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Audit - 1959 -' THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas REPORT ON EXAMINATION December 31, 1959 KENNEDY AND COE Certified Public Accountants Salina - Kansas THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas LIBRARIAN Jerome Cushman OFFICERS Mrs.J.MartinHall...................""" President R. J. Newman ..........................VicePresident F.J.Brettle............................ Secre tary Dr. S. C. McCrae . . . . . . . . . . . . . . . . . . . . . . . . . . Treasurer BOARD OF DIRECTORS Mrs. J. Martin Hall 1o. II, ) I n. R. J. Newman Mrs. Joha Riddle F. J. Brettle Mrs. Albert Schwartz Dr. S. C. McCrae Ralph Exline* *Ex officio EXHIBIT "A" Schedule 1 Schedule 2 THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas INDEX COMMENTS......................... STATEMENT OF RECEIPTS, DISBURSEMENTS, AND BALANCES OF CASH - GENERAL FUND. . . . . . . . . . , . . . . . . Cash Balance - General Fund . . . . . . . . . . . . . . . Unemcumbered Cash Balance . . . . . . . . . . . . . . . . INDEX Page Number 1 to 4 5 to 6 7 8 KENNEDY AND COE CERTIFIED PUBLIC ACCOUNTANTS SALINA. KANSAS June 23, 1960 The Board of Directors, The Free Public Library of the City of Salina, Salina, Kansas. Gentlemen; We have examined the financial books and records of The Free ]Public Library of the City of Salina, Salina, Kansas, for the period January 1 to December 31,1959, inclusive. The report of such examination is herewith submitted, The examination was performed in accordance with .the requirements of the Minimum Standard Audit Program approved by the State Municipal Accounting Board. SCOPE OF EXAMINATION A statement of the receipts, disbursements, and balances of the general fund of The Free Public Library of the City of Salina for the year 1959 is shown ur",lêI ;'>;.11 ibit "A". The library board made its own tax levy for the year 1958 and budgei. fOl the year 1959 under the provisions G.S. 1959, Supp. 12-1215. RECEIPT~ISBURSEMENTS AND BALANCES OF CASH - GENERAL FUND Receipts of the proceeds from the tax levy from the Saline County, Kansas, Treasurer were verified by an examination of the county treasurer's records and consisted of the following: 1958 tax 1958 sales tax 1957 tax and prior years $61,661.28 3,237.63 823.59 Total Receipts from County Treasurer .2&.5.722.50 A summary of the particulars concerning The Free Public Library of the City of I Salina tax levy for the year 1958 is as follows: Total levy per original tax rolls Received from county treasurer $62,383.03 6]:.1..661.28 Balance in county treasurer's hands December 31, 1959 $ 721.75 285.08 ~o11~~by County Treasurer December 3l, 1959 L 436.6l Fines are assessed for failure to return books within th¿ time limit and for damage to and loss of books, and membership fees are collected from nonresidents. These collections by the librarian are ordinarily in vèry small amounts and receipts are not issued for each collection. Such collections amounted to $2,160.96 for the year 1959 of which $2,158.96 was remitted to the library treasurer. The $2.00 unremitted by the librarian is included in cash on hand at December 31, 1959. Four remittances were made by the librarian to the treasurer during the year. In our previous reports we have recommended that such receipts be remitted within five days of the end of the month in which the collections were made. Checks which cleared through the banks during the period were examined as to date, payee, payee endorsement, signature, and bank cancellation. All prenumbered war- rant check forms used during the year were accounted for. Claim vouchers paid during the period were compared on a test basis with invoices and ~,ith the amounts of the warrant checks issued in payment thereof as recorded in the warrant regis ter. The vouchers were examined for legality and propriety of expenditure. It was noted that several of the vouchers were not signed or approved and that some expenditures were made for which no formal voucher was available. The treasurer's bank balance and the librarian's cash balance at December 31, 1959, are shown under Schedule 1. The bank balance was reconciled to the balance confirmed by the bank, and the cash on hand was counted. 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 fun;; \l excess of money actually on hand in the treasury to the credit of the fund. Be cause of the inadequacy of the records it was impractical to deterrnine the extent of compliance or noncompliance with the Cash Basis Law during the year. Under the provisions of the Budget Law (G.S. 1949, 79-2935 to 293l) it is unlaw- ful 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 a comparison of actual general fund revenue, ex- penditures, and balances with amounts anticipated by the budget: Total Amount (Over) or Under Actual Budget Budget $ 1,295.09 $ 535.35 $ (759.74) 65,722.50 64,432 . 