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Audit - 1955 THE FREE; PUBLIC LIBRA~Y CJr THE CITY OT;' 8ALmA 8al ina " KanGas REPOOT ON EXAMINATION December 31,1955 KENNEDY AND COE Certified Public Accountants Salina - Kansas ! THE FREE PUBLIC LIBR<\RY OF THE CITY OF SALINA Salina, Kansas LIBRl\.RIAN Jerome Cushman OFFICERS Rudolph Barta. . . , . . . . . . . . . . . . . . . . . . . . . . President Mrs. V. C. Webb. . . . . . . . ...... . . .Vice-President Henry 6:berhardt . . . . . . . . . . . . . . . . . . . . . . . . . Treasurer Herschel Logan. . . . . . . . . . ...... . . . . Secretary BOAfill OF DIRZC~OP3 Rudolph Barta C. N. Hoffman, Jr. Miss Irene Bjuratrom Herschel Logan Mrs. J. J. Donelan )Irs. V. C. Webb Rev. James S. Elliott Ralph F - Exline t' EXHIBIT !tAft Schedule 1 Schedule 2 THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas INDEX COMMENTS......................... STATEMENT OF RECEIPI'S, DISBURSEMENTS, AND BALANCES OF CASH - G~~L FUND . . . - . . . . . . . . . . . Treasurer' 6 Cash Balance ........... Treasurer' 6 Unencumberei Cash Balance - General :¡¡'und ;rm¿~ Page Number 1 to 4 5 6 7 -------_u_---.-------- May 19, 1956 To the Board of' D:! recto:n3.. Tbe Free Public: Library of the City of Salina, Salina, Kansas. C'.entlemen: We have examined the financial books and reC'oI"'ls of' The Free PublÜ:: Library o:f the City of Salina, Salina, Kansas, for the: period January 1 to December 31, 1955, inclusive. The report of such examination 1s herewith submitted. SCOPE OF EXAMINATION The examination was perfor~d in accordance with the requirements of the Minimum Standard Audit Program approved by the State Municipal Accounting Board, RECEIPTS DISBURSEMENTS, AND BAlANCES OF CASH The General Fund includes all of the receipts and disbursements of The Free Public Library of' the City of Salina, B..'1d a summa.:r7 of these transaction::> is shown under Exhibi t "A". The library tree.surer received a total of $45,499.50 in approprlations from the City of Salina during the year 1955. This amount was verified by the city clerk. Fines are assessed for failure to return books ",1. thin the tirœ limit and for damage to and 10s6 of books. Membership fees are collected from non-re'sldents. These collections are orninarily in very small amounts and receipts are not issued f'or each collection. The fine and membership receipts of $1,481.83 loI'ere remitted by the librarian to the library treasurer except for $9.00 which -was on hand December 31, 1955. Remittances by the librarian were made five times during the year, In our previous reports we recommended that these receipts be remitted within five days of the end of the month in which the collections were ma.de. Checks cleared. during the pericd were test checked as to date, payee, payee endorse- ment signature, and bank cancellation. Pre-numbered warrant check foI'J:J:1s used during the year were account.ed for, except that a number of voided check forms were not available for inspection. Claim vouchers paid during the period were test checked with invoices and with the amounts of the warrant checks issued in payment thereof as l'ecorded in the ----- ---_u-- ---..--.--- -----...-..- - _._~_.-- -- - --.---- --------. . -- {- warrant register - All vouchers -were examined for legality and pr-opriety of ex- penditure. It was noted that. several of the YOucherö were not sj~gned or approved. TREASURER'S CASH BALANCE The treasurer's bank and cash balances at December 31, 1955, are shown under S~hedule 1. The bank balances -were reconciled to balances eonfir.rned by the banks I and the cash on hand was counted. The treasurer nainta1ned no record of disbursements as is required undex: G. S. 1955, SuPP. 12-1226. COMPLIANCE WITH CASH BASIS M'D BUDGET LAWS Under the provisions of the Cash Basis Law (G. s. 1949, 10-1101 to 1122) it is unlawful to make payment out of or to create an indebtedness aga.1nst any fund in excess of money actually on hand in the treasury to the credit of the fund. Be- cause of the inadequacy of tr-.e records it was impractical to determine compliance with the Cash Basis Law during the year, however, an examination of the bank statements sho-wed that the bank account was overd.rawn during the period August 31 to September 5, 1955. Under the provisions of the Budget Law (G. s. 1949, 79-2935 to 2937) it is unlaw- ful to ma.ke payment out of or to create an indebtedr.ess against any fund in exce 3'} of' the amount provided for that fund by the annual budget. The following statement shows a comparison of' actual revenue, exl;>enditurea, and balances with those anticipated by the budget: Janua Amount (Over) Per or Under Actual Budget Budget $ 2,193.92 4; 1,335. ~;o ($858.42) 45,499.50 45,499 .~'O _1, 481.8¿ l,500.CQ 18.1 I $49,175.25 $48,335.00 ($840.25) 48,251.~2 48,335 .()(~ 8:> f f\ '.) . c~'- "'dJ'!3a.lanceDecember 31 1 5 = (~) ";I¿'Í,~j;\- <,,",shows, that there vas compliance with the Budget Law. . ~~~~:i~::;'-:;"':! i 923.