tributes to their support. All the children have equal advantages, and the success and prosperity of the urban schools are the pride of its citizenship. The wealthiest wards are made to help bear the educational burdens of the poorest, and so all have equal school advantages.

But under the district system the rural schools are, in a large measure, dependent upon the support and guidance of small communities that have little conception of the methods by which good schools are made. Petty jealousies and neighborhood dissensions are reflected in their management. Untoward influences that would be unimportant in wider areas, distract their councils and destroy their usefulness. Because of the absence of a central controlling body, such as a county board of education, and the responsibility consequent to such a body, the schoolhouses are the merest sheds; equipments are makeshifts or are wholly lacking; there are, perhaps, six months of learning and certainly six of forgetting; the selection of teachers is in the hands of men who have little or no conception of what a teacher should be; competency and teaching ability do not assure stability of position; supplementary aid is regarded as extortion; and, indeed, in name only have we a rural system of schools in Kentucky.

And why would the schools of Kentucky be better administered by making the county the unit instead of the district? Simply because there would be a concentration of authority and responsibility in their management. There are, under our present system, an average of 210 school officials to the county. Under the county system there would be an average of five or six. Even the dullest can see that, in this wider area, it would be easier to select a school board of this limited number who would have and would manifest an interest in popular education, than it would be to secure 210 men of the same character. And, too, it is equally obvious that, since this board would be elected by the whole municipality, the electors would hold them to a strict accountability for the successful administration of the schools, as other officials are held in the administration of other county affairs. * * *

If something is not done to give the country people better schools, the time will come when the best of our rural population will crowd into our cities. This would be disastrous to the agricultural interests of our Commonwealth. The liberal education of the farmer's child in the country is the probable salvation of the farming interests. We cannot get away from the fact that the farmer's child must be made an intelligent citizen, not only content to stay on the farm if that is best, but fitted to fill honorably and intelligently any station in life. To do this he must have every

possible opportunity of education and culture that is accorded to the city child. We must rid ourselves of the idea that the country school is a literary poorhouse. There is nothing too good for the country child. Nearly every man who has made illustrious our nation's history was born and reared on the farm. The cradles of most of our Presidents were rocked by country mothers.

I am convinced that, if the county be made the unit of school government, it will be the greatest blessing that could be bestowed on the people of rural Kentucky. It will give them 119 school districts instead of 8,330. It will reduce the great army of nearly 25,000 inefficient school officials to about 500, who can be made as efficient as are the boards of education that manage the schools of the cities.

2. Auditing District Accounts

By the Superintendent of Public Instruction of Michigan.

(71st An. Rept. Supt. Publ. Instr. Mich., 1907, pp. 53-57.)

The law authorizing the Superintendent of Public Instruction to audit accounts of school districts is of recent date. It has, however, already justified itself. Before it had become operative there were requests for an auditor from several districts, and as it has become more generally known that such a law exists, the calls have increased far beyond our ability to respond, there being no one in this department who can give the matter his whole attention. The many requests show however that there is much dissatisfaction with the present method of accounting for public funds.

The carelessness and negligence, disregard and ignorance of the plain letter of the law with reference to accounting for public moneys is surprising and altogether too common. Sometimes officers do not so much as read the laws under which they are supposed to be operating, to say nothing of following such laws, nor is this condition confined to the school districts. In many cases it has been necessary to consult the books of the township before the district accounts could be audited. Oftentimes the data needed could not be found in the township officer's books until these books had been audited and proper corrections and additions made. Sometimes it has been necessary even to go to the books of the county treasurer for data that should be found in the township treasurer's books. This would not be the condition if the township books were kept in accordance with the forms they contain, i.e., if each account were kept under its proper fund or head. In some cases the various columns for the proper data are ignored and the whole of the moneys 'bunched' and paid out in

a haphazard manner, some funds thus becoming over paid, while others are made to suffer a shortage of money in some special use for which it was voted. * * *

This neglect is generally because of ignorance of the law, but in some cases it is to cover up the illegal use of the funds that have been diverted to some purpose not voted by the people, or in a few cases used in the private business of the officer, or stolen. Oftentimes the "statements" made cover a misuse of funds in plain violation of the expressed prohibitions of the statutes. The ordinary tax-payer, unless he is willing to stand as a "knocker," and besides being somewhat ignorant of his rights in the case, sits silent and goes away from the annual meeting, dissatisfied with

matters.

In some cases the district board takes it upon themselves to make the repairs voted by the district, and allow themselves such wages as they choose, and in some cases they have gone so far as to build a schoolhouse, because the district had voted that the district build a schoolhouse,' all in direct violation of the direct provisions of the law. And sometimes the term 'incidentals' covers an actual embezzlement of district funds. ***

Frequently all warrants, orders and receipts are destroyed after a settlement is made with the proper officers, leaving the treasurer and the clerk without any original documents of defense in case of an investigation into the financial affairs of the township or district; the books may be produced, but they are not conclusive. It is the indorsed warrants and orders, and the receipts that really show how money has been expended. Treasurers of both townships and school districts should forbid the destruction of any of the original documents of their administrations.

