Accounting Historians Notebook

Volume 2 Number 1 Spring 1979 Article 1

Spring 1979

Accounting in an English medieval abbey

George F. Malecek

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Recommended Citation Malecek, George F. (1979) "Accounting in an English medieval abbey," Accounting Historians Notebook: Vol. 2 : No. 1 , Article 1. Available at: https://egrove.olemiss.edu/aah_notebook/vol2/iss1/1

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ACCOUNTING IN AN ENGLISH MEDIEVAL ABBEY By Brother George F. Malecek St. Mary's University We often tend to think of ourselves as expropriated by the crown, taken from discoverers, as innovators, as inventors. monks and clergy who had fallen from Yet, occasionally, our admiration of our the king's good favor, and given to newly achievements is tempered, when we be­ created nobles, so in an earlier era, lands come aware of the truth, or at least, a and properties belonging to nobles who partial truth, in the adage of the ancient had fallen into disfavor with the king sage that "There is nothing new under the were confiscated and frequently donated sun." to churchmen—bishops and abbots, for For example, we may admire our abil­ example—as benefices or endowments, ity to develop an accounting system and, probably, with the hope and expec­ which will bring together a multiplicity of tation that the churchmen would remem­ complex transactions and, our additional ber to pray for the soul of the generous donor. ability to reduce this complexity to a se­ ries of relatively simple financial reports. These properties were often at some However, a study of accounting history distance from the central abbey—at times reveals surprising sophistication in the in excess of one hundred miles, a consid­ methods of our forebears. erable distance in the thirteenth century—and in a variety of conditions. To illustrate this thesis, let us consider Thus, in one instance, a manor, complete the accounting problems for an abbey, a with residential buildings, granaries, monastery, one of the prominent social shops, herds, and surrounding lands might institutions of the middle ages, a center be bestowed on the abbey. Or cleared for many activities: religious, social, cul­ land without any man-made structures tural and economic. More specifically, let might be donated. At still another time, us center on the activities of a relatively forest land could be given as a gift. The large abbey near the coast of southern land, however acquired, was used for England, Beaulieu Abbey in the year crops, stock-raising, forestry or simply 1269. The activities of this abbey would rented. not seem strange to some of our modern rancher-oilman-financier entrepreneurs of Monks from monasteries and abbeys South Texas. The modern rancher-farmer situated close to the sea brought in fish to may have, in addition to his agricultural provide variety in their regular diet or the activities, some oil and/or gas interests, diet prescribed by religious canons. Here, some financial interest in the local bank, again, the almost incidental fishing might etc. Most of these activities, and more expand into a fishing fleet, a fishing in­ were familiar to the monks governing a dustry. large medieval abbey. While the monastery might flourish and increase its worldly goods, it did not An abbey—as a place where men usually or as readily acquire an adequate sought to isolate themselves and give supply of low cost labor in the form of praise to God by work and prayer— volunteers—monk-recruits—seeking the usually started out simply enough. A spiritual goods of another world. Thus, small band of monks with vows of pover­ the monastery administrators had to hire ty, celibacy, and obedience, given a tract labor—permanent as well as seasonal—and of apparently useless land, drained and being forced to deal with workers not un­ cleared the land, erected a church, their der the vow of obedience, found them­ living quarters, a variety of workshops selves faced with the labor problems of and barns, cultivated the land, and any modern manager: payrolls, fringe- prayed. With the passage of time, by dint benefits, work slowdowns and even of hard work by the monks, by the grace strikes. of God, and frequently by the grace of One of the ideals of the monastery was kings and nobles, as well, the abbey could that it be self-sustaining to as great an ex­ prosper and grow. Just as in the sixteenth century, many lands and properties were tent as possible. Thus, it had its own (Continued on Page 5) Published by eGrove, 1979 1 Malecek (continued) Accounting Historians Notebook,Nativit Vol. 2y [1979],of St No.. Joh 1,n Art. th 1e Baptist (late farms, its own herds, its own craftsmen: June) and an annual report at Michael­ fullers, millers, brewers, bakers, carpen­ mas, September 29. Rule 2 specified ac­ ters, blacksmiths, masons, etc. An