations. The form of the proposed "appropriation bill" or authorization to spend money which is recommended, is attached (page 91). A form of allotment resolution of the board of estimate and apportionment, or authorized work-program, is shown on page 94. The more minute details of work authorizations would be found in the executive sub-allotments and in the reports showing cost of work. |