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Los A n geles, August 25, 1943 20-334-1 Each year we are req u ired to fu rn ish the A u d itor a statement o f w ater produced at Las Vegas, Nevada, in clu d in g the g a llo n s o f w ater produced, the amount used by the R ailro ad Company, the amount so ld the Las Vegas Land & Water Company, t h e amount so ld to others and the amount going to the ranch. A ls o , the cost o f m aintaining watel* d i s t r i c t system and the in creased valu atio n in w ater f a c i l i t i e s . This check has been made a f t e r the clo se o f the year, and due to incomplete records being maintained to p ro p e rly id e n t ify the charges f o r maintenance and to determine the accurate amount o f water produced and d is t r ib u t e d , our fig u r e s have been questioned. I am now in re c e ip t o f a l e t t e r from the Auditor in d ic a tin g that e ffe c t iv e at once a l l concerned should be in stru c te d that whenever any expenses are Incurred in connection w ith m aintaining, renewing, and re p a irin g the jo in t ly used w ater s ta tio n f a c i l i t i e s , that a comprehensive d e s c rip tio n o f the work performed should be stated on a l l source documents, la b o r d is t r ib u t io n s , m aterial r e q u is it io n s , e tc . to enable p ro p e r accounting and c o rre c t cost statement being made th e re o f. Monthly re p o rts covering a l l expenditures in cu rred in connection w ith th is f a c i l i t y w i l l be compiled in the A u d itor*s o f f i c e h e re a fte r, and forwarded to me f o r a p p ro va l. These re p o rts w i l l form the b a sis f o r determ ining the amount to be b i l l e d the Las Vegas Land & Water Company at the f i r s t o f each y ear fo r the ensuing y ear, and the A u d ito r in stru c ts th at the statement should th e re fo re be c a r e fu lly reviewed and where the statement does not agree with the p h y sic a l performance o f the work done, the A u d ito r*s atten tio n should be c a lle d th ereto g iv in g s p e c ific referen ce to source documents, jo b s , e tc . coverin g items to be Included or excluded therefrom . Inasmuch as your department in c u r s .. expense in connection w ith the Laa Vegas water f a c i l i t i e s assume you w i l l issu e in stru c tio n s to a l l concerned to p ro p e rly d escrib e the work performed or expense Incurred on la b o r d is t r ib u t io n s , m aterial r e q u is it io n s , e tc . to enable the A u d itor to p ro p e rly id e n t ify same fo r in c lu s io n in h is monthly statement. In th is connection he c a l l s a tte n tio n to statement which we fu rn ish ed him February 8 , 1943, showing the number o f g a llo n s o f water fu rn ish ed the UPRR Co. and LVL&W Co, se p arate ly by months fo r the year 1942 as fo llo w s : W .H .J . 27 1943