Document RJ2Kz2Xn2y6gGn7gpnGBBvbB7

BOtCEO atPLOYEES An. employees of this plant are covereo unoer the blanket bono of Anaconda Copper MInInc Company. SIGNATURES ON CHECXS AND DRAFTS The following listed persons are authorized to sicn and countersign checks ORAWN ON THE FIRST NATIONAL BANK IN EAST CHICAGO AND New Y0rk DnaFTSJ G. E. Johnson F. E. Stolte L. A. Milne A. A. Miller Plant Manager Assistant Secretary Chief Clerk Assistant Chief Clerk Two signatures are required on all checks and orafts. ERRORS AND DISCREPANCIES The following is a list of errors and discrepancies discovered during the PERIOO OF THE AUDIT ANO WHICH HAVE NOT BEEN SHOWN PREVIOUSLY IN THIS REPOR T. Salary Payrolls The follow inc payrolls nao njt been approveo by the Manager and we had them approved. May 31, 19*4 August 15, 1944 November >5, 1944 November 30, 1944 Sales Department Zinc Oxide Department All Departments All Departments General Ledger Page 170 - Custom Metal Purchases, debit column aooeo as $317,479.69 instead of $317,479.67. Page 188 - Operating Expense, Lead Refining Department, creoit column ado ED as $480,809.95 Instead of $29,857.23. Page 254 - Outbound Leao Freight debit column aooeo as $68,111.95 instead of $58,111.95. ~ N10137 GENERAL REMARKS FIXED ASSETS Buildincs nd Machinery a no Equipment accounts are carried on the books at the New York Office a no tic Furniture and Fixtures account icre. The entire balance in the Construction account is transferred to the New York Office at the eno of the year recaroless of whether the jobs are completed OR NOT, WHICH IS CONTRARY TO THE PRACTICE AT OTHER AnACONOA OFFICES WHERE WE HAVE UAOE AUOITS. COMPLETED JOBS SHOULD BE TRANSFERRED TO Np York |n THE MONTH FOLLOWINC COMPLETION ANOTHE OPEN JOBS LEFT ON THE BOOKS AT THE PLANT. Some jobs run for two or three years before they are closed and the PLANT RECORDS 00 NOT SHOW THE TRUE PICTURE. This WILL BE PARTICULARLY TRUE at December 31, 1944 in connection with appropriation No. 161, oiscusseo IN THIS REPORT UIOER "FIR LOSS ACCOUNT", "CONSTRUCTION", AND "COMPANIES AND Individuals". The check from Johnson & Hiccins for $11,379.07 will be transferred from Companies ano Individuals to Construction. The job has not BEEN FINISH EO ANO IT HAS NOT BEEN DETERMINED AS TO HOW MUCH SHALL BE CAPITALIZED, HOW MUCH IS FIRE LOSS ANO HOW MUCH OF THE OR I Cl N AL ASSET SHOULD BE DISMANTLED. WHEN THESE AMOUNTS ARE SET UP IN 1945 THEY WILL CREATE A PECULIAR PICTURE, WITH NO BALANCE CARRIED OVER FROM 1944. ACCOUNTS RECEIVABLE Custoicrs Accounts were founo to be in cooo order, all past oue accounts are BEINC CLOSELY FOLLOWED. Verification statements were maoe up on the prescribed forms ano sent to Pocson, PelOU BET i C0. for mailins. The followinc is a sumaary of the statements PREPARED BY USI Number of Accounts Amount Per Books Stateme nts Per Books Statements Zinc Oxi oe Department Less: Inter-company accounts White Lead Department Creoit Balances Uncollecti ble Accounts Anaconoa Sales Company Less: Inter-company Accounts Credit Balance Uncollectible Accounts 35 2 33 176 S 171 2 169 191 ___ l_ 190 ___ l_ 189 2 187 $ 51,332.76 14,107.50 25 $ 37,225.26 $ 36,833.19 $ 76,462.93 133.46 $ 76,596.39 17.12 71 $ 76,579.27 74,891.83 $ 33,596.87 67.50 $ 33,529.37 1.02 $ 33,530.39 70.12 66 $ 33,460.27 30,257.67 Totals 389 162 147,264.80 $141,982.69 Percent of accounts Verifieo 41.64 96. 