65 (1,289.85) 2,209.83 1,500.00 (709.83) $69,227.42 $66,468.00 ($2,759.42) 66,413.71 66,468.00 54.29 Unencumbered cash balance January 1, 1959 Revenue From taxation From other sources Expenditures (see following computation) Unencumbered Cash Balance December 31, 1959 $ 2.813.71 $ ($2.813.71) The above statement shows that there was compliance with the Budget Law. The following statement shows the computation of the expenditures of the General Fund for the year 1959: Cash disbursements for the year 1959 Deduct - Indebtedness at December 31, 1958, paid and included in 1959 cash disbursements $66,423" 13 41.09 Add - Indebtedness created during 1959 which was not paid at December 31, 1959 $66,382.04 Expenditures for Year 1959 31. 67 $66.413,71- The amount of the indebtedness created during the year 1959, which was unpaid at Deceaber 31, 1959, was determined by examination of claim vouchers paid during the month of January, 1960, and by reference to the minutes of the board of directors. Schedule 2 shows the computation of the unencumbered cash balance at December 31, 1959. RECEIPTS, DISBURSEMENTS AND BALANCES OF CASH - BROCK COLLECTION FTT1;:J[ì The library board accepted gifts during the year 1958 for the purchase of the C. E, Brock country store and blacksmith shop collection. The fund for the most part was also expended during the year 1958, however there were certain expenditures made during the year under review as outlined in the following statement. Following is a summary of the transactions of this fund during the year. Cash Balance January 1, 1959 $882.06 ¡ I i . , f , r i I I J L Receipts -- Disbursements Repairs and maintenance Storage $882.06 $1l8.29 77 .00 Total Disbursements 195.29 $686.77 Cash Balance December 31, 1959 The above balance of $686.77 was on deposit in the Planters State Bank, Salina, Kansas. This amount was confirmed by correspondence with the depository. INSURANCE AND FIDELITY BONDS Cover age Amount Property insured Building Building contents Museum contents Boiler 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 Margaret Prescott Wise art collection Brock Memorial collection Fidelity bond Treasurer of the Salina Public Library Fire and supplemental coverage 1,556.00 5,000.00 5,000.00 * 80% coinsurance GENERAL The purchase order and claim voucher system in use by the library does not meet the requirements of systems prescribed for use by Kansas Municipalities because a record is not maintained to show the amounts of indebtedness created. The minutes of the meetings of the board of directors were examined for matters pertaining to the audit. CERTIFICATE In our opinion, subject to the foregoing comments, the accompanying exhibit and related schedules present fairly the cash position of The Free Public Library of the City of Salina as of December 31, 1959, and the financial transactions for the period January 1 to December 31, 1959. Respectfully submitted, KENNEDY AND COE, /~ Licensed Municipa Public in charge of and actively this audit. C.P.A. Accountant engaged on 4. THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas STATEMENT OF RECEIPTS, DISBURSEMENTS, AND BALANCES OF CASH - GENERAL FUND January 1 to December 31, 1959 Cash Balance January 1, 1959 Rec~ipts Ad valorem property taxes Residue sales tax Fines and membership fees Miscellaneous Total Receipts Disbursements Salaries and wages Librarian Children's librarian Reference librarian C~rculation librarian Assistant circulation librarian Custodian Bookkeeper Student assistants Books Periodicals Travel Bindings Water Light and heat Telephone Building maintenance and repair Janitor supplies Office and library supplies Audit ing Furniture and equipment Insurance Records and prints Memberships and dues Post office box rent Safe deposit box rent Freight and drayage Advertising Social security Miscellaneous $7,260.00 3,840.00 4,200.00 4,200.00 2,700.00 3,420.00 300.00 9,842.29 $62,484.87 3,23/.63 2,160.96 48.87 $35,762.29 13,838.31 1,190.90 114.92 3,449.02 61.70 1 , 680 . 10 391. 43 515.42 211.75 1,202.98 500.00 757.95 584.59 1,131.63 262 . 00 18.00 4.95 13.65 66.10 828.61 512.92 Exhibit "A" $ 1,336.18 67,932.33 $69,268.51 THE FREE PUBLIC LIBRARy OF THE CITY OF SALINA Salina, Kansas Exhibit "A" (Contd.) STATEMENT OF RECEIPTS, DISBURSEMENTS> AND BALANCES OF CASH - GENERAL FUND January 1 to December 31, 1959 Museum expenses Salaries and wages Curator Assistants Supplies Museum objects Telephone Equipment Freight and drayage Miscellaneous $ 50.00 2,104.53 $ 2, l5f,.53 23.72 220.00 149.55 63.81 47090 64.40 Total Disbursements Cash Balance December 31, 1959 $66,423013 $ 2.845.38 TIlE FREE PUBLIC LIBRARY OF THZ CITY OF SALINA Salina, Kansas CASH BALANCE - GENERAL FUND December 31, 1959 Treasurer's Cash Balance Farmers National Bank, Salina, Kansas $2,787,38 Librarian's Cash Balance Library change fund 58.00 Total Cash Balance December 31, 1959 ~~845 . 38 Schedule 1 THE FREE PUBLIC LIBRARY OF THE CITY OF SALINA Salina, Kansas UNENCUMBERED CASH BALANCE December 31, 1959 Treasurer's cash balance December 31, 1959 Deduct - Outstanding indebtedness unpaid at December 31, 1959 Treasurer's unencumbered cash balance December 31, 1959 Librarian's cash balaQce December 31, 1959 Total Unencumbered Cash Balance December 31, 1959 Schedule 2 $L,787,38 31.67 -C_.-> $2,755,71 58.00 $2.813.71