~ ! The following statement shows the computation of the expenditures of th~ General Fund for the year 1955: Cash Disbursements for the Year 1955 $47,875.30 Deduct - Indebtedness December 31, 1954, included in 1955 cash disbursements ----------- Add - Indebtedness created during 1955 but not paid before December 31, 1955 $47,814.95 I,? ('... -) 7 ----':':£,;..:2...¡,. Expend1 tures for Year 1955 ~48, 251.32 The amount of the indebtedne38 created during the year 1955,' which was unpaid December 31, 1955, was determined by examination of claim vouchers paid during the months of January and Februazry, 1956, and a commitment dated December 31, 1955, which is to be paid when services are rendered. TREASURER'S UNENCUMBERED CASH BALANCE Schedule 2 shows the computation of the treasurer's 1l..11encumbered cash ball"...nce at December 31, 1955. INSURANCE AND FIDELITY BONDS fl,. summary of insurance and fidelity bond. coverage December 31, 1955;, is as ioJ ';j, : Property Insured Building Building contents Museum contents Boiler Coverage Amount Fire and extended coverage* Fire and supplemental coverage* Fire and supplemental coverage Boiler explosion $76,500.00 40,000.00 2,000.00 5,000.00 Fidel! ty Bond Henry R. Eberhardt 4,000.00 * &:Jr.þ co- insurance A bond tor the treasurer in the amount Specified by the library board is reqUired under the provisions of G. S. 1955, Supp. 12-1226, such bond. to be approved by the Board of City Commissioners. The minutes of' the library boom dated June 30, 1942, authorized. a bond in the amount of $4,000.00 which is the amount of the bond previously posted by the treasurer. The treasurer's bond was approved by the Board of City COmmissioners on June 28, 1943. 3. The fidelity bond of the tl»asurer """ rene""<l by a continuation Certii'icate ÍGsu< ~ tœ 3U~~ c~~. ~e effect of t~ Cooti~ti= certHicate is to exœ¡ the period to which the amount of' the bond is appli cable and does not pray!, $4,000.00 of <'ove rage ror esoh term. " bond is reqUired by atotute and it j apparently intended t~,t n "'ramte coverage of the full amount be provided fc eli" h t~rm, and we a,." of tbe opi n 1 all eta t Chi 3 re q u1 re""n t C,",not be sa tl sHied b a COtltinuät:Lon certificate. GENERi\L The pur"hase order and claim voucher system in uae hy tl>, lihrary does not mee, the requirements of such systems prescribed for Use bj' Kansas Municipal it ie, because no ",com is ""'lnt"iood to shew the e"'8ti"" o~ indebtedness. We recc-"nè that a control OVer the outstandi"8 indehtedness of the library be establisbed- The minute. of the meetings of the board of direotors were ex"'lned for matters pertaining to the audit. CERTIFICATE In our op ini on, g ub j e c t to the fore go ing cOtnlUe n t., the a c company, ng e xhib í t and related schedules properly present the ca.sh POSition of The Free Public Libra", of the City of Salina as of December 31, 1955, and the finane1al transactions for the period January 1 to December 31, 1955. Respectfully sWJmitted, KENNEDY AND COE J ~~1rz~-P.A. Licensed Mun16i~Ll Public Accountant in charge Of and act! vely engaged on this aUdit. THE FREE PUBLIC LIBRARY OF THE CITY Or" S' n, , Salina, Kansas STATEMENT OF RECE IPI'S. DISBURSEMENTS, AND BALANCES OF CASH - GENERAL FUND Januar.f 1 to December 31, 1955 Treasurer's Cash Balance January 1,1955 Receipts Appropriations ~rom the City o~ Salina Fines and memberships Total Disbursements Salaries and wages Librarian Cataloger Children 's librarian Reference librarian Circulation librarian Curator emeritus Curator assistant Custodian Bookkeeper Treasurer Student assistants Books Periodicals Binding Records and pictures Heat, lights, and water Telephone Building and equipment maintenance Furniture and fixtures Office and library supplies Jani tor supplies Museum expense Traveling expense Memberships and dues Auditing Social security tàx Insurance Post office box rent Bank deposit box rent Misce lle.neoua Total Treasurer's Cash Balance December 31, 1955 $4,800.00 1,200.00 2,599.20 3,000.00 3,000.00 600.00 766.50 3,000.00 120.00 50.00 7,190.06 $45,499.50 1,481.83 $26,325.76 9 ,52!r. 38 2,744.79 1,031.01 1,113.82 312.85 1,047.93 933.33 995.17 105.58 148,.54 773 'I 56 167..50 220..00 475.'7() 24.00 3.30 550.04 Exhibit "A" $ 2,254.27 46,981.33 $49,235.60 47,875.30 ~II r -~---.~_I THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas TREASURER'S CASH BALANCE December 31, 1955 Cash in Bank National Bank of America, Salina., Kansas Farmers National Bank, Salina, Kansas Planters State Bank, Salina, Kansas $976.12 375.18 C ash on Hand Library change fund Treasurer's Cash Balance December 31,1955 . --------- -.- Schedule 1 $1,351.30 9.00 ~~?2 b.~ THE FREE PUBLIC LIBRARY OF THE CITY OF SALmA Salina, Kansas TREASURER'S UNENCUMBERED CASH BAlANCE - GENERAL FUND December 31, 1955 Treasurer's Cash Balance December 31,1955 Deduct - Outstanding indebtedness unpaid at December 31,1955 Unencumbered Cash Balance December 31,1955 '. . $1,360.30 ~ . > L-.9.2~