The account is then placed on file until its proper turn for examination shall have arrived, when it is delivered to the examining clerk. Each voucher is then carefully examined under the orders and regulations in force at the time the expenditure was made; and where any expenditure was made not in accordance with regulations, such fact is noted and placed upon the list of exceptions taken to the account.

In order to ascertain the precise amount paid out on account of the different items chargeable to this fund, and analysis of each account is made by the examining clerk. In order to keep a correct record of this,and also to show exactly how each officer's account stands for each month, a book, known as "Volunteer Service Expenditure," is kept, headed as follows.*

So that a correct record might be kept of each account, from the time it is received at this office until it is sent to the Second Auditor, it was found necessary to open a book known as "Record of Accounts of Disbursing Officers, Volunteer Service," head as follows:*

The property return of each disbursing officer, accounting for all property received and expended during the month, is also examined at the same time and then filed with the account.

When the exceptions taken to the account are completed and copied into the Exception Book, they are filed with the account, officially acknowledged, and the account is then referred to the Second Auditor of the Treasury for final settlement.

A copy of the exceptions taken is also sent to the disbursing officer, and in case he make explanations to the exceptions, they are forwarded to the Second Auditor of the Treasury.

The number of monthly and quarterly accounts received at

the office pertaining to this appropriation to

January 1, 1866, is........................................ 2,535

Number examined to May 1, 1863........................ 144

Number examined from May 1, 1863, to January 1, 1866...1,801

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Total number examined and sent to Treasury to

January 1, 1866............................................ 1,945

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Total number remaining in office January 1, 1866........... 590

APPROPRIATION FOR PAY OF BOUNTY.

The total amount appropriated by Congress for the pay of advance bounty to volunteers since the commencement of the war is as follows:

Fiscal year ending June 30, 1863.................... $7,500,000.00

Fiscal year ending June 30, 1864.................... 5,000,000.00

Amount appropriated December 23, 1863, to supply

deficiencies in previous appropriations............ 20,000,000.00

Fiscal year ending June 30, 1865.................... 5,000,000.00

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Total amount appropriated.......................... 37,500,000.00

Balance remaining in Treasury January 1, 1866....... 11,296,018.82

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Total amount expended.............................. 26,203,981.18

All funds belonging to this appropriation in the hands of disbursing officers July 1, 1865, when the payment of bounties ceased, were promptly covered into the U. S. Treasury, as directed by you.

In order to keep a correct record of all requisitions drawn upon the Secretary of War from this appropriation a book, known as "Regiments of Requisitions for Bounties," was opened, headed as follows:*

It was also found necessary to open an account with each officer

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*Forms omitted.

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