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Home My WebLink About2024-10-21 - Agendas - Final Board of Trustees October 21, 2024 4 pm AGENDA Regular Meeting – Zeigler Reception Room Sallie Overbey, President Apr 2028 Rob Qualls Apr 2026 Stan Rodgers, Vice-President Apr 2027 Bret Park Apr 2028 Ann Wilbourn, Treasurer Apr 2027 Carla Davis Apr 2025 Barry Bryan, Secretary Apr 2029 Our mission is to strengthen our community and empower our citizens through free and public access to knowledge. I. Call to Order II. Roll Call III. Minutes - Approval of minutes from September 20, 2024: pages 1-2 IV. Reports A. Key Upcoming Events: page 3 B. Mission Moment C. Library Administration 1. Management Reports a. Performance Measures: pages 4-5 b. Strategic Plan progress through September 2024: pages 6-8 2. Financial reports: pages 9-22 3. Informational a. Bookmobile report b. Act 372 update c. HVAC replacement d. 2025 Budget progress e. Deli update f. Staff In-Service g. True Lit h. Fayetteville Adult Career Training i. Staff & professional development j. New staff & recognition D. Fayetteville Public Library Foundation - monthly report: pages 23-29 E. Friends of the Fayetteville Public Library F. Art Committee V. New business A. Discussion items 1. November and December meetings 2. 2023 Audit: pages 30-93 3. Campus Curfew Policy: pages 94-97 4. Bees: page 98 VI. Public Comment Adjournment 1 2 Homework Helpers with FHS National Honor Society Students (Grades 1–9) Mondays & Tuesdays, 4:30–6:30pm Students can drop in to get tutoring help from a National Honor Society student from Fayetteville High School. Ghost Tour at the Square with Fayetteville Haunts Tuesday, October 22, 6:30pm The Fayetteville Haunts team will lead a walking tour of downtown Fayetteville where they’ll reveal Fayetteville’s little-known stories and ghostly NWA legends. Be(A)ware Allergy-Friendly Halloween Extravaganza Saturday, October 26, 10am FPL is excited to partner with Big Box Karaoke and other organizations to bring the Be(A)ware Allergy-Friendly Halloween event to the library for the fourth year in a row! Kids can visit various allergy-friendly trick-or-treat stations and play on the Gathering Glade with games and bounce houses. This event creates a fun, inclusive and safe space for all children, those who suffer from food allergies and those who don’t. Get your costume ready for this unique celebration! NWA Jazz Society Presents a Retrospective – 30 Years of Jazz in Northwest Arkansas Sunday, October 27, 2pm The Northwest Arkansas Jazz Society is celebrating the history of the local jazz scene with a look back at previous shows and a live set featuring Claudia Burson on piano, Jim Greeson on bass, and Darren Novotny on drums. Come enjoy a fun combination of local music history and live jazz! NWA Fashion Week at FPL Friday, November 1 & Saturday, November 2 Explore fashion, form and fun during INTERFORM’s NWA Fashion Week! NWA Fashion Week embraces the essence of belonging and diversity. With a mission to illuminate fashion trends, emerging local brands, and aspiring designers, the event celebrates the blossoming culture of Northwest Arkansas. Join us for one (or many!) classes, workshops and events taking place at the library. More details are available on our website. Beekeeping Classes Monday, November 4, 11 & 18, 5:30pm Join our beginner beekeeping classes and learn the essential skills to care for your own hive, harvest delicious honey, and contribute to the health of our planet. This is a three-part series. MONAH on the Go! – Museum at the Library Saturday, November 16, 11am Enjoy a taste of what the Museum of Native American History in Bentonville, AR has to offer! MONAH will bring a selection of art, artifacts, resources, and books that introduce you to their story. From Maker to Market Fall Reception Saturday, November 16, 2–4pm As our final 2024 From Maker to Market cohort winds down, we welcome you to join us for an afternoon of networking and celebrating the Fall cohort’s accomplishments! We’ll be hearing from program participants as they share stories about their businesses, products, program experiences, and more. faylib.org / 401 W. Mountain St., Fayetteville, AR 72701 Key Upcoming Events 3 4 5 6 7 8 Fayetteville Public Library FY 2024 Monthly Financial Update – through September 30, 2024 (Preliminary: Subject to Audit) This is a summary report focused primarily on unrestricted activity within the following funds: Fund 10 (Library Operations), Fund 80 (Food Services), and Fund 85 (Events) through September 30, 2024. Budget Threshold: The percentage of revenue collected, and budget spent should be approximately 75%. Library Operations (Fund 10) Revenue (Unrestricted): • Revenue collected in the