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Audit - 1941 ---- -- ---- - -- ---- - -- -- -- --- -- ------- IL___- ----------------------------- -- ------ -_un ----- - - n__- - ---~-~- THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA, KANSAS Salina, Kansas FINANCIAL REPORT Covering the Period From January 1, to Deoember 31, 1941, Inolusive M. J. UD'EDY Cert11'1ed Publio Accountant Salina - Kanl... -- -_u_---- ----- THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA, KANSAS Salina, Kansas OFFICERS C. F. Pre'Gott . . . . . . . . . . . . . . . Presl,deD:t Mr 8. H. N. ),(0 se s . . . . . . . . . . . Vloe-Presilient Henry H. Eberhardt. . . . . . . . . . . . . Treasurer Fred Stevenson. . . . . . . . . . . . . . . Sec,ra'tary Mrs. Delia Brown. . . . . . Assistant Secretary BOARD OF DIRECTORS Mrs. J. R. Gaia Ed Morgenstern Frank Hageman Mrs. H. N. Moses Carl Prescott Fred Steve:1160n Mr.. Ruth Lynoh Earl C. Wood'lIrard )fra. J. Earl Wyatt I j, I Ii II II I I :¡ :1 - Ii Ii II II I -~~-~-~~=~~~-- ------~= --~--~~- -------~ EXHIBIT "A" Sohedulel EXHIBIT ItB" - ~---------~--- - - - ------ - - --- ---- -------- THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA, KANSAS Salina., Kansas INDEX COMMENTS. . . . . . . . . . . . . . . . . . . . . . . . . STATEMENT OF RECEIPTS, DISBURSIDÆNTS AND BAUû~CES OF CASH - GENERAL FUND . . . . . . . . . . . . . . . . . . . . . . Cash in Custody of Treasurer. . . . . . . . . . . . . . . STATEMENT OF RECEIPTS, DISBURSEMENTS AND BALANCES OF CASH AND INVESTMENTS - BARTLETT FUND. . . . . . . . . . . . 'i I, 'I II I______-~~~~- ~~~ ---~~---~-~~ --~~- INDEX --- - --------- -------------- - Page No. 1 to 5 6 7 8 I II Ii II :1 I: I II ,I -I 'I M. J. KENNEDY Certified Public Accountant . . SALINA, KANSAS J4ay 20. 1942 1'0 the Board of Direotors. The Free Publio Library of the City ot Sa.l1na. Sa.line.. Kansas. Gent 1 anen I In a.ooordance with your instructions, an audit has been made of the financial books and. records of The Free Public Libra.ry of the City of Sa.1ina. Kansas. oovering the period frcml Janua.ry 1, to Deoember 31, 1941, 1noludve. The report of such a.udit is herewith submitted. Copies of this report ha.'re been submitted to the governing body of' the City of Salina.. SCOPE OF AUDIT The a.udl t was performed in accordance with the general and speoi:rla required pro- visions of the Minimum Standard Audit Program approved by the State Munioipal Aocounting Boa.rd as of November 21, 1935, and as revised OotobeJr 25, 1940. RECEIPTS, DISBURSIDŒNTS AND BAI.ANCES OF CASH AND INVESTMmTS STATEJlENT OF RECEIPTS~ DISBURSEMENTS AND BALANCES OF CASH - GENJrmAL FUND,Exhibit "A". The operating reoelpts and disbursements of the Free P1.1blio Library are cleared through its general fund.Exhibit "A" reflects the receipts and disburse- ments during the audit perlod and the balances as at the begimling and closing dat$s of' that period. The City, of Salina appropriated and paid tothe library board a. tc)talof .1l,6Q~,,00 durihg the year 1941 out of the proceeds of a tax levy ot ~.646-.1118 on cltÿ'ot Salina tangible propeny. During the period under audit theUbrarian reJÚtted to the library treasurer tin.a, membership tees and renta18 :Ln the amount ot t6l8 .06. ' CASH IN OUSTODY OF TREASURER, Schedule 1. under this schedule the General Fund bank balance, as confirmed by the depository. 18 reconciled tC) the treasurer' 8 balance a8 at Deoember ~l, 1941. cash reoei",edduring the ipdit period trom the City ot Salina was "'erified by communication with the city clerk. ÑI1Ounts reoèlved from the librarian were oom- pared with her ..maranda. l. - - --- ---~- ----- - ---_u_------ ---~- - __un Warrant checks issued during the audit period were examined as to number, payee" pa.yee endorsement, signatures, and bank cance1latlon and were '30mpa.red with the secretary' 8 record of warrant checks lssued. '11th one exception, warrant checks bore the signatures of the president, 8ecretary and treasurer. Claim voucher. were test checked for signatures, jura.t