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Audit - 1953 THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas REPORT ON EXAMINATION December 31, 1953 If I' Ii .. I! i KENNEDY AND CaE Certified Public Accountants Salina - Kansas Ii it THE FREE PUBLIC LIBftA.h¡Y OF THE CITY OF SALINA Salina, Kansas OFFICEHS Loran Slaughter. . . . . . . . . . . . . . . . . . . . . . . President Miss Helen Carlin. . . . . . . . . . . . . . . . . . . . Vice-President HenrYEberhardt...................... . Treasurer Peter MaCdonald....................... Secretary BOARD OF DIRECTORS Loran Slaughter Miss Helen Carlin Herschel Logan l'4rs. V. C. Webb Peter M. Mscdonald Miss Irene Bjurstrom Rudolph Barta Ward Barcafer EXHIBIT itA" Schedule 1 Schedule 2 THE FREE PUBLIC LIBRARY OF THE CITY OF SALJ:IiJA Salina, Kansas IND EX COMt4ENTS . . . . . . . . . . . . . . . . . . . . . . STATEMENT OF RECEIPTS, DISBURSEMENTS AND BALANCES: OF CASH - GENERAL FUND. . . . . . . . . . . . . . . . Treasurer's Cash Balance. . . . . . . . . . . Statement of Fund Balance - General Fund . . . . . . . . . INDEX Page Number 1 to 5 6 7 8 Ij " Ii June 14, 1954 To the Board of Directors, The Free Public Library of the City of Salina, Salina, Kansas. Gentlemen: In accordance with your instructions, we have examined the financial books and records of The Free Public Library of the City of Salina covertng the period from January 1 to December 31, 1953, inclusive. The report of such examination is here- with submitted. A copy of this report has been submitted to the governing body of the City of Salina. SCOPE OF EXAMINATION The examination was performed in accordance with the g;eneral and specific required provisions of the Minimum Standard Audit Program approved by the State Municipal Accounting Board. COMMENTS STATEMENT OF RECEIPTS, DISBURSEMENTS AND BALANCES OF CASH - GENERAL FUND, Exhibit itA It. The operating receipts and disbursements of The Free Public Library of the City of Salina are cleared through its General Fund. Exhibit itA" reflects the receipts and disbursements during the period and the balances at the beginning and closing dates of that period. The library treasurer received a total of $40,092.00 in appropriations from the City of Salina during the year 1953. This amount was verlfied with the city clerk. During the period the librarian remitted to the library treasurer, fines, member- ship fees, rentals and refunds in the amount of $1,334.63. Fines are assessed by the library for f,a11ure to return books within the time limit, membership fees are collected from rural subscribers, and rentals are collec~ted 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 ie:sued for each col- lection. These remittances were not made immediately after the end of the month. in which the collections were made. It is again recommended that these items be remitted to the treasurer within five days after the end. of the applicable month. Checks issued during the period were examined as to number, pE~ee, payee endorse- ment, signatures and bank cancellation, and were compared with the record of checks issued. Claim vouchers paid during the period were test checked with invoices and with the amounts of the warrant checks issued in pa,yment thereof" TREASURER'S CASH BALANCE, Schedule 1. Under this schedule is presented the bank balances at December 31, 1953. These balances were reconciled to bank balances confirmed by the depositories. The treasurer maintained no record of disbursements as is required under G. S. 1953, Supp. 12-1226. COMPLIANCE WITH CASH BASIS AND 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 against any fund in excess of money actually on hand in the treasury to the credit of the fund. Because of the inadequacy of the records maintained it is impractical to determine compliance with the cash basis law during the year. However on March 18 and 19, 1953, checks were issued in excess of the cash in the bank which resulted in a violation of the cash basis law. Under the pro vis ions of the budget law (G. s. 1949, 79-293:; 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 fund by the annual budget. The following statement shows the computation of the expenditures of the General Fund for the year 1953: Cash Disbursements for the Year 1953 $40,872.83 Less - Indebtedness December 31, 1952, included in 1953 cash disbursements 448.47 $40,424.36 Add - Indebtedness created during 1953 but not paid before December 31,1953 183.20 I Expenditures for Year 1953 ~40,607 .56 The amount of the indebtedness created during the year 19~;3, which was unpaid December 31,1953, was determined by examination of claim v~uchers paid during the month of January, 1954, and an unpaid claim voucher dated November 18, 1953~ which is to be paid when merchandise is received. The following statement shows a comparison of actual revenu~, expenditures and balances with those anticipated by the budget: 2. Unencumbered Fund Balance - December 31, 1953 Amount (Over) Pe:, or Under Actual Budget Budget ;$ 477.93 ;$ $ (477.93) 40,092.00 40,092.00 1,373.13 800.00 ( 573 .13 ) $41,943.06 $40,892.