month of September 2024 was $410,595. • Revenue collected YTD through September 30, 2024, totals $5,777,268, which is slightly below target (by $595,240 or 9%). Similar to last month, the vast majority of this difference ($600,940) relates to insurance proceeds for the roof fire. To date, approximately $439k in insurance proceeds has been received. This is reflected in the Miscellaneous Revenue column below. If the impact of this line were removed, revenues would be within 0.1% of budget. Chart 1: Chart reflects actual revenue collection compared to year-to-date budget. Chart 2: Chart reflects five-year trend of property tax revenue. Local Tax Support, $3,063,539 City Transfers, $2,001,801 State Aid, $125,889 Charges for Services, $106,035 Contributions & Donations, $779 Miscellaneous Revenue, $437,737 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 Local Tax Support City Transfers State Aid Charges for Services Contributions & Donations Miscellaneous Revenue Revenue Collection: YTD Budget to Actual Excludes Transfers and Investment Earnings YTD Budget YTD Actual Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 $185,398 $34,604 $26,970 $224,053 $1,050,460 $67,438 $216,361 $182,934 $107,057 $348,251 $1,375,146 $669,829 2021 $374,781 $36,810 $28,029 $86,870 $1,370,511 $306,837 $181,110 $123,487 $122,157 $455,952 $1,342,894 $355,100 2022 $172,245 $109,149 $31,826 $278,545 $1,494,863 $167,110 $129,381 $102,381 $125,610 $457,275 $1,521,055 $680,634 2023 $224,095 $39,967 $38,023 $234,450 $1,753,608 $126,104 $111,861 $115,608 $123,611 $469,308 $1,751,690 $1,199,294 2024 $321,770 $13,552 $12,186 $129,384 $1,828,899 $318,454 $163,559 $128,815 $146,921 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 Property Tax Revenue: 5-Year Trend 9 Library Operations (Fund 10) Expenditures (Unrestricted): • Year-to-date expenses, including encumbrances, through September 30, 2024, total $7,063,137. • Overall, spending is less than planned (by $1,171,046 or 14%). Similar to last month, some of this difference (approximately $284k) relates to expenses due to the roof fire (and is reflected in the Materials & Supplies column below). However, other categories are also significantly under budget, notably Services & Charges, which is approx. $521k under budget. Chart 3: YTD Budget to Actuals comparison by category for Fund 10 (unrestricted funds). YTD Actuals include encumbrances. Food Services (Fund 80) Summary: Food Services Performance, through September 30, 2024: Month Over Month Comparison:  Net sales total $14,822, a decrease of 3% from August  Cost of goods sold total $10,253, an increase of 17% from August  Operating expenses total $17,596, an increase of 9% from August  Net operating loss of $13,027, compared to a loss of $9,526 from August Year Over Year Comparison:  YTD net sales total $158,220, a decrease of $49,586 or 24% compared to last year’s YTD net sales, primarily due to a decrease of approximately $28k in catering and $23k in food sales  YTD cost of goods sold total $84,932, a decrease of $30,117 or 26% compared to last year’s YTD cost of goods sold  YTD operating expenses total $149,796, an increase of $15,379 or 11% compared to last year’s YTD operating expenses  YTD net operating loss of $76,507, an increase of $34,848 or 84% compared to last year’s YTD net operating loss  Food services continues to see overall losses as gross profits aren’t able to cover operating expenses (currently operating expenses YTD are 2.04X gross profit; in 2023, operating expenses YTD were 1.45X gross profit). $3,988,123 $1,804,901 $1,630,662 $140,017 $530,071 $3,871,912 $1,466,608 $1,158,342 $148,069 $418,206 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 Personnel (excludes Mgmt fees) Materials & Supplies Services & Charges Maintenance Capital Outlay Expenditures: YTD Budget to Actual Excludes Transfers YTD Budget YTD Actual + Encum. 10 Chart 4: Food Services (Deli and Catering) net operating income / (loss), which does not include interest, taxes, or CY depreciation. Events (Fund 85) Summary: Events Performance, through September 30, 2024: Month Over Month Comparison:  Net sales total $7,200, a decrease of 68% from August  Operating expenses total $9,299, a decrease of 3% from August  Net operating loss of $2,099, compared to net operating income of $12,933 in August Year Over Year Comparison:  YTD net sales total $190,704, a decrease of $16,854 or 8% compared to last year’s YTD net sales  YTD operating expenses total $88,696, an increase of $8,449 or 11% compared to last year’s YTD operating expenses  YTD net operating income of $102,008, a decrease of $25,303 or 20% compared to last year’s YTD net operating income (30,000.00) (25,000.00) (20,000.00) (15,000.00) (10,000.00) (5,000.00) 0.00 5,000.00 10,000.