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Audit - 1950 r- --~-- -~--~---- -~'""---~~-~~~""~ THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas REPORT ON EXAMINATION December 31,1950 KENNEDY AND CaE ('1........+'; .N o~ PO,,"h';,. A,.n("mnt.Ant~c r- - - u- ---~-~------ --'-~--,---------- --------- - - - -- - ------_u_- -- ---- --- ---------- THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas OFFICERS Miss Grace E. Stewart. . . . . . . . . . . . . . . . .Vice-President George O. P. Seitz. . . . . . . . . . . . . . . . . . . . President Henry H. Eberhardt. . . . . . . . . . . . . . . . . . . . Treasurer Mrs. Ruth Lynch. . . . . . . . . . . . . . . . . . . Secretar'y BOARD OF DIRECTORS Earl C. iVoodwarct George O. P. Seitz Robert F. Burnett Mrs. H. N. Moses Mr's. Ruth Ivrnch Miss Helen M. Carlin Miss Grace E. Stewart Rev. RobE!rt F. Steiger Richard W. King EXHIBIT "A" Schedule 1 EXHIBIT "BII r- THE FREE PUBLIC LIBRARY OF THE CITY OF SAIJINA Salina, Kansas INDEX COMMENTS. . . . . . . . . . . . . . . . . . . . . . . . . STATEMENT OF RECEIPTS, DISBURSEMENTS AND BALANCES - GENERAL FUND . . . . . . . . . . . . . . . . . " , . " , Cash in Bank - National Bank of America, Salina, Kansas. . . . . . . . . . . . . . . . . . . . . . . . . STATEMENT OF RECEIPTS, DISBURSEMENTS AND BALANCES OF CASH AND INVESTMENTS - BARTLETT FUND . . . . '. . . Page Number 1 to 4 I) to 6 7 8 r- .....,' --="=-.-- '-------'-~-=~~'-----~- .---- - ~---'-'--- ,-, u_-- -un. -'--,~"_.' -"-----~_. ------- KENNEDY AND (or (",Hfì"d Publk '~(CO,," ""h .. ... SA, UN;"., K,<"N$AS May 8, 1951 To the Board of Directors, The Free Public Library of the City of Salina, Salina, Kansas. Gentlemen: In accordance with your instructions, an audit has been made of the financial books and records of The Free Public Library of the City of Salina covering the period from January l, to December 31, 1950, inclusive. The report of such audit is herewith submitted. Copies of this report have been submitt,ed to the govern- ing body of the City of Salina. SCOPE OF AUDIT The audit was performed in accordance with the general and specific required pro- visions of the Minimum Standard Audit Program approved by the State Municipal Accounting Board. RECEIPTS, DISBURSEMENTS AND BALANCES OF CASH AND INVESTMENTS STATEMENT OF RECEIPTS, DISBURSEWJE11'I'S AND BALANCES - GENERAL FUND, Exhibit "ft II . The operating receipts and disbursements of The Free Public Library of the City of Salina are cleared through its General Fund. Exhibit fA If reflects the receipts and disbursements during the audit period and the balances at the beginning and closing dates of that period. The library treasurer received a total of $30,051.05 in appropriations from the City of Salina during the year 1950. This amount was verified by correspondence 'With the city clerk. During the period the librarian remit tad to the library treasurer, fines, member- ship fees, rentals and refunds in the amount of $961.45. Fines are assessed by the library for failure to return books within the time limit, membership fees are collected from rural subscribers, and rentals are collected for the use of certain books classified as pay shelf books. Such collections made at the lib- rary are ordinarily in very small amounts. Receipts are not issued for each col- lection but a record is maintained of total daily collections. The librarian's montb.1y summaries of daily collections were in agreement 'With the amounts remit- ted to the library treasurer. These remittances were made !r0I1l twenty to forty days after the end of the month in which the collections were made. It is recom- mended that these items be remitted to the treasurer within f11re days after the end of the applicable month. All disbursements out of the 'General Fund, except disbursements ehargeable to the Museum Acoount, are made by a combination check, warrant and claim voucher form. The c:;t.aim voucher section of this fonn is prepared at the data the check is is- sueçl ,and the payee-claimant is requested to sign the claim voucher before depos- i ting,the ~check. After these forms clear through the bank, the library board ordinarily bas a signed claim TOucher and cancelled check to substantint,c the disbursement. A siÍni1ar 'Procedure is followed with res'Oect 1:.0 disbursAmAnts r- - -----.--.-- '-- u_-- . - - - . - .------ ------------------------------------- chargeable to the Museum Account, except that a separate claim voucher fonD. is forwarded to the payee with a warrant check. The payee is requested to sign and return the claim voucher. The approval of the librarian did not appear on sev- eral claim vouchers and our tests revealed that many disbursements were not sup- ported by claim vouchers properly signed by the claimants. Checks issued during the period were examined as to number, payee, payee endorse- ment, signatures and bank cancellation, and were compared with the record of checks issued. ~ith few exceptions, checks bore the signatu~!S of the president, secreta~ and treasurer. Claim vouchers paid during the period were test checked with invoices and where applicable, claim vouchers were compared 'Vri th the amounts of the warrant checks issued in payment thereof. During the year the $100000 United States Savings Bond o~TIed at January 1, 1950, was cashed and the receipts from the bond were applied upon the purchase price of a tape recorder. This action was approved by the library board but the funds were not deposited in or taken out of the bank account of the treasurer. Although the records contain an invoice covering the total price of the recorder, there is no properly signed and approved claim voucher for the portion of the purchase price of the record player paid for by the proceeds from the sale of the bond. On December 30, 1950, ~t413.66 was transferred from the "Bartlett Fund" to the "General Fund" by check. After December 31,1950, the same amount was transferred back from the "General Fund" to the "Bartlett Fundlt. For the purposes of this report, these transactions have not been included in fund recE!ipts and disburse- ments. CASH IN BANK - NATIONAL BANK OF AMERICA, SALINA, KANSAS, Schedule 1. Under this schedule the General Fund bank balance, as confirmed by the depository, is recon- ciled to the treasurer's balance December 31,1950. The treasurer maintained no record of disbursements 1949, 12-1213. as is required under G. S. COMPLIANCE WITH CASH BASIS AND BUDGET LAWS. Under the provisions of the cash basis law (G. S. 1949, 10-nOl to 1122) it is unlawful to make payment out of ot' to create an indebtedness against any fund in excess of mone;r actually on hand in the treasury to the cradi t of the fund. Under the provisions of the budget law (G. S. 1949, 79-2935 to 2937) it is un- lawful to make payment out of or to create an indebtedness against any fund in excess of the amount provided for that i'und by the annual budgE~t. I The following statement shows the computation of the expenditures of the General Fund for the year 1950: cash Disbursements for the Year 1950 $31,179.35 Less - Indebtedness December 31, 1949, in- ---- eluded in 1950 cash disbursements 77.68 Add - Indebtedness ereated during 1950 but - not paid before December 3l, 1950 Expendi tures for Year 1950 $31,101.67 82.98 J~ r- . - - - - ----" ',--'---~u -----.- ---~---- -~--- ---------- The amount of the indebtedness created during the year 1950, which was unpaid December 3l, 1950, was determined by examination of claim vouchers paid during the months of January and February, 1951. The following statement show-s a comparison of actual receipts, expenditures balances with those anticipated by the budget: Unencumbered Fund Balance - January 1,1950 Receipts - Year 1950 From Taxation Other Receipts Total Expenditures (Per computation above) Unencumbered Fund Balance - December 31, 1950 and Amount Over or Per Under Actual Budget Budget $ 105.79 ~; $105.79 30,051.05 30,050.83 .22 961.45 599.17 362.28 $30,906.71 $30,650.00 "~256. 71 31,184.65 ~30,650ooo 534.65 277 .94 1 J~277. 9~ The above statement shows that there was a violation of the budget law in the amount of $534.65 for the year. The cash basis law was violated December 31, 1950, by $277.94. STATEMENT OF RECEIPTS, DISBURSEMENTS AND BALANCES OF CASH AND INVESTMENTS, BART- LETT FUND, Exhibit "B". The Bartlett Fund represents the unEiXþended balance of funds originating from a bequest made by Jennie V. Bartlett, deceased, plus in- terest received on the investments of the fund. The receipts of the Bartlett Fund during the year 1950 consisted of interest on United States Treasury Bonds and premium upon the sale of the remaining bonds. Exhibit "Bit reflects the receipts and disbursements of the Bartlett Fund during the audit period and the balances at the beginning and. closing dates of the per- iod. The bank balance was confirmed with the depository and t.he details of the sale of United States Treasury Bonds was confirmed with the Na'~ional Bank of Am- erica, Salina, Kansas. During the period there were no formal permanent records maintained. of the Bart- lett Fund transactions. INSURANCE AND FIDELITY BONDS A summary of insurance and fidelity bond coverage December 31, 1950, is as fol- lows: Property Insured Building Building Contents Museum Contents Boiler Coverage Amount Fire and Extended Coverage* Fire and Supp1ement8.l* Fire and Supplemental Boiler Explosion $61,500.00 20,000.00 2,000.00 5,000.00 r- - -.---.---.-- ,------------ - -=---=-=_o~~c --- =c~====~=~-~~'=l' Coverage Amount Fidelity Bond Henry H. Eberhardt $ 4,000.00 ~'f- 80% Co-Insurance A bond for the treasurer in the amount specified by the library board is required under the provisions of G. S. 1949, l2-l2l1, such bond to ~~ approved by tl1e Board of City Commissioners. The minutes of the library board dated June 30, 1942, authorized a bond in the amount of $4,000.00 which is "!he 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. The fidelity bond of the treasurer was renewed upon its expiration by a continu- ation certificate issued by the surety company. The effect of the continuation certificate is to extend the period to which the amount of the bond is applicable and does not provide $4,000.00 of coverage for each term. A b<:md is required by statute and it is apparently intended that a separate coverage of the full amount be provided for each term and we are of the opinion that this requirement cannot be satisfied by a continuation certificate. GE NERAL The minutes of the meetings of the board of directors indicatød that four meet- ings of the board were held during the year 1950. The board of directors did not make an annual report to the governing body of the City of Salina as required under the provisions of the statute G. S. 1949, 12-1206. CERTIFICATE I certify that, in my opinion, subject to the foregoing commen'ts, the accompany- ing exhibits and related schedule reflect the financial cond:ition of The Free Public Library of the City of Salina December 31, 1950, and the result of its operations for the period from January 1, to December 31, 1950. Respectfully submitted, I I I i I II II II Ii II I' Ii ,I !i II II Ii II I' ,I II ~ C.P.A. pal Public ACCðuntant and a,~ti very engaged on 4. r- '!- u -~--~ -- -".. -- - - - d__- -----H --------- - ---~-- ----------._----,----,---- --------------"___n____~._--~-----=~~c~=~~ THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA-~~~-~l Salina, Kansas STA TEMENT OF RECEIPTS, DISBURSEMENTS AND BALANCES - GENERAL FUND January 1,. to December 3l, 1950 Treasurer's Balance - January 1,1950 Receipts Appropriation from City of Salina Fines, Memberships and Rentals Total Disbursements Salaries and Wages Librarian Cataloger Children's Librarian Reference Librarian Circulation Librarian Museum Curator Custodian Treasurer Historian Student Assistants Books Periodicals Binding Heat, Lights and Water Telephone Building and Equipment Maintenance Furniture and Equipment Office and Library Supplies Janitor Supplies Museum Expense Traveling Expenses Memberships and Dues Pos tage Auditing Insurance I Post Office Box Rent Bank Deposit Box Rent Freight and Delivery Miscellaneous $3,900.00 600.00 1,680.00 2,100.00 1,980.00 1,500.00 2,l92.50 50.00 900.00 ~ ,2,100.];:.2 I II ( I II II II I I I i I II II ,I II [I 1______- Total Disbursements Treasurer's Balance - December 31,1950 $30,051.05 --.J~6l.45 $17,OO2.6() 6,4713.39 468.20 2ho.69 5<>1.56 1;~9. 63 1, 2E18. 73 2,3l~1.33 67'8.09 98.24 760.00 433.39 48.50 123.96 20f),f)n 16.00 3.00 ~~.35 313.74 Exhibit "A" $ I II II II II I I I I I ,i 'I I I I i /, II 28.1l 31,012.50 $30,984.39 31,179.35 ~ ~ r- r--~~'~C'- -~-=~--, =.~ ---~~~.==~~,C~=-~-- . ----- -~~===~~cc_cc==,c_=="c=~ "==.===~--~".~=~-=,.=-=--=~ THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas Exhibit flA" (Contld.l STATEMENT OF RECEIPTS, DISBURSEMENT.s~ AND BALANCES - GENERAL FUTIID January 1, to Decembl)r 31;'-,-);0 Represented By Cash in Bank Less - Amount due the Bartlett Fund --rñterest for the years 1947, 1948 and 1949 on investments of the Bartlett Fund de- posited in error to the credit of the General Fund Funds advanced by the Bartlett Fund to the General Fund on December 30,1950 Less - Expenditures of Bartlett Fund paid - out of the General Fund bank ac- count during the year 1949 Total -- I II 'I II II II I ¡~ ---=-=-----==~~- $ 162.50 4l3.66 $ 576.16 33.06 q' <!t'> 348014 543.10 =*- =co194.~ f... r- ~-_. ~~co=-o~=----c'-. -'--~~.C- --~~==~-_._..=~.~-_.~- --.O~~=~..~~ =. .'."==-~~..'.==.~'._..= THE FREE PUBLIC LIBRARY OF THE CITY OF SALllffi Salina, Kansas CASH IN BANK - NATIONAL BANK OF AMERICA, SALINA, K.4.NSAS December 31, 1950 Balance Per Bank statement - December 3l, 1950 Add - Deposit in Transit Less - Outstanding Warrants Warrant Number 506 665 1043 1592 1638 1681 1683 1684 1685 1686 1687 Amount Warrant Number Amount -- -- $ 2.00 3.60 1.00 17.85 8.88 301.86 144.20 50.00 66.20 62.60 37.50 1690 1692 1693 1694 1695 1696 l697 5287 5289 5291 5292 5293 $ 44.40 36.85 39.90 11.00 4.00 317.50 37.D 4.00 6.50 10..00 20. 79 ~'.09 Book Balance - December 31,1950 Schedule 1 $l,552.76 89023 $1,641.99 l,293.85 ~ - ~ ,fL 1l¡. r- THE FREE PUBLIC LIBRARY OF THE CITY OF Sli.l.INA Salina, Kansas STATEMENT OF RECEIPTS, DISBURSEMENTS AND BALANCES OF CASH A1m INVEST1ŒNTS - BARTLETT PUND January 1, to December 31,1950 Balance of Cash and Investments - January 1,1950 Receipts Interest - United States Treasury Bonds Premium - Sale of United States Treasury Bonds ..,. 4 9f) ;¡¡> . u 90059 Disbursements Materials and Supplies - Young People's and Children's Rooms Balance of Cash - December 31, 1950 Represented By Cash in Bank - National Bank of America, Salina, Kansas Due from General Fund Interest for the years 1947, 1948 and 1949 on investments of the Bartlett Fu.nd deposited in error to the credit of the General Fund Funds advanced to General Fund on December 30, 1950 $162.50 ~413 . 66 ~ - Expenditures of the Bartlett Fund paid from the General Fund bank account during the year 1949 $~)76.l6 33.06 Total ---~---- - -- Exhibit "Btl $2,823.83 95.57 :it 2,919.40 1,607.00 ~1.3l2.40 $ 769.30 ,-'43.10 ~1,3l2.40