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Audit - 1957 THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina J ICanS8S REPORT Ot~ EXAMINATION Decetm>er 31, 1957 . 1ŒMNEDY AND COE Certified Public Accountants Salina - Kansas C. N. Hoffman, Jr. Mrs. J. J. Donelan Henry Ebedurc1t Her sclM 1 Logan Mrs. Donald AlBeod F. J. Brettle Mr.. J. J. Doue lan _.v. J.... S. .Elliott THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Sa 1 ina. Kansas LIBRARIAN Jerome Cushma.n OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . President . . . . . . . . . . . . . . . . . Vice President ...... ..............".. .................... """" BOARD OF DIRECTORS Treasurer Secretary Mrt;. J. Hartin Hall C. N. ßoff~an, Jr. Herschel Logan Ralph 1!. Exline EXHIBIT "Af' Schedule 1 Schedule 2 THE FREE PUBLIC LIBRARY OF TtlE CITY OF SALINA Sa 1 iWi, Kansas INDEX COMMENTS. . . . . . . . . . . . . . . . . . . . . . . . STATEMENT OF RECEIPTS, DISBURSEMENTS J MiD ßÂUNCES OF CASH. . . . . . . . . . . . , . . . . Cash Balance. . . . ............ Unencumbered Cash Balance . . . . ..... IDU Page Number 1 to 4 ;; to 6 1 8 KENNEDY AND CaE CERTIFIED PUBLIC ACCOUNTANTS SALI NA. KANSAS May 14, 1958 The Board of Directo¡'I$, The Free Public Library of the City of Salina, Salina, Kansas. C.en t lemen : W. have exarained the financial books and ¡ecords of The Free Public Library of the City of Saltna, Sa11na. Kansas, for the pørlod January 1 to ]!>ecember :31, 1957, inclusive. The report of such examination 1s herewith subillittted. SCOPE OF EXAMINATION The examination ""as pel:fooned 1n accordance with the requirements 01 the Minimum Standá.rd Audit PrognlIJ:t app¡-oved by the State Municipal Account:lng Board. RECEIPTS, DISBURSEMENTS, AND BALANCES OF CAS]! A 8tattment of the receipts J disbursements, and balances of The Free Public. Library of the City of Salina for the yeu 1951 is sbownunder Exhibit "Art. The! library treasurer received a total of $58,465.05 in appro~'ri4t1.ons frO!l1 the City of Salina durb\g the year 1957. This a:uOUQt was verified by correspondence with the city clerk. Ftne. are .uesaed for fanure to return book. within tho time limit and for clacage to and 108. of book., and IIIe1DIMrahip fees are collected frOat nonresidents. These coUectiona are ordinarily 1n very 8ull .-oUl1~. a&1d t"ecelpts sore GOt 1..ued for a.ach collection. Fine and. aeabership fee eoUections of $1,6'°.41 were remitted by tbe librar1an to the library trea.urer except that $5.00 was retained by the l1bt'arun. The 4I8Ount retainecJ increa.ed the a80unt of cash Oll hand from $49.00 at the be¡lnning of the year to $54.00 at Þaceœber 31,1951. Four r~lttances we~e --de by the librarian to the tre.surer cJurin& the year. In our previous t'eports we have re'cocaended that such rece1pta be rea1tte4 within five .says of the 8nd of the 1ftOBth 10 which the c:olle<:UOQs vere aa~. Checks which cleared through the bank. dud.uS the perl.od were exa.iRed .a to elate, payee. payee endorae..nt, signature, and bank C4Ucellatton. All prenuabere4 warrant check for8. usecl during the year were accounted. for. Cla1.ai vouchers patd durio.g the. period were coapared on a test bash with 1nvoices and. with the amount. of the warrant checks haued in payment thereof a. recorded in the warrant register. The vouchers were exaœined for legality and propriety of expenditure. It was noted that several of the vouchers were not signed OT approved and that some expenditures were made for which no formal voucher was available. CÞ.SH BAlANCES The tre$surer's bank balance and the librarian's cash balance