and appr()val. Many of the olaim vouchers checked did not bear the s1gna.ture of the olaims.1lt and only a few claim vouchers bore the a.rfidavit of the claimant. None of the salary claim voucher 8 checked were verified by a.ffidavi t. The statutes 10-80:~ G. S. 1935, re- quire that claim vouchers be verified by affidavit of the olaimlmt. Claim vouchers paid during the period were test checked with the amount of the invoice atta.ohed thereto, and all claim vouchers were compared with the amounts of the warrant check. issued in payment thereof. The treasurer maintained no record of dlsbursements as is required under 12-1213 G. 8. 1935. Compliance with Budget and Cash Baals 1&ws. The following statement shows a oom- pariaon of aotua.l receipts, disbursements, md ba.lances with recleipts, di sburse- menta and balances a.s .hown by the budget. Total ÂJD.ount Over or Under Actua.l Per i3udget~ Budget t 972.97 t 28.21. $ 944.76 11,501.00 11,501.79 .79 618.06 500 .00 118.06 $13,092.03 $l2,030.00 $1,062.03 12,912.47 12,030.00 942.47 $ 119.56 $ $ 119.56 11.70 11.10 . 10l.86 . . 101.-86 Balanoe - January 1, 1941 Reoeipts From Taxation Other Reoeipts Cash Disbursements Cash Balance December 31, 1941 Indebtedness created but not paid prior to Deoember 31, 1941 Unencumbered Fund Balmoe - Dec..ber 31, 1941 Under the provisions of the oa.sh ba..is 1a.w (10-1101 to 1122 G.B. 1935) lt is un- lawful to make payment of or tooreate an indebtedness against an;y fund in exoess of money aotual1y on hand in the treasury to the orad! t of the f1md. The above statement shows that' the oalh basis la.w was not Tiolated. Under the provisions of the budget law (19-2935 to 2937 G. S. 19;~5) it 1s unla.w- ful to JlUÙCe payment out of or tooreat. an indebtedness against any fund in ex- ceu of the 8.1I1ount provided fcr that fund by the annual budget. The following øtatem.cm.t shows that expendltures were ms.de in exceu of the mn01mt provlded for by the budget. ;1 I ,I II~~~__=~~- -"=~c -~-- 2. ,-"~- , ---~~~~~~~~-- ~- - ---- - -- - ---- ------- Expenditures anticipated in budget $12,030.00 Le88 ~ah Disbursements - Year 1941 Leu - Indebtedness created during --y-.e.r 1940 and pe.1d during year 1941 $12..972.41 118.93 $12,863.64 Add - Indebtedness created yea.r 1941 --¡nd unpaid al at Deoember 31,1941 17.70 Expenditures - Year 1941 12,811.24 Exoess of Expenditures over Budget . 841.24 The amotmt of the indebtedness created during the yea.r 1941 whIch was unpaid as at Deoember 31, 1941, was determined by examination of' claim vouchers paid during January, 1942. STATEl4ENT OF RECEIPTS, DISBURSEMEHTS .AND BALANCES OF CASH .AND J:NVESTMENTS, BART- LETT FUND, Exhibit "Bit. The Butlett Fund consists of the uneJcpended balance of the proceeds of the Estate of Jennie V. Butlett plus interelJt received on the inV'estments of the fund. The receipts of the Ba.rtlett Fund dw~ing the year 1941 consisted of interest on United States Treasury Bonds in the principal amount of $2.000.00. No disbursements were m&.de from this fund during the year 1941. The balance of the Bartlett Fund as at Deoember 31, 1941, oonslsted of both cash ønd investments. Under the above exhibit the Bartlett Fund bank balance as oon- firmed by the depository 18 reconciled to the seoretary' s babnoe of $1,132.36. Safekeeping receipt No. 4444 issued by the National Bank of ænerioa to Earl C. Woodward, Secretary-Treasurer, Publio Library. was inspected b:r the auditors and wri tten confirmation was obtained from the bank as to its cn.1stody of Uni ted states Treasury Bonds in the amount of $2,OOO.OO..represented b:r that safekeeping receipt. Mr. Woodward is no longer an officer of the libra:ry boa.rd and Mr. stevenson is seoreta.ry rather than treasurer. AI a.t Deoember 3l, 1941, the Bartlett Fund Bank Acoount was being carried under the name of Fred stevenson.. Treasurer, Free Public Libruy. RECEIPtS OF LIBRARIAN. Fine. are assessed by the library tor failure to return books within the tiae l1m1.t..membership tees are oo11eoted trom rural subscribers and rentals a.re collected for 'the use of certain books ola.88itied as pay ahelt books. Aocording to her monthly reports, the librarian remitted all 8uoh.