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Food Services: Net Operating Income / (Loss) 2022 2023 2024 11 Chart 5: Events net operating income / (loss), which does not include interest, taxes, or CY depreciation. Roof Fire Financial Update: • The Foundation has received $80,021 in donations toward the fire through September 30, 2024 (this includes $45,000 from Friends of the Fayetteville Public Library). • Insurance proceeds received through September 30, 2024 total $439,060 ($239,060 passed through the Foundation, and $200,000 passed through the city of Fayetteville). • Fire-related expenses incurred by the library through September 30, 2024 total $784,291. The library expects to pay significant additional expenses, as well as receive additional insurance proceeds. Legal Fees Financial Update: • Donations toward the Act 372 legal fees totaling $22,643 have been received by the Foundation and passed through to the library through September 30, 2024. • Legal expenses incurred by the library through September 30, 2024, total $19,531, leaving $3,112 available to spend. (20,000.00) (10,000.00) 0.00 10,000.00 20,000.00 30,000.00 40,000.00 50,000.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Events: Net Operating Income / (Loss) 2022 2023 2024 12 Preliminary: Subject to Audit Year Ending Year To Date Period Ending Month Ending 12/31/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 ANNUAL BUDGET ORIGINAL BUDGET IN-YEAR BUDGET ADJ Amended Budget YTD Budget YTD ACTUAL ACTUAL ENCUMBRANCES REMAINING BUDGET % Used/Rec'd Revenue Local Tax Support 4882 - Ext. Transfer from City - Millage 5,734,097.00 0.00 5,734,097.00 3,056,218.00 3,063,538.86 146,920.84 0.00 2,670,558 53.4 % Local Tax Support 5,734,097.00 0.00 5,734,097.00 3,056,218.00 3,063,538.86 146,920.84 0.00 2,670,558 53.4 % City of Fayetteville Transfers 4880 - Ext. Transfer from City - Operations 1,812,401.00 0.00 1,812,401.00 1,359,302.00 1,359,300.74 151,033.42 0.00 453,100 75.0 % 4884 - Ext. Transfer from City - Books 654,000.00 0.00 654,000.00 490,500.00 490,500.00 54,500.00 0.00 163,500 75.0 % 4886 - Ext. Transfer from City - Computers 152,000.00 0.00 152,000.00 152,000.00 152,000.00 0.00 0.00 0 100.0 % City of Fayetteville Transfers 2,618,401.00 0.00 2,618,401.00 2,001,802.00 2,001,800.74 205,533.42 0.00 616,600 76.5 % State Aid & Grant Revenue 4010 - State Library Turnback 141,150.00 2.00 141,152.00 105,864.00 125,889.00 42,278.00 0.00 15,263 89.2 % State Aid & Grant Revenue 141,150.00 2.00 141,152.00 105,864.00 125,889.00 42,278.00 0.00 15,263 89.2 % Charges for Services 4202 - Rental Income 28,500.00 0.00 28,500.00 21,375.00 6,707.57 0.00 0.00 21,792 23.5 % 4203 - Nontaxable Rental Fees 0.00 0.00 0.00 0.00 30,255.64 6,780.00 0.00 (30,256)0.0 % 4205 - Copier & Printer Income 3,000.00 0.00 3,000.00 2,250.00 4,096.65 320.65 0.00 (1,097) 136.6 % 4220 - Merchandise Sales 0.00 0.00 0.00 0.00 872.46 75.50 0.00 (872)0.0 % 4240 - Discounts 0.00 0.00 0.00 0.00 (159.77)0.00 0.00 160 0.0 % 4302 - Fees 62,500.00 0.00 62,500.00 46,876.00 64,268.78 4,650.68 0.00 (1,769) 102.8 % 4995 - Cash Over and Short 0.00 0.00 0.00 0.00 (6.11) (11.55)0.00 6 0.0 % Charges for Services 94,000.00 0.00 94,000.00 70,501.00 106,035.22 11,815.28 0.00 (12,035)112.8 % Contributions & Donations 4650 - Contributions - Undesignated 0.00 0.00 0.00 0.00 779.42 53.04 0.00 (779)0.0 % Contributions & Donations 0.00 0.00 0.00 0.00 779.42 53.04 0.00 (779)0.0 % Miscellaneous Revenue 4992 - Misc. Revenue 0.00 0.00 0.00 0.00 (1,322.70) 119.50 0.00 1,323 0.0 % 4993 - Insurance Proceeds 0.00 1,040,000.00 1,040,000.00 1,040,000.00 439,060.18 0.00 0.00 600,940 42.2 % Miscellaneous Revenue 0.00 1,040,000.00 1,040,000.00 1,040,000.00 437,737.48 119.50 0.00 602,263 42.1 % Transfers In 4899 - Ext. Transfer In 118,246.00 0.00 118,246.00 59,123.00 0.00 0.00 0.00 118,246 0.0 % Library Operations Fayetteville Public Library Budget to Actual (Unrestricted) As of September 30, 2024 This report reflects only unrestricted funds within Fund 10.13 Preliminary: Subject to Audit Year Ending Year To Date Period Ending Month Ending 12/31/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 ANNUAL BUDGET ORIGINAL BUDGET IN-YEAR BUDGET ADJ Amended Budget YTD Budget YTD ACTUAL ACTUAL ENCUMBRANCES REMAINING BUDGET % Used/Rec'd Transfers In 118,246.00 0.00 118,246.00 59,123.00 0.00 0.00 0.00 118,246 0.0 % Investment Earnings Investment Income 0.00 0.00 0.00 0.00 41,487.34 3,874.92 0.00 (41,487)0.0 % Total Investment Earnings 0.00 0.00 0.00 0.00 41,487.34 3,874.92 0.00 (41,487)0.0 % Use of Reserves 39,000.00 0.00 39,000.00 39,000.00 0.00 0.00 0.00 39,000 0.0 % Total Revenue 8,744,894.00 1,040,002.00 9,784,896.00 6,372,508.00 5,777,268.06 410,595.00 