Proceedings of the Board of Regents (1939-1942)

716

OCTOBER MEETING, 1941

and supporting documents, made test checks of income and expenditures, and
made a general review of the accounting methods, but we did not make a detailed
audit of all transactions.
We have compared the data printed in the following financial report with the
records of the University. Consistent with prior years, the accounts have been
maintained on the basis of cash receipts and disbursements, with adjustment made
at the close of each year to reflect the accounts receivable on the balance sheet.
In our opinion, the accompanying balance sheet and schedules relating thereto
correctly set forth the financial position of the University of Michigan as at June
30, 1941, and its operations for the year ended that date.
Miller, Bailey and Company
Certified Public Accountants
Detroit, Michigan
September 24, 1941
The following statements were placed in the record on behalf and
by authority of the Chairman of the Finance Committee:
We have examined the report of the audit of the books and accounts of the
University for the year ended June 30, 1941, made by Miller, Bailey and Company, certified public accountants, and submit to the Regents the following matters
of general information relating thereto:
In addition to the general statement made in the auditors' certificate, their
report includes the following: All cash balances were verified, cash on hand was
counted and bank balances were confirmed by correspondence with the depositories.
Securities owned by the University as endowment fund investments or temporary
investments of excess cash balances in other funds, were verified, for the most
part by actual inspection of the securities and in other instances by communication with the outside agents by whom they are held. Deeds to real estate acquired
by the University during the year were examined, and the "Report of Investments
of Trust Funds and Deposit Accounts" was completely checked as to amount
and description of the securities and other assets detailed therein. The market
values as of June 30, 1941, were test checked by the auditors and the book values
of bonds, preferred stocks, and common stocks, was $11,735,947.48; market values,
$12,171,923.08.
Notes receivable, representing student loans, were examined and checked
against the detailed schedules, and test checks were made as to cash payments
credited to the notes during the year. Detailed ledgers of accounts receivable were
examined and the totals thereof were found to be in agreement with the amounts
reflected in the balance sheet. Inventories were test checked as to price and
clerical accuracy.
During the year the following reductions were made in revenue bonds outstanding:
Consolidated Dormitory Revenue Bonds.......... $389,000.00
Health Service Notes......................... 8,000.00
Michigan Union Revenue Bonds................ 65,000.00
Total................................... $462,000.00
General receipts of the University were test checked and similar verification
was made of income from securities and other assets. Disbursements of general
and trust funds were tested for approval, support and classification, and no
irregularities were reported by the auditors.
The reports of the auditors were accepted and placed on file and
the annual Financial Report of the Vice-President and Secretary for
the year ended June 30, 1941, as filed by him and as covered by the
above recorded audit was accepted and adopted by the Regents as
the report of the Board to the Governor of the State. The usual number of copies was ordered printed (p. 454).
The report of the auditors, including report on the Michigan
Union which has not yet been actually placed in the hands of the
Regents, serves as a basis of the tabulation of results for the Michigan
Union, the Michigan League, and the residence halls, appearing on
page 717 (p. 455).