~e- ceipts to the library treasurer each month. The collections made at the library are ordinarily in very _all amounts. Reoeipts a.re not issued for each collec- tion, but a record is maintained of tota.l daily collections. The librarian's monthly summaries of daily reports werenot in a.greement withthe amounts remitted I to the library trea8urer. The total remittanoe. during the year were $17.81 in exoel8 of' the amounts collected as shown by the librarian' 8 reports. INSURANCE AND FIDELItY BONDS A summary of insurance and fidelity bond coverage shown below. as at December 31, 1941.. i8- 8~ . --~----- ------ --- --- ~~ --- --------~-- -----------~- -- - - - - -~----~ - - ----- - --- - u_- --~~~---~~=-~---= ___n- -- - - --- --- --- __n_-- Coverage Amount Annual Premi um Propertr Insured Build ng Books and Fixtures Museum Contents Boiler Fire and Supplemental Fire and Supplemental Fire and Supplemental Boiler Explosion $22_500.00- 11,000.00. 2,000.00 5_000.00 $ 58.17 78.15 17.61 16.58 Fidelity Bond Henry H. Eberhardt, Treasurer 4_000.00 20.00 Total 8190.17 - ... 80% Co-insurance A bond for the treasurer in an amount specified by the library board is requlred under the provisions of 12~1211 G.B. 1935- such bond to be a.pprcÞved by the Board of City Commissioners. The minutes of the library board datEtd June 3_1931, authorized a bond in the amount of $10,000.00, however- the bclnd being carried is in the, amount of $4.000.00. The minutes of the board do not reflect an authorba.tion for the deorea.se in the amount of the bond. The treasurer's bond does not bear the approval of the Board of City Commissioners. The fidelity bond of the treasurer was renewed upon its expirat:l.on by a oontinu- ation certificate issued by the Surety Company. The efreat of the continuation certificate 18 to extend the period to which the amount of the bcÞnd is applicable end does not provide the amount of oovera.ge required by statut;e for each term. A bond is required by statute and it is apparently intended that a separate coverage of the full amount be provided for each term and we arn of the opinion that this requirement oazmot be sat1sfied by a continuation certificate. GENERAL The JlÛnutes of the board ofdireotora tor the period under audlt were inspected for matters pertainingto the audit and the minutes appeared to contain an adequate record of the proofutdJ.n¡. of the board. Under the provision. of the .ta.tute l2-l206 G.8. 1935- the board of directors of the library are required. to make an annual report to the gOTerIling body of the oi ty on or before the l5'th day of January of each yeu, stating the aondltion of their truat on the Slat da.y of Deoember ot the year next preoedj.ng. the various "iBiUDS of money reoe1ved from the -Library Fund". and trom. other 8Iouroes. and how .U:ah money. have been expended\and tor 'What purpose.. anet certain other .ta'tl.t:iCI and informa.tion. A report tor the yea.r 1941 was prepared but i.he auditors were advised that i't had not been8ubmitted to the Board or City Comœds8ionere as re- quired by 8tatutes. I' :1 11 Ii ll~~~~~~ I jl ¡i II Ii II I - ;1 II II !I II 'I 4. --- ---- _n- - ---- -~ ~ --~~-~~-~-" -- ----I CERTIFICATE I oertify that, in my opinion, subject to the foregoing oommewcs, the acoompany- ing exhibits and reláted schedule re1feot the financial oond:ltion of the Free Publio Library of the City of Salina, Kansas, as at Deoember 31, 1941, and the result of its operations for the period from January 1, to Deoi!Jll1ber 31, 1941. Reapeottu11y submit'ced, ~¿c:~ " C.P.A. Licensed Munioipal JPublio Aooountant, in charge of and ao"cively engaged on this audit. Ii i: II :1 I II~~~_~_,-~_o_,,-- ','. t 6 ' ::, ..' "H - ---~---- -------~ , , -~~~~---~"~--- - -- ----- ----- - -, ----- ,'-', ,', ~- ---- - -~--~ , -~_o,-~~ 0- --~--~~-----~~~"--- -- - - - - --- ~ - - ---- -------------- - THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA, KABSAS