0.00 4,007,628 59.0 % Expenditures Personnel Services Salary & Wages 5100 - Salaries 1,980,456.00 0.00 1,980,456.00 1,485,351.00 1,564,423.23 176,887.68 0.00 416,033 79.0 % 5102 - Hourly Wages 2,066,897.00 (55,538.00) 2,011,359.00 1,508,517.00 1,208,723.52 138,711.03 0.00 802,635 60.1 % 5103 - Overtime 0.00 0.00 0.00 0.00 19,506.86 1,997.15 0.00 (19,507)0.0 % 5105 - Vacation Pay 0.00 0.00 0.00 0.00 130,823.93 16,204.11 0.00 (130,824)0.0 % 5106 - Sick Pay 0.00 0.00 0.00 0.00 60,253.97 8,386.57 0.00 (60,254)0.0 % 5112 - Holiday Pay 0.00 0.00 0.00 0.00 63,885.95 7,856.40 0.00 (63,886)0.0 % 5113 - Social Security Taxes 307,259.00 2,364.00 309,623.00 232,227.00 219,184.36 25,325.83 0.00 90,439 70.8 % 5115 - Unemployment 7,130.00 0.00 7,130.00 7,130.00 7,142.90 194.13 0.00 (13) 100.2 % 5116 - Workers Compensation 23,000.00 15,400.00 38,400.00 38,400.00 38,368.00 0.00 0.00 32 99.9 % Total Salary & Wages 4,384,742.00 (37,774.00)4,346,968.00 3,271,625.00 3,312,312.72 375,562.90 0.00 1,034,655 76.2 % Employee Benefits 5109 - LT Disability 12,030.00 0.00 12,030.00 9,027.00 (326.58) (38.06)0.00 12,357 (2.7) % 5110 - Salary Contingency 94,040.00 0.00 94,040.00 94,040.00 0.00 0.00 0.00 94,040 0.0 % 5120 - Health Insurance 405,404.00 0.00 405,404.00 304,056.00 263,204.65 28,649.12 0.00 142,199 64.9 % 5121 - Health Savings Account 58,735.00 0.00 58,735.00 44,055.00 38,453.82 4,241.18 0.00 20,281 65.5 % 5122 - Life Insurance 11,812.00 0.00 11,812.00 8,865.00 15,063.72 1,700.20 0.00 (3,252) 127.5 % 5125 - AD&D 1,970.00 0.00 1,970.00 1,485.00 1,725.15 192.17 0.00 245 87.6 % 5135 - Retirement Saving Plan 339,941.00 0.00 339,941.00 254,970.00 241,478.39 27,854.97 0.00 98,463 71.0 % Employee Benefits 923,932.00 0.00 923,932.00 716,498.00 559,599.15 62,599.58 0.00 364,333 60.6 % Total Personnel Services 5,308,674.00 (37,774.00)5,270,900.00 3,988,123.00 3,871,911.87 438,162.48 0.00 1,398,988 73.5 % Library Operations Fayetteville Public Library Budget to Actual (Unrestricted) As of September 30, 2024 This report reflects only unrestricted funds within Fund 10.14 Preliminary: Subject to Audit Year Ending Year To Date Period Ending Month Ending 12/31/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 ANNUAL BUDGET ORIGINAL BUDGET IN-YEAR BUDGET ADJ Amended Budget YTD Budget YTD ACTUAL ACTUAL ENCUMBRANCES REMAINING BUDGET % Used/Rec'd Materials & Supplies 5200 - Office Supplies & Printing 89,660.00 0.00 89,660.00 71,711.00 47,546.22 7,245.54 0.00 42,114 53.0 % 5201 - Small Tools & Equipment 16,500.00 0.00 16,500.00 10,750.00 20,075.76 2,282.68 0.00 (3,576) 121.7 % 5203 - Medical Supplies 4,000.00 0.00 4,000.00 2,600.00 615.59 0.00 0.00 3,384 15.4 % 5210 - Food & Catering for Events 7,465.00 0.00 7,465.00 5,015.00 1,886.90 170.61 0.00 5,578 25.3 % 5218 - Cleaning Supplies 58,000.00 0.00 58,000.00 42,500.00 24,802.11 40.64 337.78 32,860 42.8 % 5220 - Tech Supplies 18,280.00 0.00 18,280.00 14,505.00 13,825.06 1,713.50 0.00 4,455 75.6 % 5224 - Landscape Materials 10,000.00 0.00 10,000.00 5,000.00 1,830.95 664.85 9,947.00 (1,778) 18.3 % 5226 - Merchandise for Resale 500.00 0.00 500.00 500.00 54.82 54.82 0.00 445 11.0 % 5230 - Computer Hardware Supplies 51,000.00 0.00 51,000.00 40,250.00 50,973.04 557.09 0.00 27 99.9 % 5235 - Signage 9,340.00 0.00 9,340.00 9,040.00 1,897.17 407.11 0.00 7,443 20.3 % 5236 - Computer Software - Application 0.00 0.00 0.00 0.00 0.00 0.00 2,000.00 (2,000)0.0 % 5250 - On-line Database 0.00 0.00 0.00 0.00 16,685.95 0.00 0.00 (16,686)0.0 % 5251 - Programming Materials & Supplies 90,470.00 0.00 90,470.00 71,691.00 60,545.01 (10,379.73)0.00 29,925 66.9 % 5252 - Repair Parts & Damaged Repairs 3,250.00 0.00 3,250.00 2,725.00 960.14 11.69 0.00 2,290 29.5 % 5255 - Circulating Equipment 0.00 0.00 0.00 0.00 27.43 0.00 0.00 (27)0.0 % 5258 - Parenting Kit 2,000.00 0.00 2,000.00 1,638.00 2,408.69 477.69 0.00 (409) 120.4 % 5260 - Print Books 376,996.00 1,711.00 378,707.00 320,635.00 232,543.52 33,720.59 0.00 146,163 61.4 % 5265 - E-Book 138,491.00 0.00 138,491.00 113,491.00 126,957.48 13,570.31 0.00 11,534 91.7 % 5270 - E-Book Consortium 0.00 0.00 0.00 0.00 6,505.55 0.00 0.00 (6,506)0.0 % 5280 - Periodicals 7,500.00 0.00 7,500.00 7,500.00 7,113.73 0.00 0.00 386 94.8 % 5285 - Film/DVD 40,260.00 142.00 40,402.00 34,167.00 24,252.96 3,441.50 0.00 16,149 60.0 % 5287 - Audio 10,300.00 51.00 10,351.00 8,479.00 9,834.40 1,950.66 0.00 517 95.0 % 5290 - Music 1,800.00 0.00 1,800.00 1,476.00 471.48 0.00 0.00 1,329 26.2 % 5295 - Gaming Supplies 1,500.00 0.00 1,500.00 1,228.00 698.23 144.86 0.00 802 46.5 % 5900 - Miscellaneous Expense 0.00 0.00 0.00 0.00 4,378.80 0.00 0.00 (4,379)0.0 % 5904 - Incident Repair or Replacement 0.00 1,040,000.00 1,040,000.00 1,040,000.00 755,834.48 95,565.31 41,597.84 242,568 