(;0 ($1,051.06) 40,607.56 40,E>92.00 284 .44 ~ 1,335.~~ $ (~~.L115 .50) Unencumbered Fund Balance - January 1, 1953 Revenue - Year 1953 From Taxation Other Revenue Total Expenditures (Per computation above) The above statement shows that there was compliance with the budget law. STATEMENT OF FUND BALANCE - GENERAL FUND, Schedule 2. This ¡;tatement shows the computation of the Unencumbered General Fund balance at Dece~)er 31, 1953. BARTLETT FUND The Bartlett Fund represents the unexpended balance of funds originating from a bequest made by Jennie V. Bartlett, deceased, plus interest received on the invest- ments of the fund. There was no change in the fund during the current year. $276.90 at December 31,1953, is represented by: The fund balance of Cash in Bank - National Bank of America, Salina, Kansas Due from Gene ral Fund ~)l47 .46 129.44 Fund Balance - December 31, 1953 $276.90 The bank ba1ance'was confirmed by the depository. The amount due from the General Fund represents the interest for the years 1947, 1948 and 1949 on investments of the Bartlett Fund deposited to the credit of the General Fund in the amount of $162.50 less expenditures of the Bartlett Fund paid from the General Fund bank account during the year 1949 in the amount of $33.c6. INSURANCE AND FIDELITY BONDS A summary of insurance and fidelity bond coverage December 31,1953, is as fol- lows: Coverage Amount red ntents ents Fire and Extended Coverageò<' Fire and Supplemental Fire apd Supplemental Boiler Explosion $76,500.00 40,000.00 2,000.00 5,000.0(: =rhardt 4,000.00 * 80% Co-insurance ,asurer in the amount specified by the library board is required os of G. S. 1953, Supp. 12-1226, such bond to be approved by the TInissioners. The minutes of the libra~T board dated June 30, a bond in the amount of $4,000.00 which is the amount of the osted by the treasurer. The treasurer's bond was approved by Commissioners on June 28,1943. of the treasurer was renewed upon its expiration by a continu- issued by the surety company. The effect of the continuation ~xtend the period to which the amount of the bond is applicable ie $4,000.00 of coverage for each term. A bond is required by lpparently intended that a separate coverage of the full amount ::h term and we are of the opinion that this requirement cannot continuation certificate. GENERAL and claim voucher system in use by the library does not meet ¡f such systems prescribed for use by KsLD.Bas Municipalities. L t is evident that purchase order claim YOucher forms are not )y the vendor until a considerable time s.fter the merchandise y the library. In many instances 1 there was no claim voucher invoices. No record is maintained which if'1ñi ,..,+""... ~""~ --_u ,. . CERTIFICATE ~----_.- In my c.pinion, BUÌJ,ject to the foregoing comments, the accompanying exhibits and related. schedules reflect the financis.l eondition uf TÌlr;ò Free Public Li1n'ary of the City :;f Salina as of December 31, 1953, an:l the result of its operations for the period from January 1 to December 31, 1953. Respectfully submitted, KENNEDY AND COE, f JLu_~-^ ~ ~ ~~ r.J C.P.A. Licensed Municipal Public Accountant in charge of and actively engaged on this audit. THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas STATEMENT OF RECEIPTS, DISBURSEMENTS AND BALANCES OF GASH - GENERAL FUND Janua:C'j 1 t,n D~>'rnì)\:\' 31) 1::.'53 Tr3asurel^' s Cash Balance - Janua.y,j' 1, 1953 Receipts Appropriation from the City of Salina Fines, Memberships and Rentals ~1is cellaneous $4C,092.00 1,334.63 38.50 Total Disbursements Salaries and Wages Librarian Cataloger Children's Librarian Reference Librarian Circulation Librarian Museum Curator Custodian Treasurer 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 Expense Memberships and Dues Printing Auditing Social Security Tax Recorda Insurance Post Office Box Rent Bank Deposit Box Rent Freight and Delivery Miscellaneous $4,620.00 840 . 00 1,929.50 2,700.00 2,640.00 2,046.00 2,700.00 50.00 6,116.01 $23,641.51 7,868.05 1,080.00 1, 01¡9 .1+5 574.53 170.15 550.37 889.27 1,189.01 64.33 750.00 531.95 107.50 124.37 229.25 317.82 766.85 493.12 22.00 3.00 8.77 441.53 Total Disbursements Treasurer's Cash Balance - December 31,1953 Exhibit "A" $ 1) 05~' .84 41,465.13 $42,520.97 40,872.83 4> 1~648.14 .'- 6~~ THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas Schedule 1 TREASURER'S CASH BALANCE December 31, 1953 Cash in Bank National Bank of America, Salina, Kansas Farmers National Bank, Salina, Kansas Planters State Bank, Salina, Kansas $1,u)4.E:4 2,672.36 ß 079 .06) ~~~ Treasurer's Cash Balance - December 31,1953 " II 'I II Ii f THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas STATEMENT OF FUND BALANCE - GENERAL FUND December 31, 1953 Treasurer's Cash Balance - December 31, 1953 Less - Outstanding Indebtedness unpaid at December 31, 1953 Amount Due the Bartlett Fund (See page 3 of report) $183.20 129.44 General Fund Balance - December 31,1953 Schedule 2 <hl ?,1¡ '1--"": ' , 312.64 $1,335.50