at D~cember 31, 1957, are shown under Schedule 1. The bank balance was teconciled to the balance con- firmed by the bank, and the cash on hand was counted. The treasurer did not iUaintaln 4 record of disbursements ss is reqûi.ced under G.S. 1955, Supp. 12-1226. COMPLIANCE WITH CASH BASIS AND BUDGET LAWS Under the provisions of the Cash Basis Law (G.S. 1949, 10-1101 to llLl) it is unlawful to make payaent out of or to create &0. índebtedness ¡¡.gainst any fund in excess of money actually on hand in the treasury to the credit of the fund. Be- C8\.iSe of the iw&dequacy of the l:ecords it was i1npractical to dt/!te.r<ftinœ the exte...1t of noncompliance w1th the Cash Basi. Law during the year, bo~;ver, noncompliance was evident from an exa,¡nination of the bank statell1ents which sbowed that the bank account was overdra."IItU during the period fi.prH 1 to April 3, 1951. Under the provisions of the Budget Law (C.S. 1949. 79~¿93> to 1937) it is unlQ~- ful to make payment out of or to create an indebtednees again&t any fund in excesa of the amount provided for that fund by the annual budget. The following stat~ment shows a coaparison of actual revenue, expenditures, and balances ~itb a~ount8 anticipated by the budget: Actual ~dget Amount (Over) or Under Budget L'DencuœbeTed cash balance Revenue year 1957 J'rosa taxation Fro. other sources January 1, 1951 $ 457.33 $ 194.95 ($262..38) 58,465.05 1,875.47 58,465.05 -6.500.00 (375.47) Total $60,797.85 $60,160.00 <$637.85) Expenditure. (6ee following co.putation) 60,000.12 60,160.00 159.88 Unencusbered Cash Balance December 31, 1951 i 7~7 .l1 L-....... - "', (S197.73) The above .ute_at .how that there 'W48 CO8pliance with the Budget Law. The follc~Di atate~nt shoW$ the eo~putat!on of the expenditures of the General Fund fo~ the year 1957: Casb disbursements tor tho year 19>7 peduct - Indebtedness at DdcemGer 31, 1956, paid and included in 19>7 cash diabur8~t8 $59..239.94 42 .45 ~ - Indebtedne.. created during 1957 ",-bich wa. not p41d at December 31, 19S7 $59,197.49 802.63 Expenditures foe Year 1951 ~Jl~U The 8a!1OUQt of the 1:n4ebtedne.8 created dud.as the year 1951, which 'Wa. uapald at Deceëer 31, 1951, va8 deterntine4 1>}' exøtiut1on of clat. vouchers paid during the IIíOnth of January, 1958. ancl by refer_ce to the .!nute. of the bo,ar4 of directors. ~mmçUM8ERID CASH BlJANCE Schedule. l shows the coraput.ation of the unencuæbereci cash balanc~~ at Ðe.cember 31, 1957. I~SmlANCR~AND FÞ¡~ITY BOND! A .~ry of ilUlSt'ance and fld4l1ty bOU<I eoviltrage ÐeeEWlber 31 ~ 1 5 ï, iG at; 10 Uc,s: Covet:'a~e Amount Property tnsured JGilding 80t141n& contents ..... coateat:a IoUer Karau.t Pr..cott Wi.. art collectt... Fi. U.ty bead Beary 8. ..budt Flee and ext.u4ed coverasew F11'e _41 supple8aratal coveraae* Fir4! IU14 aupp181lelltal covea.- Botler ..pl081oa $76"SOO.OO 40,000.00 1,000.00 S,OOO.oo l'1.re..4.upple8eGtal covera.e 1,556.00 4,000.00 .. 80% co ta... AD<:8 Â boad for the t..euurer 1n the 8Nunt a.pec:1fte4 by the library board is required uader the provisions of G.S. 1955, Supp. 12.1226. such bond to be approved by the Board of City eo.t.M1onara. The lllinutaa of the l{btar, bootrd dated .1une 30, 1942, authori.... « boa4 1a the aDIIOuat of ~,OOO.OO which 18 the MOImt of the bøn4. previously posted b, the tru.urer. The trea.urer'. boad v.a approved b, the Board of City Co8a1..1oo.r8 00 JUDe 28,1943. The fidelity bond of the treasurer was renewed by a continuation ,::ertif1cate issued by the surety company. The eff<ct of the continuation certif:lcate 1s to extend the period to which the amount of the