41 PNYC00000975 GE1ERAL REMARKS 5T CONS I GNED STOCKS These he cohos were found to be i n very eooo condition. There were very few stocks which were not currently movinc and a very larce her cent ace of a cents are senoinc IN MONTHLY INVENTORY REPORTS. *E CHECKED THIRTY-TWO OF THESE REPORTS RECEIVED FROM ASENTS TO WHOM WE MAO NOT SENT VERIFICATION STATEMENTS AND FOU THEM TO BE IN ACREEMENT WITH THE CONSIGNED STOCK R ECO RO. Verification statements were maoe up on the prescribed forms ano sent to Pocson, PELOUBET & C0. FOR MAILlNC. ThE FOLLOWING IS A SUMMARY OF THE STaTENCNTS PREPAREO BY US I Number of Accounts POUNOS Zinc Oxide Warehouses In name of Anaconda Sales Company Per Books 3 10 Statements 3 10 Per Books 88,450 408,000 Statements 88,450 408,000 Ory White Leap Warehouses In name of Ana co to a Sales Company 3 13 3 75,650 75,650 13 605,300 605,300 White Leap-in-Oil Warehouses Others In name of Company Anaconda Sales 4-68 12 100 481,0J4 240,981-1/2 8 161,406____________145,835 Totals 509 137 1,819,820 1,564,216-1/2 Percent of Accounts VerifIeo 26.91 85.95 GE1CRAL LEDGER The General Leoger is kept in bouno book form and Is posted manually. A new Ledger WILL BE OPENED AS OF JANUARY I, 1945 ANO IT IS PROP06E0 TO USE A MOOERN LOOSE LEAF LEOGER SO THAT ACCOUNTS CAN BE KEPT IN Trial BALANCE ORDER ANO NEW ACCOUNTS CAN BE INSERTED IN THEIR PROPER PLACES. The Asset ano Liability accounts are still being kept by Refining, Zinc Oxide and White Leao departments although four years ago it was suggested by the New York Office that they be combineo in one account. All that was done at that time was to COMBINE THREE LeOGERS INTO ONE 800K. PNVC00000976 CIRRENT ASSETS FREIGHT CN AGENCY STOCKS - ZINC OXIDE DEPARTMENT (Continued) At November 30, 1943 average freight per pounc of material stanos at $ .0046 AS AGAINST $ .006 PER POUND AT BEG I AN I NG OF THE AUDIT PERIOO. Th IS ACCOUNT IS SET UP ON THE BASIS OF MULTIPLYING THE POUNDS ON HAND AT EACH LOCATION AT THE ENO OF THE MONTH BY THE FREIGHT RA**E TO THAT LOCATION. The DECREASE |A THE RATE PER POUNO IS ACCOUNTED FOR BY THE FACT THAT AT THE BEGIHNlNG OF THE AUOIT PERIOO THERE WAS APPROXIMATELY 336,000 POUNDS OF MATERIAL AT Pacific Coast Agencies as compared to approximately 80,000 pounos at November 30, 1943. This balance was verified against the Record of Asency Stocks as at November 30, 1943. FREIGHT ON AGENCY STOCKS - WH fTE LEAP OEP/KTMENT Ledger Debit Balance - November 30, 1943 $ '7,262.64 Reconci lement Ledger Oebit Balance - June 30, 1942 Debits - July 1, 1942 to November 30, 1943, Inc. Transfers to Stocks Crecits - July I, 1942 To -November 30, 1943, Inc. Sales from Stocks ' Ledger Debit Balance - November 30, 1943 White Lead Pounds Amount Leao-in-OIl Pounos Amou NT 542,150 $ 2,988.60 1,880,730 $ 11,077.50 2,325,348 12,924.25 1,478,265.5 10,919.41 2,867,498 $ 15,912.85 3,358,995.5 $21,996.91 2,412.061 13,528.56 2,530,752 17,118.56 455,437 $ 2,384.29 828,243.5 $ 4,878.35 This account is set up on two different bases! White Leao is hanoled in the same manner as Zinc Oxide, by multiplying THE POUNDS ON HAKO AT EACH LOCATION AT THE END OF THE MONTH BY THE FREIGHT RATE TO THAT LOCATION. LEAO-IN-OIL IS SET UP ON THE BASIS OF AN AVERAGE RATE OF $ .00589 PER POUNO, WHICH HAS BEEN USED SINCE DECEMBER, 1940, ALTHOUGH THERE HAS BEEN A NET INCREASE OF 3% IN FEDERAL Tax ON FREIGHT RATES SIBCE December 1, 1942. At November 30, 1943 average freight per pouno of White Lead was $ .00523 and Lead-In-OIL was $ .00589 as against $ .00551 and $ .00589 respectively, AT THE BEGINNING OF AUDIT PERIOO. ' These balances were verifieo against the Recoro of Agency Stocks as at November 30, 1943. PMYC.00000977 ANACQNOA SALES COMPANY EAST CHICAGO. INDIANA GENERAL LEDGER TRIAL BALANCE - NOVEMBER 30, 1943 White Lead Purchased White Lead Sales White Leao-ih-Oil Purchased White Leao-ih-Oil Sales Zinc Oxide Purchased Zinc Ox ice Sales Ne* York Office Customers Leoser Or. Cr. $ 133,175.93 $ 133,175.93 84,249.4-7 84,249.47 143,002.91 143,002.91 38,869.39 38,869.39 _____________ $ 399,297.70 $ 399,297.70 t < Dl.iV/*