abbey counting for receivables and payables, a might operate stores where it sold some primitive accrual basis accounting, in ef­ of its produce (grain, flour, and wool), fect. Other rules, inasmuch as they speci­ but some produce was taken to market fied which monies could be spent or not towns. Such products as were needed, or spent, required the creation of what we desired, but which were unavailable local­ would now refer to as expendable and ly— spices, iron, salt, for example—were non-expendable funds. brought to the monastery from the Some of the rules referred more to fi­ towns. These trips to market required a nancing problems than to accounting transportation system: horses, wagons, problems. Rule 4, for example, required carts, drivers. Further, transportation was that if a department manager had in­ necessary to deliver bread, beer, grain or curred expenditures in excess of receipts flour, meat and other products to monks during the fiscal period, then the excess and workers living miles distant from the of expenditures had to be paid before central abbey and to bring some of the new expenditures for assets or expenses produce to the central abbey which could be made. served as a kind of entrepot. Rule 5 stated: "Certain prices that the The abbey, being a center of civiliza­ officials are to use are reckoned in the ta­ tion in an otherwise wilderness area, be­ bles." The tables might be considered as came the guest center, the inn, the cara­ analogous to standard cost sheets but vansary, whatever you will, for many without provision for analysis of vari­ travelers, or at times simply a place for a ances: one gave the prices to be used for religious retreat for the nobility, traveling inventory and other asset valuation, the hierarchy, or others. other was a listing of the amount of wa­ Thus, the abbey, with all of its local ges to be paid for differing types of labor. and distant departmental operations, en­ A carcass from a cow or a bull was to gaged in farming, stock-raising, land-rent­ be reckoned as valued at six shillings, ing, forestry, milling, selling, buying, while a calf's carcass was valued at only manufacturing, taxing, tithing, establish­ two shillings. Lambskins and sheepskins ing fairs, transportation, hotel-keeping were valued at a penny. and, at times, financing select clients. The In the listing of values for certain com­ treasurers and administrators were faced modities, we detect a class, or social, with a complexity of activities which structure at odds with the expected ideal would make even a modern day CPA of egalitarianism that "all men are broth­ shudder and wince. Had the abbey been ers." For we find differing prices for vari­ subject to taxation, it would have re­ ous grades of bread and beer. The highest quired a staff of tax accountants to as­ quality beer, reserved for the religious at suage the probable implacable demands the monastery, and visiting dignitaries, of a 13th century IRS. perhaps reflecting a philosophy that the How did the monk-managers control best is none too good for the Brothers all these conglomerate, or perhaps home- and Fathers, was valued at 16 shillings a office and branch, operations? Through tun. Beer for the working Brothers and an information system, which however others on the farm was only worth 10 primitive, however dictational, must nev­ shillings a tun, while beer for the hired ertheless be admired. Beaulieu Abbey in help (part of their fringe-benefits) and or­ southern England, according to its ac­ dinary guests, was valued at only six shil­ count book, received reports from about lings and nine pence. 80 distinct departments. The Brother, or In brief, salt, grains of various kinds, Father, Treasurer of the Abbey provided spices, hides, iron, wax, breads (4 grades) the functionaries, branch or factory and a large assortment of other products managers, in charge of each of these 80 each had a specified value. departments with a set of twelve rules, or The Abbey Treasurer also served, uni­ guidelines (the monastic equivalent of laterally, as the chairman of the manage­ generally accepted accounting principles, ment-labor group and provided depart­ GAAP). The rules dictated the frequency ments with a wage-scale dictating the and the content of the reports, the man­ amount of wages to be paid for specified ner of valuation and measurement of in­ jobs: herder, harvester, carpenter, brewer, ventories, and the basic format of the and so on. reports. While the reports themselves were Rule 1 required quarterly reports: at structured, they were basically written re- Christmas, at Easter, on the feast of the (Continued on Page 6) https://egrove.olemiss.edu/aah_notebook/vol2/iss1/1 2 The Notebook, Spring 1979 5 Malecek (continued) clergy, hierarchy and other social digni­ ports and gave amplMalecek:e opportunit