bond is applicable and does not provide $4.000.00 of COverage foe each term. A bond is t'equired by statute and it is apparently intended that a separate coverage of the full arnoWlt be provided for each term, dnd we are of the opinion that this requirement cannot be satisfied by a continuation certificate. GENERAL The purchase order and claim voucher system in use by the library does not meet the requirements of systems pcescrlbed for use by Kansas Municipalities because a record 18 not maintained to show the amounts of indebtedness created. The .Lnutes of the meetings of the board of directors were ex&nlned for matters pertaining to the audit. CERTIFICATE In our opinion. subject to the foregoing cO$oents, the 4ccocnpanying exhibit and related schedules present fairly the cash PO6ition of The Free ]:Jubl1c Library of the City of Salina as of Decembee 31, 1957, and the Hnancial transactions for the period January 1 to December 31. 1957. j Respectfully subæitt,ed, KENNEDY AND CÙ::, t:. .::\. ~~ ~l C.P.A. Lice.nseð Municipal Public Accountant in charge of and actJ.vely engaged On this audit. $a 1 in~ ) X..ul:.la8 THE FREE PUBLIC LIBRARY OF Tim CITY OF SALINA Exhibit itA" STA T£MINT OF RECEIPTS. DISßURSEMENTS, AND 81\ LA NCES OF CASH January 1 to December )1, 1957 Cash Balance Januar~ 1~ 1957 Receipts Appr'opr1at1ous from the City of Salina Fines and membership fees Sal. of equipment Tot.! Receipts D 1 s In.,,:- .. e WIen t IT> Salaries and wagea Librarian C.lJtalQger Children'& lib~ðr1an Reference librarian Circulation Hbrarf.A1\ A8eistaDt circulation librarisn Cuetodian Boolflteeper TreasU1:'er Student assistants Books Parlec11ul. B1a41qa a.corct. &Act piCbar.. Ilea t . H,p t: . ... 1M ter .,.lapb.ou luf.l.iD.& _ad equ1paeat -útnaace I'unalture aa4 futuro Off1ce'" library...,11.. .Jaa1t:Qr euppU... Trav.U.aa ....s. """rÄ1,. ~.... AucJtt1q Social 8*CUr1ty tax ¡.sur_c. Post offiuÞX rea.t Saf. depos1tbcnt raat w..ee 1 lane.où.$ $5.004.00 1.596.00 3,204.00 3.396.00 3,396.00 ::,laO.OO 3,2()4.01] 180.00 50.CO 7.734.û?. Øubtotala Carrt" !'4n"wrcl $58,465,,05 1,690..47 185 .:.22. $29.85f~.Ü9 12 ,255 .~)4 981.;~6 1,625..82 1,296.82 865.43 39a.~~6 1,982.1.9 l,20S.83 1,335.56 l1o.:n 784.32 204.00 400.00 654.8% 508.57 24.00 3.80 569..9!. $55,070.8' $ 499.78 60.340.52 $60.840.30 $60,840.30 THE FREE PUBLIC LI8RARY OF THE CITY OF SALINA SJ.line. J(4US.a. ~,1t "A" (Contd.) STATEMENT OF RECEIPTS. DISBURSEMENTS. AND BALANCES OJ!' CASH January 1 to Dùcember 31, 19S7 Subtotals Brought Forward Disburse~ents (Contd.) Museu;u expense Salaries and wages Curator emer1tua Curator Assistants Supplies Art objects Telephone Equip'~nt Insurance Misce llaneous. $ 599.00 1,200.00 1,114.66 Total Disbursements Cash Balance DGcember 31, 1957 $55,070.89 ;2 .913.66 88.99 168 .,42 149.S8 747.11 19.,43 81.¡a6 $60,840.30 _59,2.39.94 t, 1 &';í(i 3(, " ;>=~,b""",~~,," THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA SalinA, Kansas Schedule 1 CASH BALANCE Decembar 31, 1957 ~urer's Cash ßalanc~ National Bank of America, Salina. !,mSi;1$ ~1,.546. 3& Librar1an'£ Ca$b 8alance Library change fund 54.DO Total Caab Balance Dec~er 31. 1957 ~6yO.3~ THE FREE PUBLIC LIBRARY OF THE CITY OF SALINßI Salina, Kansas UHE~UMBERED CASH BALANCE Decembec 31, 1957 Treasur.,rf!\ c.&&b balance Decmabcr 31, 1957 Deduct. Outgt¿tQding indebtedneu unpaid at ÐeCe-¡¡tbE:r 31, 1951 Treeaurerf& unencumbered cash balance December 31, 1957 Librarian's cash balance December 31, 1957 total Unencumbered Cash Balance Decøaba.r 31, 1951 ~ Schedu 1e .i.. $1.546.36 so;; .63 ~,-.~--.- " "-. $ 743.13 54.00 ~91 .12