=Auditing Department.=--This department, working under the supervision of the Auditor, handles all claims against the Commission, verifies each one, prepares the vouchers to cover, sends them out to claimants to be certified, and mails out the warrants when received from the Secretary of State. All vouchers drawn from the counties for co-operative work or projects over which the Commission has supervision, are also audited in this department. In 1917 there were 1,782 State vouchers passed, aggregating a total of $682,321.98; in 1918, 3,371 were passed, aggregating $2,205,935.70. In 1917 there were 544 County vouchers totaling $270,162.37, and in 1918, 410 vouchers totaling $439,562.79. A total of all such vouchers for the biennium aggregating $3,597,982.84. Employes of the Commission are paid by payroll warrants drawn in favor of the State Highway Engineer and bank checks issued against the same. The total number of paychecks issued in 1917 was 2,771, and in 1918 there was a total of 7,350. It will be noted that in the past two years the Commission has done considerable work by day labor and the above statement includes all direct employes. It is desirable to expedite payment of labor claims, especially to men who quit on short notice. The present law requires that claims be prepared in voucher form, approved by the Commission for payment and then sent to the Secretary of State for audit. The warrant when received is deposited in a bank and a paycheck issued. It is recommended that a revolving payroll fund be created on which pay checks could be drawn and sent out immediately as requested. These could later be listed and the payroll voucher prepared in the usual manner in favor of the State Highway Engineer. The warrant when received, to be refunded to the payroll fund which would be kept intact. The State Highway Engineer should furnish a payroll bond to cover. This fund could also be used for emergency claims to take advantage of trade discounts and permit the payment of small claims which it is desired to pay promptly. In the numerous cases in which the Commission has taken over the work to do with its own forces, the necessary bookkeeping and detail records for handling material, supplies and labor payrolls have been carried by this office. On several force account jobs each invoice and payroll of the contractor has been carefully checked and verified before being paid. The record of both State and County funds have been audited by reputable certified public accountants and found correct. Mr. G. Ed Ross served in the capacity of Auditor until his resignation in July, 1918, when his duties were taken over by Roy A. Klein, Assistant Engineer. * * * * *