OFFICE ORGANIZATION AND MANAGEMENT 583 



There are four principal steps in connection with funds which have, a 

 bearing on the records to be kept. They are: (i) The establishment of the 

 fund; (2) The authorization of expenditure; (3) The operation of funding; 

 (4) The operation of spending. 



Funds are generally established by legislative act, particularly in regard 

 to general and special funds, and special funds are created from time to 

 time by the governing body in accordance with the terms of the law under 

 which that governing body is operating. Many park departments are not 

 particularly interested in the establishment of the fund, inasmuch as their 

 funds are a part of a general city budget and are provided for as an appro- 

 priation from the common council or principal governing body of the city. 

 The authorization for expenditure is ordinarily an act of the governing 

 body. Sometimes it must be provided for by the passage of an ordinance; 

 at other times by the passage of a resolution. As previously stated, the 

 establishment of the funds and authorization for expenditure in many 

 park departments are for all practical purposes combined in the one term 

 "appropriation" by the governing body of the city. Likewise those depart- 

 ments will not be particularly interested in the operation of funding which 

 consists in the collection of revenues to create the fund and to provide means 

 for the fund's retirement and payment of its interest. 



The operation of spending is common to all agencies of the city gov- 

 ernment including park departments and it is the one requiring the greatest 

 number of financial records. Spending includes: (i) Issuance of purchase 

 orders or contracts; (2) The auditing of such bills, payrolls and invoices; (3) 

 Payment of the approved bills by the treasurer. 



2. Requirements of park accounting. Municipal accounting purposes to 

 provide historical records of financial transactions, a complete account of 

 revenue and expense on all special funds, and management records in the 

 form of statements and financial reports on general and operating fund 

 procedure. It is not sufficient for a park department to make a report only 

 on receipts and disbursements in the various funds which, after all, is only 

 an indication of the honesty of the officials charged with the duty of receiv- 

 ing and disbursing the public funds. Park business, just as much as a mer- 

 cantile business, requires strict and careful management and consequently 

 statements must be provided to enable the park executive to manage his 

 expenditures just as scientifically as the merchant. As a matter of fact, 

 in many park departments the operation of revenue-producing activities is 

 quite an item and is of great enough magnitude and importance to demand 

 very detailed records. 



The budget. In most municipalities it has become a matter of legal 

 requirement for the various departments of the city government to adopt 