72.7 % Materials & Supplies 937,312.00 1,041,904.00 1,979,216.00 1,804,901.00 1,412,725.47 151,639.72 53,882.62 512,608 71.4 % Services & Charges 5301 - Advertisement 15,970.00 0.00 15,970.00 14,102.00 4,730.64 533.04 0.00 11,239 29.6 % 5303 - Subscriptions, Publications and Dues 103,852.00 13,879.00 117,731.00 92,760.00 52,384.46 6,696.81 38,441.14 26,905 44.5 % 5305 - Postage 20,000.00 0.00 20,000.00 15,002.00 11,267.86 0.00 0.00 8,732 56.3 % 5346 - Drop Box Services 16,800.00 0.00 16,800.00 12,600.00 11,600.00 1,450.00 5,700.00 (500) 69.0 % 5350 - Programming Services 200,744.00 12,300.00 213,044.00 187,769.00 118,658.54 2,850.00 7,600.00 86,785 55.7 % 5358 - Hospitality 1,400.00 0.00 1,400.00 1,100.00 218.10 218.10 0.00 1,182 15.6 % Library Operations Fayetteville Public Library Budget to Actual (Unrestricted) As of September 30, 2024 This report reflects only unrestricted funds within Fund 10.15 Preliminary: Subject to Audit Year Ending Year To Date Period Ending Month Ending 12/31/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 ANNUAL BUDGET ORIGINAL BUDGET IN-YEAR BUDGET ADJ Amended Budget YTD Budget YTD ACTUAL ACTUAL ENCUMBRANCES REMAINING BUDGET % Used/Rec'd 5360 - Mileage Reimbursement 2,100.00 0.00 2,100.00 1,355.00 526.84 0.00 0.00 1,573 25.1 % 5361 - Training & Development 53,947.00 5,600.00 59,547.00 52,774.00 24,793.15 3,371.91 0.00 34,754 41.6 % 5362 - Travel 52,778.00 0.00 52,778.00 46,153.00 33,073.94 771.96 0.00 19,704 62.7 % 5375 - Employee Recognition 8,200.00 0.00 8,200.00 6,050.00 4,696.69 443.21 0.00 3,503 57.3 % 5385 - Board & Volunteer Recognition 4,000.00 0.00 4,000.00 1,100.00 448.92 71.23 0.00 3,551 11.2 % 5390 - Uniform Expense 12,600.00 0.00 12,600.00 9,450.00 8,043.68 1,668.68 0.00 4,556 63.8 % 5424 - Equipment Lease/Rental 181,824.00 0.00 181,824.00 135,865.00 134,867.97 0.00 0.00 46,956 74.2 % 5421 - Insurance - Building 234,200.00 0.00 234,200.00 229,200.00 197,190.23 0.00 0.00 37,010 84.2 % 5422 - Insurance - Liability 22,700.00 0.00 22,700.00 22,700.00 23,508.00 4,117.00 0.00 (808) 103.6 % 5423 - Other Rental 13,200.00 0.00 13,200.00 9,900.00 9,800.00 980.00 0.00 3,400 74.2 % 5394 - Admin & Management Fees 32,800.00 0.00 32,800.00 24,600.00 20,776.30 0.00 0.00 12,024 63.3 % 5395 - Bank Service Charges 28,010.00 0.00 28,010.00 22,610.00 18,335.10 1,872.18 0.00 9,675 65.5 % 5500 - Property Tax Expense 0.00 0.00 0.00 0.00 439.76 439.76 0.00 (440)0.0 % 5905 - Operating Contingency 120,000.00 0.00 120,000.00 120,000.00 0.00 0.00 0.00 120,000 0.0 % Total Services & Charges 1,125,125.00 31,779.00 1,156,904.00 1,005,090.00 675,360.18 25,483.88 51,741.14 429,803 58.4 % 5340 - Audit 62,400.00 0.00 62,400.00 62,400.00 42,500.00 2,500.00 7,500.00 12,400 68.1 % 5341 - Legal 8,000.00 0.00 8,000.00 8,000.00 10,639.50 1,080.00 0.00 (2,640) 133.0 % 5344 - Contract Services 285,804.00 27,548.00 313,352.00 267,722.00 121,923.26 4,526.70 (10,214.79) 201,644 38.9 % Purchased Professional and Technical Ser- vices 356,204.00 27,548.00 383,752.00 338,122.00 175,062.76 8,106.70 (2,714.79)211,404 45.6 % 5310 - Telecommunications 30,000.00 0.00 30,000.00 22,500.00 25,333.19 2,764.26 0.00 4,667 84.4 % 5312 - Natural Gas 57,500.00 0.00 57,500.00 46,000.00 15,492.77 467.55 0.00 42,007 26.9 % 5314 - Electricity 262,000.00 0.00 262,000.00 208,000.00 203,162.95 31,248.09 0.00 58,837 77.5 % 5316 - Municipal Water 13,900.00 0.00 13,900.00 10,950.00 14,903.86 2,005.16 0.00 (1,004) 107.2 % Utilities 363,400.00 0.00 363,400.00 287,450.00 258,892.77 36,485.06 0.00 104,507 71.2 % Services & Charges 1,844,729.00 59,327.00 1,904,056.00 1,630,662.00 1,109,315.71 70,075.64 49,026.35 745,714 58.3 % Maintenance 5401 - Building Maintenance 57,000.00 3,612.00 60,612.00 47,112.00 58,225.44 13,805.74 0.00 2,387 96.1 % 5405 - Landscape Maintenance 4,000.00 0.00 4,000.00 4,000.00 22,369.78 6,973.52 0.00 (18,370) 559.2 % 5410 - Equipment Maintenance 89,455.00 0.00 89,455.00 87,905.00 67,473.86 (69.16)0.00 21,981 75.4 % 5415 - Software Maintenance 1,000.00 0.00 1,000.00 1,000.00 0.00 0.00 0.00 1,000 0.0 % Maintenance 151,455.00 3,612.00 155,067.00 140,017.00 148,069.08 20,710.10 0.00 6,998 95.5 % Transfers Out 6020 - Int. Transfer Out 0.00 75,000.00 75,000.00 37,500.00 0.00 0.00 0.00 75,000 0.0 % Library Operations Fayetteville Public Library Budget to Actual (Unrestricted) As of September 30, 2024 This report reflects only unrestricted funds within Fund 10.16 Preliminary: Subject to Audit Year Ending Year To Date Period Ending Month Ending 12/31/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 ANNUAL BUDGET ORIGINAL BUDGET IN-YEAR BUDGET ADJ Amended Budget YTD Budget YTD ACTUAL ACTUAL ENCUMBRANCES REMAINING BUDGET % Used/Rec'd Transfers Out 0.00 75,000.00 75,000.00 37,500.00 0.00 0.00 