Statement of expenditures of insular cold storage and ice plant during the month of August, 1903-Continued.

Statement of stores on hand July 1, 1903, and received during July and August, 1903.

Statement of stores delivered during July and August, 1903, and remaining on hand August 31, 1903.

Ice statement, insular cold storage and ice plant, July and August, 1903.

Cold-storage space rented to Subsistence Department, U. S. Army and U. S. Nary, and revenues therefrom during July and August, 1903.

Total number cubic feet, 618,196 ; total revenues cold storage, $21,904.07.

aThis amount does not include extra meat stored for U. S. Navy, which was stored at 35 cents per quarter per month, or fraction thereof, and not by the cubic foot.

Insular cold-storage and ice-plant revenues during July and August, 1903.

Financial statement of insular cold storage and ice plant, July and August, 1903.

EXHIBIT 5.

REPORT OF THE AUDITOR FOR THE PHILIPPINE ISLANDS FOR THE FISCAL YEAR ENDED JUNE 30, 1903.

THE GOVERNMENT OF THE PHILIPPINE ISLANDS,

OFFICE OF THE AUDITOR,

Manila, P. I., November 1, 1903.

SIRS: In compliance with the provisions of rule 38 of Act No. 90 of the Philippine Commission, I have the honor to submit my annual report of the financial concerns of the government for the fiscal year 1903, showing the receipts and disbursements of the various branches of the government, by departments, bureaus, offices, and provinces, together with such deductions from results obtained and suggestions as to future policy as seem advisable.

In this report are considered all transactions of the said fiscal year which were embraced in accounts received to November 1, 1903, for the period ended June 30, 1903, and such settlements pertaining to prior fiscal years as were not included in previous annual reports.

All accounts of transactions pertaining to the fiscal year 1903 but subsequent to June 30, and all suspended items in accounts of said fiscal year, will be considered in subsequent reports according to the fiscal year in which admitted, but on account of the fiscal year to which the transactions pertained.

The organization of the office and the personnel of the executive staff at the close of the fiscal year were as follows: Auditor, A. L. Lawshe; deputy auditor, William W. Barre; chief clerk, W. H. Clarke; bookkeeping division, H. C. Lewis, chief; customs division, A. J. Gibson, chief; postal division, W. A. Walsh, chief; miscellaneous division, C. H. French, chief; provincial division, O. H. Tibbott, chief; property division, C. A. Smith, chief.

The authorized personnel at the close of the fiscal year was an auditor, a deputy auditor, three clerks of class 3, four clerks of class 4, three clerks of class 5, nine clerks of class 6, five clerks of class 7, nine clerks of class 8, ten clerks of class 9, six clerks of class 10, four clerks of Class A, two clerks of Class B, two clerks of Class C, three clerks of Class D, three clerks of Class E, two clerks of Class F, two clerks of Class G, two clerks of Class H, two clerks of Class I, two employees at $180 per annum each, and two employees at $150 per annum each. A net increase of nine clerks was granted in the appropriation for the first half of the current fiscal year.

THE BOOKKEEPING DIVISION.

Effective April 1 an exchange of positions for the period of six months was made at my request between Mr. H. C. Lewis, chief accountant of the Bureau of Insular Affairs at Washington, and Mr. W. Y. Handy, chief of the bookkeeping division of this office, for the

purpose of harmonizing accounting methods and promoting a better understanding between the two bureaus. As each and every settlement of an account, with its corresponding detail of expenditures or receipts, is required to be forwarded to the Bureau of Insular Affairs for separate compilation, it is of vital importance that the two offices shall apply the same methods of treatment and statement of the accounts, so that apparent if not real differences may be avoided.

The result of this exchange has been very satisfactory and advantageous to this office, and I have no doubt the same result will accrue to the Insular Bureau. Mr. Lewis's detail has recently been extended to January 1, in order that the accounts of the fiscal year 1903 may be settled and closed before his departure.

To the bookkeeping division is assigned, among the more important duties, that of auditing the account of the insular treasurer, covering both the insular general revenues and funds handled by the treasurer in the capacity of depositary of trust funds, the latter including the account of the Treasurer of the United States, United States Army and Navy disbursing officers, money-order funds, and all general and special trust funds of which the treasurer is by law the custodian. The combined balance of all funds in the hands of the treasurer on June 30, 1903, was $17,871,025.19 United States currency value. Detailed statements of the accounts of the treasurer as audited are certified to the Secretary of War at the close of each month. A complete statement of the accountability of the treasurer of the islands appears elsewhere in this report.

Accounts with appropriations are kept, and the work of properly distributing appropriations, charges for withdrawals of funds, and credits for unexpended balances returned to the treasury is conducted in this division.

This division examines all certificates of settlement by the auditor and keeps ledger accounts with each collecting and disbursing officer throughout the islands handling insular funds, separate accounts being kept with each officer in each official capacity in which he may serve; and so-called statistical accounts are kept whereby the compilations of the final summary of the work of all settlements declared are obtained.

All settlements of accounts payable as claims are made through the bookkeeping division and proper ledger entries made to preserve a full record of each settlement. The usual payments made in this way consist of special appropriations, of loans to provinces and payments of revenues ceded or refunded to provinces, return of deposits for export duties refundable under conditions prescribed by law, invalid money orders, and disbursements from the insular salary and expense fund. All requisitions for accountable warrants are first presented to this division, whose duty it is to ascertain that the officer making the requisition is duly authorized in the premises; that the disbursing officer to whom warrant may issue is duly appointed in the capacity named and is bonded; and to determine that the sum asked for is available for withdrawal from the appropriations made for the purpose named. It is also the duty of the division to make memorandum charges against officers to whom warrants are issued and to see that warrants are properly charged as issued when certificates of audit of the accounts of payees are received.

Abstracts of classified payments by settlement warrants are drafted each month and copies thereof sent to the Secretary of War at Wash