Salina, Kansas Exhibit "A" STATEMENT or IECEIPTS, DISBURSEMENTS AND BALANCES OF CASH - GENERAL FUND From January 1, to Deoember 3l, 1941 Treasurer's Balanoe - January 1, 1941 Reoeipts City of Salina Fines, Memberships, Rentals and Sale. of Books Total Reoeipts Disbursements Salaries and Wages Henry H. Eberhardt, Treasurer Forrest Pettey, Bookkeeper Delia E. Brown, Librarian Allee Miller, As8istant Librarian Kirsten Grothaus, Assistant Librarian Martha Turtle, Assistant Librarian Mildred Ahlstedt, Children's Librarian Louise Yost, Children's Librarian Effie C~pbell, Museum Curator Marjorie Nelson, Repa1r Department L. H. Buehre, Janitor Books Periodioa 1. Binding Off1ee Supplies and Expense Water Eleotrioity Fuel - Heating Maintena.noe of Building and Equipment Libra.ry »aterla.la and Supplies Janitor Materials and Supplies Appropriatlcn to St. Faith's Library Auditing Traveling Expenses In8uranoe and Fidelity Bond Library SUrTey Furniture and Eq~lpment Book raoks, cabinet and desk Fan Light Fixtures Jlisoellaneous Total Disbursements Treasurer's Balanoe - Deoember 31, 1941 " 'i 'I il II II II I=~~o . 972.97 $11,501.00 618.06 12,119.06 $13,092.03 . 60.00 25.00 l,806.00 1,205.00 965.00 598.34 570.00 155'.00 905.00 525.08 922.50 $ 7,725.92 2,682.08 459.02 2.23 243.40 63.00 246 .l6 341.29 342.18 202.51 93.74 24.00 60.00 ~ì9.69 10~ .20 lCIO.OO . 200.00 l1.95 14 .10 232.06 II ll.OO - - 12,972.4'1 II Ii , , 119.66 I 6., ',' 'x" --~~.~..~-~~~ -~~--~ 0 ---~~='~"~---~~--~=~~",~~,-~,-" '--,~=,~ '=~"--_.._----- ~------C--- II iL=. -~-o~- ~~o~~ ~-- --~o~ ~_o._-~--- .-- __n_.- --- THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA, KANSAS Salina, Kansas CASH IN CUSTODY OF TREASURER As at Deoember 31, 1941 Reoonciliatlon of Bank Balanoe - General Fund The National Bank of Amerioa, Salina, Kansas Balanoe per Bank Statement Deoember 31, 1941 Less - Interest on Bonds of Bartlett Fund deposited ~ credit of General Fund on Deoember 15, 1941,in error (Transferred to Bartlett Fund Acoount by bank in April, 1942) Add - Outstanding Deposits --ribrarian'8 Deoember, 1941, receipts deposited January 6, 1942 ~ - Outstanding Checks Check No. Amount Check No. Amount 1894 . 12.50 1917 $ 49.00 1897 80.00 1918 9.00 1898 45 .00 1919 3.81 1900 G6.67 1920 20.00 1901 30.00 1921 56.30 1902 42.50 1922 l6 .92 1903 2.00 1923 2.50 1904 55.00 1924 3.00 1905 9.85 1925 4.66 1906 138.0S 1926 43.64 1907 13.15 1927 6.07 1908 llS.51 1928 7.00 1909 204:.00 1910 4.25 1910 lOl.90 19a1 '1.60 1911 4.60 1932 l4.10 1912 1.20 1933 150.00 1913 18.26 1934 1.26 191" 4.66 1935 2.00 1916 33.10 1936 7.80 1916 4.Ia 1837 6.00 1938 60.00 Total Check. Outstanding Balanoe per Booke December 31, 1941 - -- - -- --- ----- Sohedu1el $1,485.14 31.24 $1,454.50 63.66 $1,518 . 16 1,3GS.60 . 119.56 I: 1 1. ----- -------- ---- --- -- -- _c_- - -.. - -------- - THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA, KANSAS Salina, Kansas STATEMENT OF RECEIPTS, DISBURSEMENTS AND BALANCES OF CASH AND INVESTMENTS - BARTLETT FUND From January 1, to December 31, 1941 - Ba.lanoe Janua.ry 1, 1941 Reoeipts Interelt - United State. Trea.sury Bonds Balance Deoember 31, 1941 Cash in Bank Investments $1,1~2.36 2,000.00 Exhibit "B" $3,069.88 62.48 $3, l32 .36 CASH lJlD INVEST!.cNTS IN CUSTODY OF TREASURER - BARTLETT FUND As a.t Deoember 31, 1941 Cash in Bank Checking Aooount - National Bank of .America, Salina, Kansas Balanoe per Bank statement Deoember 31, 1941 Add - Interest United states Treasury Bonds deposited ~o credit of General Fund on Deoember 15,1941, in error. (Transferred to Bartlett Fund by bank in April, 1942) ~ - Outstanding Checks Balanoe per Treasurer' 8 B.eoord. Investments Unlt.d States Trea.sury Bonda, Dated June 15, 1931 Due June 16, 1949, Interest rate ~ 1/8% per annum, Interest payable June 15 and December 15 Total Cash and Investments in Custody of Treasurer ------- --------- -_c_----- ----- c- _-0- -~c~~.~._~~.~~-~~~--~ - . _.- =-=-~-- $1,101.12 31.24 $1,132.36 .1,132.36 2,000.00 ta,l32.as 8.