0.00 75,000 0.0 % Capital Outlay 534,435.00 44,427.00 578,862.00 530,071.00 418,205.84 28,800.89 0.00 160,656 72.2 % Total Expenditures 8,776,605.00 1,186,496.00 9,963,101.00 8,131,274.00 6,960,227.97 709,388.83 102,908.97 2,899,964 69.9 % Change in Net Assets (31,711.00)(146,494.00)(178,205.00)(1,758,766.00)(1,182,959.91)(298,793.83)(102,908.97)1,107,664 663.8 % Library Operations Fayetteville Public Library Budget to Actual (Unrestricted) As of September 30, 2024 This report reflects only unrestricted funds within Fund 10.17 Fund: Food Services Fayetteville Public Library Summary Income Statement Fayetteville Public Library As of September 30, 2024 Reporting Book:ACCRUAL As of Date:09/30/2024 Restriction:Unrestricted Unaudited Financial Statement 01/01/2024 Through Month Ending 01/01/2023 Through Q1 2024 Q2 2024 07/31/2024 08/31/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2023 Actuals Actuals Actuals Actuals Actuals YTD Actuals MOM Difference MOM variance PYTD Actual YOY Difference YTD Variance Operating Revenue Charges for Services 4202 - Rental Income 20.00 0.00 0.00 0.00 0.00 20.00 0.00 0 %1,354.00 (1,334.00) (99) % 4203 - Nontaxable Rental Fees 0.00 0.00 2,600.00 0.00 644.25 3,244.25 644.25 (100) %0.00 3,244.25 (100) % 4230 - Sales - Non-Alcoholic Beverage 5,012.48 5,316.55 1,789.11 1,741.30 1,143.85 15,003.29 (597.45) (34) %18,115.81 (3,112.52) (17) % 4233 - Sales - Alcoholic Beverage 42.88 0.00 0.00 0.00 0.00 42.88 0.00 0 %0.00 42.88 (100) % 4235 - Sales - Food 42,026.18 41,479.68 14,614.44 13,376.18 8,551.36 120,047.84 (4,824.82) (36) %142,992.98 (22,945.14) (16) % 4238 - Sales - Catering 8,200.00 6,806.00 347.21 300.00 2,939.75 18,592.96 2,639.75 880 %46,291.54 (27,698.58) (60) % 4240 - Discounts (207.30) (123.31) (55.44) (110.66) 1,821.23 1,324.52 1,931.89 1,746 %(1,010.03) 2,334.55 231 % 4245 - Comps (121.05) (49.54) (35.12) (34.09) (384.94) (624.74) (350.85) (1,029) %(425.56) (199.18) (47) % 4995 - Cash Over and Short 7.86 29.45 1.95 0.00 0.00 39.26 0.00 0 %6.35 32.91 518 % Miscellaneous Revenue 167.77 150.20 54.98 51.12 106.13 530.20 55.01 108 %481.04 49.16 10 % Total Operating Revenue 55,148.82 53,609.03 19,317.13 15,323.85 14,821.63 158,220.46 (502.22) (3) %207,806.13 (49,585.67) (24) % Cost of Goods Sold 5600 - COGS - Food 18,013.29 21,662.77 7,057.88 6,679.79 7,447.78 60,861.51 767.99 11 %85,819.35 (24,957.84) (29) % 5620 - COGS - Catering 5,406.94 1,354.02 0.00 0.00 1,514.73 8,275.69 1,514.73 100 %6,510.87 1,764.82 27 % 5640 - COGS - Non-Alcoholic Beverage 1,260.69 1,530.46 732.13 525.92 382.90 4,432.10 (143.02) (27) %5,393.81 (961.71) (18) % 5660 - COGS - Alcohol 163.80 0.00 0.00 0.00 0.00 163.80 0.00 0 %0.00 163.80 100 % 5680 - COGS - Packaging 3,393.01 4,915.05 428.04 1,555.09 907.48 11,198.67 (647.61) (42) %17,324.37 (6,125.70) (35) % Cost of Goods Sold 28,237.73 29,462.30 8,218.05 8,760.80 10,252.89 84,931.77 1,492.09 17 %115,048.40 (30,116.63) (26) % Gross Profit 26,911.09 24,146.73 11,099.08 6,563.05 4,568.74 73,288.69 (1,994.31) (30) %92,757.73 (19,469.04) (21) % Gross Margin 48.80 % 45.04 % 57.46 % 42.83 % 30.82 % 46.32 % (12.01) % (28) %44.64 % 1.68 % 4 % Operating Expenses Personnel Services Salary & Wages 39,063.31 36,148.80 11,992.28 15,234.61 13,893.65 116,332.65 (1,340.96) (9) %107,568.87 8,763.78 8 % Employee Benefits 6,046.37 5,632.39 2,145.04 2,817.01 2,541.39 19,182.20 (275.62) (10) %8,937.08 10,245.12 115 % Total Personnel Services 45,109.68 41,781.19 14,137.32 18,051.62 16,435.04 135,514.85 (1,616.58) (9) %116,505.95 19,008.90 16 % Material & Supplies 3,936.63 286.63 16.13 159.09 0.00 4,398.48 (159.09) (100) %8,462.49 (4,064.01) (48) % Services & Charges 5303 - Subscriptions, Publications and Dues 145.00 206.56 198.00 206.56 99.00 855.12 (107.56) (52) %409.84 445.28 109 % 5350 - Programming Services 0.00 0.00 42.50 0.00 0.00 42.50 0.00 0 %0.00 42.50 100 % 5361 - Training & Development 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 %52.94 (52.94) (100) % 5390 - Uniform Expense 632.74 1,173.04 323.84 566.72 569.92 3,266.26 3.20 1 %1,964.00 1,302.26 66 % 5395 - Bank Service Charges 1,960.20 1,776.20 602.49 558.63 421.77 5,319.29 (136.86) (24) %6,023.67 (704.38) (12) % 5500 - Property Tax Expense 0.00 3,783.15 0.00 (3,783.15) 0.00 0.00 3,783.15 100 %0.00 0.00 0 % 5344 - Contract Services 0.00 0.00 0.00 329.25 70.00 399.25 (259.25) (79) %998.33 (599.08) (60) % Services & Charges 2,737.94 6,938.95 1,166.83 (2,121.99) 1,160.69 9,882.42 3,282.68 155 %9,448.78 433.64 5 % Total Operating Expenses 51,784.25 49,006.77 15,320.28 16,088.72 17,595.73 149,795.75 1,507.01 9 %134,417.22 15,378.53 11 % Net Operating Income (Loss)(24,873.16) (24,860.04) (4,221.20) (9,525.67) (13,026.99) (76,507.06) (3,501.32) (37) %(41,659.49) (34,847.57) (84) % Nonoperating