Each of these groups is subdivided into grades, with appropriate ranges of salary to correspond to the various kinds of services required of the group in the order of their importance. Within each grade and corresponding range of salary, various salary rates have been indicated in order to provide for advancement with length of service and degree of efficiency.* Having developed the specifications and rates of compensation for the several positions established, the head of the bureau of standards presents his recommendations to the board of estimate and apportionment, for its consideration and adoption. The schedule of positions with standard specifications of salaries and grades thus developed would support the appropriations for personal services, conformable to the recommendations above discussed.

Division of Supplies

The work of the division is to develop specifications for supplies, materials, and equipment, and to prepare a proper code and catalogue which would make the specifications readily utilizable for purposes of contracting, ordering in the open market, making requisitions for purchases, inspection, receiving goods, ordering, store keeping, auditing, etc.

The list or catalogue of specifications, when established by resolution, may be effectively utilized in the manner suggested in the fourth constructive recommendation above.

Bureau of Contract Supervision

The powers and duties of the bureau of contract supervision are as follows:

"To take the review of plans, specifications and estimates of cost and forms of contract which had been done by the Bureau of Municipal Investigations in the Department of Finance and also take over the work of analyzing corporate stock requests which has been done by the same bureau.

In addition to taking over this work the bureau has had assigned

to it work as follows:
Accumulation of cost data on contract work
Analysis of bids received

Investigation and submission of reports on the progress of

construction contracts

Establishment of standard contract practice in various departments having charge of construction work Preparation of plans and specifications where necessary"

CENTRAL CONTROL BY DEPARTMENT OF FINANCE The recommendations for the purpose of exercising control over funding and purchasing relations in the department of finance are found

* See Exhibit 18, page 134.

divisions, viz.:

1. Division of inspection

2. Division of audit

3. Division of accounting and reporting

The division of inspection receives from each department and office where goods are ordered, whether by contract or on open market order, a copy of each order issued. This is made the basis of the inspector's return. As soon as deliveries are made, notice of the delivery is received by mail, in the forin of a card and an invoice. Upon receipt of notice by mail, inspection is made of the delivery, and the inspector who performs the service makes a return upon which the condition of the goods is certified as a part of the facts upon which the voucher may be audited. Whenever the work is in the nature of repair or construction, the inspection is made by the engineer of this division, and the return is made a part of the facts which go before the audit.

Division of Audit

In the division of audit review is made of all of the evidence, including findings of the inspectors of the department of finance as well as the evidence presented with the certified voucher. It is not until after the audit is completed that warrant is drawn for payment.

Division of Bookkeeping

In the division of accounts all contracts are registered before they are finally approved. Also, an account is established with each appropriation and with each contract. When vouchers are received from departments, they are registered against each appropriation and each contract affected. Entries are also made in each account affected, from the warrant drawn after audit. In this division, therefore, a double control is established; first from the voucher when registered, and second from the warrant when drawn; which control runs both to the appropriation account and to the contract or open market claim.

CONTROL OVER PURCHASES AND CONTRACTS IN THE

DEPARTMENTS

The control over contracts and purchases in each department falls under three heads: (1) the control exercised at the time the contracts are entered into; (2) the inspection at the time of delivery or completion or work; and (3) the voucher certification or scrutiny which is given within the control office of the department by the departmental auditor and accountants prior to final approval or certification by the head of the finance for payment.

Advantages of Itemization of Appropriations Recommended

The advantages of the itemization of appropriations recommended are to be found not only in the fact that it provides for the utilization of all of the machinery of control which has been provided, but it also admits of the development of this machinery to a much higher degree of perfection than it has at present attained. Through the subclassification of appropriation accounts by objects of expenditure the control over payrolls and payroll orders goes down to the specification established by the board of estimate and apportionment in its standardization of salaries and grades, as well as to the enforcement of all of the regulations of the civil service commission both municipal and state. By establishing a standard classification for supplies, materials, and equipment, a price current division could be established in the bureau of audit of the department of finance which would utilize all of the specifications established in the bureau of standards of the board of estimate and apportionment, as well as serve effectively to check the various purchasing agencies of the city, giving to the auditor the means for passing on the justice and fairness of each claim presented. This would also facilitate the passing of bills to such an extent that the time could be reduced to a minimum without in any manner impairing the efficiency of the audit.

ADVANTAGES TO BE GAINED IN THE EXERCISE OF ADMINISTRATIVE CONTROL OVER PROPERTY,

STORES AND COST ACCOUNTS AND

REPORTS

The distinguishing characteristics between fund accounts and cost accounts have already been stated. There is a still more fundamental difference between fund accounts and those which represent custodianship, whether of property or stores.

Examples of Cost Accounts

For purposes of administration it may be desirable to go to very great length in analysis of costs. For example, in ascertaining the monthly cost of running an automobile, it may be desirable to have the accounts representing:

In fact, without some such analysis of the cost of running an automobile, it would be impossible for the administrator to know what are the elements of increase or decrease of cost, and whether the performance of the automobile in its essentials conforms to some standard which has been fixed as a basis for judgment from experience with automobiles of the same kind. Having these accounts it is desirable to have the

As a matter of fact, the foregoing is an actual report which has been prepared from accounts which have been in successful operation for years. Again, in engineering work, as in the building of a tunnel for such project as the new water supply, it may be desirable to have one general account to show the cost of driving the tunnel, another for lining the tunnel, etc. For purposes of administration, it would also be desirable to have the costs of driving analyzed in some such manner as the following: