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Audit - 1952 TriL FRl~i:: Pü.JLIG LIllIihiìY OF 'lib eLl1. Ui" ~;¡iLIriA Salina, Kansas REPOHT ON EXMFNA'!ION Dc' '>':ow he r ':<1 '^"í'õ'['"';¡-- ,,~,',"-' ..--', "'-/.-"", lŒNNEDY AND COE Certified Public Accountants Salina - Kansas I I I I I I II ,I /: II ~ .[ -, _?;~i::t P']3_,IC .~L3?,,-,\itY OF To;i. C '~y "7' ;;J'.;,~-'J1. Loren Slaughter. :.tiss Helen Carlin. Henry -óberhardt. !Jrs. if. a .'Joses Mrs. H. N. :\1'0668 Miss Helen Carlin Loren Slaughter Mrs. V. C. Webb . . Salina, Kansas OFFI GERS . . . . . . . BCAHD OF DLLL-C:'Cù'.:) Ward Barcafer President . Vice-President Trc3asurer Secretary :Ai,,::; Grace E. ,-J tewart Rudolph Barta Peter M. Ilacdonald EXiìIßI'I' II f"; It Schedule 1 Schedule 2 EXHIBIT liB" EXHIBI'I' "c" -;;.:; ;"FL, f":,~:,-::'; ~_.>:,'.-;:'.' :..-'-"' "'cr' "" ~..' e-'~ c: " . v" ,...'i- ~;:;,lin.:~ ~ :r "...', ,,<, .\0....:.",-, INDEX COMMENTS. . . . . . . . . . . . . . . . . . . . . . . . . STATEMENT OF RECEIPTS, DT~3BUHEì;~:.f1WW AND BAr~M!CES OF C¡..s H - GENERAL FUND. . . . . . . . . . . . . . . . . Cash in Hank - National 3anl~ of i..merica, ";", General Fund . . . . . . . . . . . . . . Co, ,.::; - . . . . . Statement of Fund Balance - Ceneral Fund . . . . . . . . . STATEMENT OF ~LC~IPTS, DISBURSEMENTS MID BALANCES OF CASH - B!'"RTLETI' FUND. . . . . . . . . . . . . . . . . STAT~NT OF RECEIPTS, DISBURSEMENTS AND BALANCES OF CASH - VOCARIUM ACCOUNT. . . . . . . . . . . . . . . Pa[;e 1\T¡lmber -- 1 to h :) 6 7 8 9 J¡1"r , L 1 oc:::¡ . '-'-'-.r .L4, ~./-,-' To the .doard of Lirecto!'s J The Free Public Library of the City of Salina, Salina, Kansas. Gentlemen: In accorda.'1Ce with your instructions, an examination has been made of the financial books and recorda of Th€ Free Public Library of the City of Salina covering the period from January 1 to December 31, 1952, inclusive. The report. of such exa.1J1- ination 18 herewith subuitted. A copy of th.ia report has been submitted to t..i¡e governing body of the City of Salina. SCOPE OF EXAMINA TION The examination was performed in accordance with the general and specific required provisions of the Minimum Stan:iard Audit Program approved by the State Municipal Accounting Board. . CŒfi!.~:!'l'I~) S1'ATE2AEN'l' OF RECEIPTS, DT~\BURSUŒ~1'JS AND BALANCES OF CASH - GENERAL FU"ll, l<:x.J,ibit !If.. If. The operating receipts and disbursements of The Free Public Library of t!le City of Salina are cleared through its General Fund. Exhibit 'fAil reflect::::oel6 receipts and disburaements during the pe 1'iod and the balanc:ea at the beginning and closing dates of that period. The library treasurer received Q. total of $36,349.80 in appropriations from the City of Salina during the year 1952. This amount was verified with the city clerk. During the period the librarian reJlÚ.tted to the library treasurer, fines, member- ship tees, rentals and refunds in the amount of $952.1). Fi;OO8 are assessed by the library tor failure to return books wi thin the time l1mi t, membership fees are collected from rural subscribers, and rentals are colle':Jted for the use ot certain books classified as pay shelf books. Such collectio:œ made at the lib- rary are ordinarily in very small amounts. Receipts are not i !lsued for each col- lection. These remittances were not made immediately after the end of the month J in which the collections were made. It i8 again recommeni.!d that these items be rem! tted to the treasurer within ti ve day. alter the end at the applicable month. Checks iBsusd during the period were examined as to number, paJ'e8, payee endorse- ment, signatures and bank cancellation, and were compared with the record of che cks issued. Claim vouchers paid during the period were test checked with invoices and claim voucœrs were test cheaked with the amounts of the warrant checks issued in pa;yment thereot. 1. GA.:5.iÍ I:i BANi': - NAT.~Cj ,ri,.. ;L,r CJF /i l;3ICi:¡~);~:,UI1., !':-,NS":.,, Schedule 1. 'Jnùer this schedule the Genera.l F.,a) bank balance, as confirmed by the dleposi "tory, is recon- ciled to the treasurel"\.~. Dalance December 31, 1952. The treasurer mainÜuTi.¡ no record of difibursements a8 is required under "';. s. 1949, 12-1213.. CC'PLIAHCE ViTTH CASHb:~:<IS AiL &:'>;1_1' LA~YS. '.Tnder the provÜ,ions of the Gash basis law ((,. s. 1949 j 10-1101 to 1122) . it i¡s unlawful to make payment out of or to create an indebtedness against any fund in excebS of money actually on hand in the treasury to the credit of the f'und. Because of the inadequacy of the records maintained it is impractical to determine compliance with the ca$h basis law during the year. Under the provisiorw of the budget law (G. S. 1949, 79-293S to 2937) it is li.."1- lawful to make payment out of or to create an indebtednes~ against any fund in exces::¡ of the amount provided for that fund by the annual bud.get. The following statement shows the computation of the expenditures of tœ General Fund for the year 1952: Cash Disbursements for the Year 1952 $36,972.26 Less - Indebtedness December 31, 1951, included in 1952 cash disbursements 135.52 Add - Indebtedness c:æated during 1952 but not - paid before December 31, 1952 $36,836.74 Expendi tures for Year 1952 448.47 ~:;3L2~h~1.:. 'I'he amount of the indebtedness created dUring the year 1952, which was unpaid December 31, 1952, was determined by examination of claim vcochers paid during the months of January and Fe bruar.f, 1953. The following statement shows a comparison of actual revenue, expenditures and balances With those anticipated by the budget: Unencumbered Fund. Balance - January I, 1952 Revenue - Year 1952 From Taxation Other Revenue Total ¥Jcpend1 tures (Per computation above) Unencumbered Fund Balance l~<:_- . - December 31, Amount (Over) Per or Under Actual !:tdget Budget $ 461.21 $ ($461.21) 36.349.80 36..349.80 952.13 800.20 J151.93) - $37,763.14 $37,150.00 ($613.14). 37,285.21 ..11i150 .00 (135.21) II ~ 1-_~ - (~.J) I 2. The above statement shows that there was a viclâ.tion of thB budget law in the amount of $135.21. STi,T.r..M1~NT OF FUND BM,ANCL - GF,NrjÜL END, Schedule 2. This ::>tatement S!1OYiS the computation of the Unencumbered Jeneral Fund balance at December 31, 1952. S'I,c;TiiÆ'JT OF RFCi:,IPTS, r.::1~;13'JRSt)&N1S AND BAL,f,:~C¡<,S OF GASH, BAfì'H,ETT P"?>D, Exhibit "b't. The Bartlett Funà represents the unexpended balance of funds origirmting from a bequef:ôt made by Jennie V. Bartlett, deceased, plus interest received on the investments of the fund. E..xhibit ItBlt reflects the receipts and disbursements of the ;j;;rtlett Fund during the audit period and the cash balances at the beginning and closing da.tes of the period. The bank balance was confirmed with the depository. In addition to the cash balance there is an amount of $129.44 due from the General Furrl to the Bartlett Fund at December 31, 1952, as explained in Schedule 2. The fund balance at December 31, 1952, is therefore $276.90. STATEMENT OF !ECEIP'fS, DISBllRSEMEN"TS AND BALANCES OF CASH -. VOCARIUM ACCOTJN'!', Exhibi t "C". During the year 1951 the board of dire ctors accepted a gift of $250.00 from Leslie Kreps Post 1162, I~ansas Department of the American IR-gion and iU! auxiliary for the purcllase of certain equipnent for the library. This exhibit shows the transactiona of the special fund used for accounting for this gift. I NSURANCE AND FIDELITY BO:1JS A summary of insurance and fidelity bond coverage December 31,1952, is as fol- lows: Property Insured Building Building Contents Museum Contents Boiler Coverage f~oun t Fire and Extended Coverage* Fire and Supplemental~ Fire ani Supplemental Boiler hplosion $76,500.00 40,000.00 2,000.00 5,000.00 Fideli ty Bond Henry H. I!.'berhard t 4,000.00 * 80% Co-Insurance A bond for the treasurer in the amount specified by the library board is requi red under the provis10ns of G. S. 1949, 12-l211, Buch bond to è.~ approved by the Board of City Commissioners. The minutes of the library bOClrd 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. The fidelity bond of the treasurer was renewed upon its expiration by a continu- ation certificate issued by the surety company. Toe effect of the continuation certificate is to extend the period to which the amount of the bond is applicable am. does not provide $4,000.00 of coverage for each term. A bc,nd is required by statute and it is apparently intended that a separate coverage c,f the full amount be provided for each term and. we are of the opinion that this requirement cannot be satia1fied by a continuation certificate. GE.'ŒRAL Th~ purchase order and claim voucher system in use by the libra~r doe~ not meet the requirements of such systems prescribed for use by Kansas 'Junicipali ties. In many instances it is evident that purchase order claim voucher forms are not properly executed by the vendor until a considerable time after the merchandise had been received by the library. In numerous instances, there was no claim voucher attached to vendors t invoices.. In other instances invoices were lacking and the information on the claim voucher gave an insufficient ,ænount of infonnation concerning the purchase. No record is maintained which ilmicates the creation of indebtedness and it appears that many vendors are paid without having first rendered a properly executed and detailed claim. It is recommended that consideration be given to improving the control of ex- penditure by making pa}~ents only after properly executed and detailed claim vouchers have been received. Some procedure should also be in use which will provide a control over the outstanding indebtedness of the librar.f. During the period a bond issue of $>25,000.00 was at1thori:~ed by a vote of the ci tizens of Salina for certain improvements in the physical plant of the librar,:,¡. We have been informed by city officials that the bonds authorized will not be issued but that the authorization will be used to penni t øxpendi ture of funds frem a ci ty fund known as "General and Special Improvements in Lieu of Bonds Fund". Construction authorized by the vote upon the bond issue was comrnenced prior to December 31, 1952, and we have been informed by the office of the Salina City. Clerk that expenditures amounting to approximately $25,000.00 have been made in that construction work. All matters concerning the improvement program have been handled by the City of Salina. and not the Library Board. 'D:lerefore, there have been no receipts or expendi tures in regard to the program by. the Library Board. The minutes of the meetings of the board of directors were exa~ined for matters pertaining to the audit. The board of directors did not make an annual report to thl9 governing body of the City of Salina. as required under the provisions of G. S. 1949, 12-1206. CERTIFI c.UE In my opinion, subject to the foregoing comments, the aCCOmpéLI13ing exhibits and related schedules reflect the financial condition of The FreEl Public Library of the City of Salina as of December 31, 1952, ani the result of its operations for the period from January 1 to December 3l, 1952. Respectfully submitted, KE~nEDY À.