revenues (expenses)(792.29) (760.64) (277.67) (269.15) (298.30) (2,398.05) (29.15) (11) %350.79 (2,748.84) (784) % Net Income (Loss)(25,665.45) (25,620.68) (4,498.87) (9,794.82) (13,325.29) (78,905.11) (3,530.47) (36) %(41,308.70) (37,596.41) (91) % Year To Date 09/30/2024 18 Preliminary: Subject to Audit 10--Library Operations 15--Expansion - Operations 20--Long Term - Reserve 30--Facility Reserve 40--Furniture & Equipment Reserve 50--Technology Equipment Reserve 70--Bond Debt Service Fund 80--Food Services 85--Events All Funds Year Ending Year To Date 12/31/2024 Remaining Budget Amended Budget YTD Actual YTD Actual YTD Actual YTD Actual YTD Actual YTD Actual YTD Actual YTD Actual YTD Actual YTD Actual Includes Encumbrance Revenue Local Tax Support 8,543,097.00 3,063,538.86 0.00 0.00 0.00 0.00 0.00 1,470,496.37 0.00 0.00 4,534,035.23 4,009,061.77 City of Fayetteville Transfers 2,618,401.00 2,001,800.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,001,800.74 616,600.26 State Aid & Grant Revenue 619,584.00 538,705.91 0.00 0.00 0.00 0.00 0.00 0.00 159,235.70 0.00 697,941.61 (78,357.61) Charges for Services 702,000.00 106,035.22 0.00 0.00 0.00 0.00 0.00 0.00 157,690.26 190,707.22 454,432.70 247,567.30 Contributions & Donations 4,000.00 106,582.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 106,582.25 (102,582.25) Miscellaneous Revenue 1,040,000.00 437,893.43 0.00 0.00 0.00 0.00 0.00 0.00 530.20 (3.26)438,420.37 601,579.63 Transfers In 468,246.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 468,246.00 Investment Earnings Investment Income 0.00 41,487.34 21,266.14 30,728.90 19,938.10 6,987.35 6,959.17 0.00 286.65 0.00 127,653.65 (127,653.65) Gain/Loss - Realized 0.00 0.00 0.00 0.00 0.00 (2.26)0.00 0.00 0.00 0.00 (2.26)2.26 Gain/Loss - Unrealized 0.00 0.00 0.00 34,985.45 27,755.13 3,222.61 6,640.30 0.00 0.00 0.00 72,603.49 (72,603.49) Investment Management Fees & Expenses 0.00 0.00 0.00 (3,205.00)(2,419.00)(510.00)(811.00)0.00 0.00 0.00 (6,945.00)6,945.00 Total Investment Earnings 0.00 41,487.34 21,266.14 62,509.35 45,274.23 9,697.70 12,788.47 0.00 286.65 0.00 193,309.88 (193,309.88) Use of Reserves 189,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 189,000.00 Total Revenue 14,184,328.00 6,296,043.75 21,266.14 62,509.35 45,274.23 9,697.70 12,788.47 1,470,496.37 317,742.81 190,703.96 8,426,522.78 5,757,805.22 Expenditures Personnel Services Salary & Wages 4,913,854.00 3,432,316.67 0.00 0.00 0.00 0.00 0.00 0.00 142,926.73 70,462.96 3,645,706.36 1,268,147.64 Employee Benefits 1,013,771.00 576,804.92 0.00 0.00 0.00 0.00 0.00 0.00 25,545.77 7,306.69 609,657.38 404,113.62 Total Personnel Services 5,927,625.00 4,009,121.59 0.00 0.00 0.00 0.00 0.00 0.00 168,472.50 77,769.65 4,255,363.74 1,672,261.26 Materials & Supplies 2,514,580.00 1,460,464.67 0.00 0.00 0.00 0.00 2,141.22 0.00 138,264.13 1,527.67 1,602,397.69 827,776.20 Services & Charges 2,245,352.00 1,277,471.56 0.00 0.00 0.00 0.00 0.00 0.00 17,232.42 9,398.25 1,304,102.23 887,288.42 Maintenance 161,545.00 153,928.96 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 153,928.96 7,616.04 Transfers Out 3,084,000.00 0.00 0.00 0.00 0.00 0.00 0.00 1,470,496.37 0.00 0.00 1,470,496.37 1,613,503.63 Capital Outlay 2,069,436.00 591,037.30 0.00 0.00 159,104.78 0.00 243,569.92 0.00 48,304.26 2,739.63 1,044,755.89 220,314.30 Total Expenditures 16,002,538.00 7,492,024.08 0.00 0.00 159,104.78 0.00 245,711.14 1,470,496.37 372,273.31 91,435.20 9,831,044.88 5,228,759.85 Change in Net Assets (1,818,210.00)(1,195,980.33)21,266.14 62,509.35 (113,830.55)9,697.70 (232,922.67)0.00 (54,530.50)99,268.76 (1,404,522.10)529,045.37 Library Fayetteville Public Library Summarized Budget to Actual As of September 30, 2024 Filter tab and prompt selections: As of date: 09/30/2024 ; Department: All; Include subdimensions: Off; Hide inactives: Off ; Fund: Library; Include subdimensions: Off; Hide inactives: Off ; Client or Donor: All; Include subdimensions: Off ; Client or Donor type: All; Include subdimensions: Off ; Vendor: All; Include subdimensions: Off ; Vendor type: All; Include subdimensions: Off ; Employee: All; Include subdimensions: Off ; Employee type: All; Include subdimensions: Off ; Item: All ; Product line: All; Include subdimensions: Off ; Restriction: All; Include subdimensions: Off ; Project: All; Include subdimensions: Off ; Project type: All; Include subdimensions: Off ; Created on 10/08/2024, 1:29 PM CDT Page 1 19 Preliminary: Subject to Audit 10--Library Operations 15--Expansion - Operations 20--Long Term - Reserve 30--Facility Reserve 40--Furniture & Equipment Reserve 50--Technology Equipment Reserve 60--Capital Construction Fund 70--Bond Debt Service Fund 80--Food Services 85--Events All