Accountingy to th ein an Englishtaries. medieval abbey managers to express themselves. Each re­ All departmental reports, varying as to port had two basic divisions: one for re­ quantity of detail, were sent to the abbey porting money and money changes, one where the treasurer, or his surrogate, to­ for reporting quantities and changes in taled the reports. Evidently the clerks in quantities of assets: inventories, build­ the sundry departments were not all ings, herds, and other assets. Shades of equally well versed in arithmetic for their funds flow! totals do not always equal the sum of the The length of the reports varied. Some parts. The status of the abbey and its op­ department managers were the soul of erations were reported to its "general brevity and their reports fill a page or chapter" (a body somewhat analogous to two; others labored over their explana­ a board of directors in today's corpora­ tions and filled page after page. tion) by the Abbey council (a group anal­ The basic structure of the cash report ogous to our present-day executive com­ was this: the cash balance at the start of mittee). the period, a report of receipts, a report To sum up: the concepts of funds of expenditures and the balance on hand flow, accrual basis accounting, depart­ at the end of the period. Inasmuch as re­ mental operations, standard costs, a set of ceivables and payables were also reported, accounts, a uniform system, generally dic­ we see a rudimentary cash-accrual basis tated (if not necessarily accepted) ac­ accounting. Revenues which had to be re­ counting principles, branch operation, ported by source were, in reality, usually even a crude double-entry system—all receipts from all sources: from sales of these existed, at least germinally, 700 the departments, from gifts, and from years ago. other sources. If you are gifted with patience, read "Expenses," expenditures really, were The Account Book of Beaulieu Abbey divided into several categories: necessary published by the Royal Historical Socie­ and unnecessary. Primary operational ty, London. It's tedious and difficult, costs of the department were the expend­ written as it is in a colloquial Latin, an itures usually listed under "necessary" ex­ admixture of classical Latin, latinized An­ penses, although we find that some capi­ glo-Saxon and Old French. tal costs—construction of new, or expan­ Even a rough translation of the book, sion of old, buildings, barns, and dams- however, exudes a charm and yields, as are also listed under expenditures. well, a touch of humor. A second category of expenses, unnec­ (Editor's Note: This paper was presented at the essary expenses, contains many items Southwestern Regional Meeting in Houston but which we would call "overhead" today. was not included in the Proceedings.) In this latter category we find the monks PROFILE - FOOTNOTES reporting some odd items which reflect, 1 again, the social and cultural life of the This and many other facts contained herein times as well as some of the personal feel­ were obtained from an obituary to Major Je­ ings of the monks. For instance, several rome Lee Nicholson, The Pace Student X, No. 2. (January 1925): 27-8. monks reported as unnecessary expense 2 the amounts paid to the abbot to help J. Lee Nicholson in his opening address to a him defray his travel costs when he made conference in Buffalo, in 1919, that he called his occasional visits. The attitude of those for the purpose of considering the feasibility of monks differs little from many twentieth organizing an independent association of cost accountants. century religious who feel that too much 3 money and time is wasted on travel by As quoted in: Sowell, Ellis Mast, The Evo­ the latter-day counterparts of the thir­ lution of the Theories and Techniques of Stand­ teenth century abbot. One monk report­ ard Costs (University: The University of Alaba­ ed as unnecessary what appears to have ma Press, 1973), p. 74. "Review of J. Lee Ni­ been a bribe paid to an ecclesiastical cholson's Factory Organization and Costs," The Journal of Accountancy ,VIII (July 1909): 222. court, feeling perhaps, that the monks 4 should have had a greater spirit of faith, a Chatfield, Michael, A History of Account­ greater trust in God, to pray rather than ing Thought, Rev. ed., (N.Y.: Robert E. Krieger pay for a favorable decision. Publ. Co., 1977): 168. 5Major Jerome Lee Nicholson, The Pace Stu­ Other items listed as unnecessary were dent. the cost of feeding Lady Eleanor's dogs 6National Association of Cost Accountants, (Eleanor of Castile who became the Yearbook 1920, (N.Y.: J. J. Little and Ives Co., Queen of Edward III), entertainment of 1921): 6. the king and/or members of the king's 7Major Jerome Lee Nicholson, The Pace Stu­ court, hospitality extended to peripatetic dent. Published by eGrove, 1979 3 The Notebook, Spring 1979 6