¡"lD CaE, I: ~~~ C.P.A. cans nicipal b c Acèòuntant- in charge of and & (::ti valy engaged on this audit. Ii ~l n "4."- . '1.4;, ""'-'-.',u ? VI..) 7,dX.Jb 559. Y5 940.133 466.ld 143.24 243.98 2,173.18 998.45 93.24 900.00 601.71 95.oa 48.88 215.50 27a.4l 684.08 525.32 16. 50 3.00 24.29 320.t!3 :-,¡£ FREE PU'3LIC l.B \ARY 'J?:lIE CITY OF ~'ÂLINA Salina, Kansas STATJ:i;'~[~~NT OF F'ECFIPIS, I:rSBUF:;; ;~"ŒNTS il:\fD - 3AL/!.NCËŠ-/)};;- CASH - GENEHAL FU~-- JanuarJ 1 to . December 31, 1952 Treasurer's Cash Balance - ,January 1, 1952 Receipts J\ppropriation from the Ci ty of ~:a1in[! F'ines, Memberships and Rentals Total Disbursements Salaries and Wages Librarian Ca taloger Children's Librarian Reference Librarian Circulation Librarian Musewn Curator ~4,62J.JJ 6.);.00 2,JhJ.00 2,460. .J) 2,400.0J 1,<560.0J 2,460.)0 ~~O. OJ 3,355.06 I '/ I !I II Ii '/ / II I, II Custodian Treasurer Student Assistants Books Pe riodicals Binding Heat, Lights and Water Telephone 8uilding and Equipment Maintenance Furniture and Equipment Office and Library Supplies Janitor Supplies Museum Expense Traveling Expense Memberships and Dues Postage Auditing Social Security Tax Records Insurance Post Office Box Rent Bank Deposit Box Rent Freight and Delivery Miscellaneous Total Disbursements Treasurer's Cash Balance - December 31,1952 :~ 36 ,349. cD 952.13 Exhi.bi t II !;H ,', .';, '1'26.17 37,.3 JL 93 t3d,J2b.1J 36,972.26 1.1~~~;,ö4 . ¡ 'l[f'~ FR"~E ;tHLlr; LTBfiIHY '? ':"i¡¡~ ""::c:y ') '~i, IN/\ ::'ali:1a, Kansas c~~;¡.¡ IN '3lL'J: - NA'rrONAL BAN"C OF !LT:"i'IC:A, SALIN/;, '<.^N~:!\:- -------- GEN¡~:AL -¡;UND Deëëñiber -:31, 1952 Add - Deposi t in Transi t ~a1ance ?er Bank Statement - December 31, ~?~~~ Less - ~ùtstanding Checks Check Number 1043 506 66') 1778 191ü 259 782 366 367 868 869 870 en 872 873 874 875 876 877 878 879 880 B8l Amoun t Check Number ;It 1.)0 ?JJ 3 .60 1.15 1.58 36.80 6. [;0 67.'1;) 69.33 48.45 80.43 66.58 19.73 38.33 38.51 14.30 10.58 7.94 55.83 18.50 214.27 3.09 2.57 dd2 883 8d4 885 da6 :)87 ,< u dÖ9 d9.J 891 892 d93 <'394 (396 b97 898 899 901 902 9)3 905 906 5361 5362 5364 Book Balance - December 31,1952 Ii I jl,-nount ':~ ',,' 3.9J 3.72 1.90 34.32 500.0) 39.0) 47.72 . i_- 9J. JÓ 6.41 103.113 12.41 252.01 37.99 1,864.75 102.34 23.77 236.31 4.00 38.80 37.03 4.00 12.00 22.69 - 125.00 Sched;.l.e !. ¡: ¡~ ~ 913. JÜ í':/.7Ô --- .:"j 1) , 992 .132 4,936.98 tk.9r~~ ,.2-4: THE FREE PUBLIC LIB,ARY OF THE (" lIT OF S:~L:rNÞ. ~;alína , Kansas STA'T'F::¿,ENT OF FUND BAht,NCE - GE1'iE;RlU" FUND December 31,1952 Less - Treasurer's Cash Balance - December 31, 1?52 Arrh")unt Due tl1e Bartlett !,'und (See :ìe"-,~'L on Examina tion da ted Dece:¡¡ber .>-- ~ -~,' for details) au tstanding Indebtedness unpRid a t December 31,1952 General ~ùnd Balance - December 31,_1952 ~7,129 . 44 41+:)<47 :3 chedui.e ;) ~a,Jf;5.j4 [:77 . 91 ~ 477.93 ~o.~,~.,-::==:!= T'1E FREE PU3LIC LIBRARY OF T":IE CITY OF SALINA Salina, Kansas STATEMENT OF RECEIPTS, DISBURSEI~TS AND -- BALANCES OF CASH - '1ARTLE'IT FUND -- ,January 1 to December 31,1952 Balance - January 1,1952 Receipts Disbursements Figurines and Furnishings Balance - December 31, 19S2 Exhic_t. "3" -.--------.------ 512'/3.19 ~'73.l.9 12S.73 ;~..L- 1.'7 46 '::.- '=~ .=:- TIE F'RT~E PUBLIC LIBRARY OF T:m CITY o¡, SALINA ~~alina, Kansas STATEMENT OF RECEIPT~, rISDUR.3EMENTS Þ.ND BALANCES OF CASH - VOCARIUU ACCOUNT January 1 to December 31,1952 Balance - January 1,195::' Receipts Disbursements Records Balance - December 31,1952 Exhibi t 'IC" $.16. 2¡~ --- $16.25 16.25 (.; ~;:.~:".,,=~