From the above facts and the experience gained in auditing district accounts, it is my opinion that each county should have an auditor whose duty it should be to audit the books of townships and school districts annually; also that the laws should be so amended that one of the qualifications for holding the office of treasurer should be the ability to read the English language, and write it legibly.

The violations of the laws in handling school funds and accounting for the same are usually along some of the following lines:

First. School moneys are not kept separate from other moneys. This is in violation of section 1198 of the general school laws.

Second. The school moneys are often used by the treasurer and sometimes by other members of the board for their own purposes. These officers have no thought of defrauding the district, but it is very convenient when some ready money is needed to use some of

the school money which will not be needed for school purposes. As many districts have a large amount of money on hand which cannot be used for school purposes, the money is not returned to the treasury; instead more is used. Again and again this happens until the officer finds it quite impossible to reimburse the district when he is called upon to do so. The result in several districts has been criminal proceedings against the officers. * * *

Third. The money is sometimes loaned to some friend or corporation; sometimes the district votes to loan its surplus funds on a real estate mortgage. In both of the above cases the law is violated. The district cannot go into the loaning business, even if it has a large surplus of cash on hand.

Fourth. The money is sometimes used for other purposes than those prescribed by law; the primary school interest fund, which can legally be used for teachers' wages only, has in many districts been used for all purposes; the one-mill tax money has also been used contrary to the express provisions of the law. In no case can the primary money be diverted legally from the teachers'-wages fund; the one-mill tax can, however, by a vote of the district, be used for other purposes, after a district has had in any school year eight months of school. In no other way can any of this fund be used for other purposes than teachers' wages. Occasionally money voted for a certain purpose has been diverted to some other purpose and so covered in the accounting that the ordinary person cannot discover the discrepancy; again, interest that has been paid by banks has been kept by the officers, contrary to law, such interest being the property of the district; and again, money has been voted by the district board for purposes not authorized by law, and the district kept in ignorance of the fact.

Fifth. In a few cases officers have deliberately defrauded the district, using the money of the district for private business, making no attempt to replace the same, and deliberately falsifying the district accounts and the annual report to this department. A common method of defrauding the district is for two persons of the same family or the same ilk to secure the offices of treasurer and director of the district board. Then these officers present bills for real or fancied services. Two of the officers being of the same family they pass upon the bills favorably and have them allowed, an order is drawn for the payment of the same and when presented to the moderator for his signature is signed by him rather than have any trouble about the matter; quite likely he is bribed by being allowed to do some work about the school grounds or by furnishing some wood or 'supplies,' real or fancied, at an extravagant price, another illegal act.

Sixth. Often the cause for errors is the failure to understand the various funds as designated by law. To make this matter clear a bulletin has been prepared by this department and distributed among school officers. This classifies the funds and gives their sources and the purpose for which each fund may be used.

Seventh. Another cause for errors in accounting for school funds is a misunderstanding of the powers and duties of the school officers and taxpayers. Certain taxes are voted by the district, and certain others by the school board. Officers have sometimes taken advantage of their right to vote taxes by voting a much larger amount than will be needed, and then diverting the surplus to some other use than that for which the money was assessed. *** The financial reports of district officers have been corrected so far in 1,342 districts, scattered through over 70 counties of the State. These corrections were as follows:

1. For incorrect report of primary money received .

2. For incorrect report of primary money on hand, generally because illegally used

3. Incorrect report of cash on hand

653

261

279

4. For incorrect accounts for various other reasons, among which are - lack of items of receipts and expenditures, incorrect report of wages paid, amounts due the district, failure to account for all the funds in the treasurer's hands

337

Total corrections in the above 1,342 districts

1530

In addition to the above there have been many cases in which primary interest money and one-mill tax money have been illegally used, also many cases of officers being paid for services which they could not legally perform for pay, such as labor on the buildings and grounds, furnishing fuel, etc.

There have been a few cases of defalcation which are at present being prosecuted by the Attorney General.

In nearly every case in which money has been illegally used we have succeeded in having it replaced in the district treasury. These amounts vary from a few dollars in some districts to over $1400 in others.

(Later comment, by the same official)

(73rd An. Rept. Supt. Publ. Instr. Mich., 1909–1910, pp. 7-8)

During the past year the records and accounts of nearly 100 districts in the state have been audited and the books corrected. In every case examined irregularities were found to exist, but in many cases they were unintentional, as was shown by the fact that