Funds Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 Assets Cash & Investments 1003 - Petty Cash 3,074 0 0 0 0 0 0 0 675 0 3,749 1009 - Bank of Fayetteville - FPL 77,054 0 0 0 0 0 0 0 0 (274)76,780 1020 - Arvest - Library Operations 457,741 0 0 0 0 0 0 0 0 1,333 459,073 1030 - First Security - FPL 250,731 0 0 0 0 0 0 0 0 0 250,732 1050 - Arvest - Food Services 0 0 0 0 0 0 0 0 68,207 0 68,207 1100 - Schwab FPL - Operating 682,914 0 0 0 0 0 0 0 0 0 682,913 1105 - Schwab FPL - Expansion O&M 0 641,476 0 0 0 0 0 0 0 0 641,477 1110 - Schwab FPL - Long Term 0 0 1,767,917 0 0 0 0 0 0 0 1,767,917 1115 - Schwab FPL - Facilities Replace- ment 0 0 0 1,243,020 0 0 0 0 0 0 1,243,020 1120 - Schwab FPL - Furniture & Equip.0 0 0 0 281,207 0 0 0 0 0 281,207 1125 - Schwab FPL - Technology 0 0 0 0 0 261,770 0 0 0 0 261,771 1130 - Schwab FPL - Expansion Capital 0 0 0 0 0 0 4 0 0 0 4 Total Cash & Investment 1,471,514 641,476 1,767,917 1,243,020 281,207 261,770 4 0 68,882 1,059 5,736,850 Receivables 1200 - Claims Pending 23 0 0 0 0 0 0 0 24 0 47 1240 - Accounts Receivable 15,491 0 0 0 0 0 0 0 11,604 83,733 110,830 1243 - Grants Receivable 26,978 0 0 0 0 0 0 0 9,512 0 36,490 1260 - Payroll Tax Refund Receivable (793)0 0 0 0 0 0 0 0 0 (794) 1265 - Sales Tax Rebate Receivable 3,689 0 0 0 0 0 0 0 0 0 3,689 1270 - Due From Other Funds 238,767 0 76,241 4,802 0 128,726 0 0 2,292 49 450,876 1271 - Due From Other Governments (Millage & Debt Service) 6,308,340 0 0 0 0 0 0 3,028,003 0 0 9,336,343 1275 - 10 Due From 91 356,056 0 0 0 0 0 0 0 0 0 356,056 1277 - 10 Due From 96 2,660 0 0 0 0 0 0 0 0 0 2,661 1279 - 10 Due From 80 581,114 0 0 0 0 0 0 0 0 0 581,113 1280 - 80 Due From 10 0 0 0 0 0 0 0 0 289,357 0 289,357 1281 - 10 Due From 85 416,091 0 0 0 0 0 0 0 0 0 416,091 1282 - 85 Due From 10 0 0 0 0 0 0 0 0 0 634,291 634,291 1285 - 80 Due From 85 0 0 0 0 0 0 0 0 1,844 0 1,844 1286 - 85 Due From 80 0 0 0 0 0 0 0 0 0 8,520 8,520 1400 - Interfund (1,232,239) 3,899,883 (1,115,401)3,787 43,382 365,371 (192,504) (1,772,279)0 0 0 Total Receivables 6,716,177 3,899,883 (1,039,160)8,589 43,382 494,097 (192,504)1,255,724 314,633 726,593 12,227,414 Prepaid Expenses 1500 - Prepaid Expenses 127,082 0 0 0 0 0 0 0 0 0 127,082 Prepaid Expenses 127,082 0 0 0 0 0 0 0 0 0 127,082 Fixed Assets Depreciable Assets 1801 - Building 22,179,727 0 0 0 0 0 0 0 0 0 22,179,727 1802 - Vehicles 83,458 0 0 0 0 0 0 0 0 0 83,458 1805 - Software 312,125 0 0 0 0 0 0 0 0 0 312,125 1811 - Books & Publications 7,001,437 0 0 0 0 0 0 0 0 0 7,001,437 1813 - Equipment 3,386,541 0 0 0 0 0 0 0 0 0 3,386,541 1815 - Furniture & Fixtures 66,653 0 0 0 0 0 0 0 0 60,681 127,334 1890 - Construction In Progress (CIP)93,115 0 0 0 0 0 0 0 0 0 93,115 1999 - Accumulated Depreciation (16,982,629)0 0 0 0 0 0 0 0 (12,280) (16,994,910) Total Depreciable Assets 16,140,427 0 0 0 0 0 0 0 0 48,401 16,188,827 Non Depreciable Assets 1,605,676 0 0 0 0 0 0 0 0 0 1,605,676 Library Balance Sheet Fayetteville Public Library Created on 10/08/2024, 1:29 PM CDT Page 1 20 Preliminary: Subject to Audit 10--Library Operations 15--Expansion - Operations 20--Long Term - Reserve 30--Facility Reserve 40--Furniture & Equipment Reserve 50--Technology Equipment Reserve 60--Capital Construction Fund 70--Bond Debt Service Fund 80--Food Services 85--Events All Funds Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 Total Fixed Assets, Net 17,746,103 0 0 0 0 0 0 0 0 48,401 17,794,503 Total Assets $ 26,060,876 $ 4,541,359 $ 728,757 $ 1,251,609 $ 324,589 $ 755,867 $ (192,500)$ 1,255,724 $ 383,515 $ 776,053 $ 35,885,849 Liabilities and Fund Balances Liabilities Accounts Payable 2001 - Accounts Payable 77,375 0 0 0 0 0 0 0 5,096 0 82,470 2004 - Friends of FPL Pass through (1,224)0 0 0 0 0 0 0 0 0 (1,223) 2005 - FDN Designated Pass Through to FPL (200,316)0 0 0 0 0 0 0 0 0 (200,316) 2007 - FPL CentreSuite (2,440)0 0 0 0 0 0 0 0 0 (2,440) 2099 - AR State Library Scholarship Pass Through 793 0 0 0 0 0 0 0 0 0 793 2415 - Security Deposits 4,298 0 0 0 0 0 0 0 0 51,100 55,398 2414 - Convenience Fee 57 0 0 0 0 0 0 0 0 0 57 2020 - Accrued Accounts Payable 126,098 0 0 0 0 0 0 0 0 0 126,098 Total Accounts Payable 4,641 0 0 0 0 0 0 0 5,096 51,100 60,837 Salaries & Benefits Payable 2125 - Accrued Salaries & Wages 91,558 0 0 0 0 0 0 0 3,763 1,645 96,965 2130 - Vision Insurance 549 0 0 0 0 0 0 0 0 0 549 2135 - Life, AD&D and LTD 4,982 0 0 0 0 0 0 0 0 0 4,982 2140 - Voluntary Life, STD & AD&D 53 0 0 0 0 0 0 0 0 0 53 2145 - Accrued Vacation 262,782 0 0 0 0 0 0 0 3,661 2,246 268,690 2148 - Supplemental Insurance - EE paid 257 0 0 0 0 0 0 0 0 0 257 2150 - Retirement Contributions 84 0 0 0 0 0 0 0 0 0 85 2154 - Federal Withholding Payable 1,068 0 0 0 0 0 0 0 0 0 1,068 2155 - Voluntary Dental Insurance 2,504 0 0 0 0 0 0 0 0 0 2,503 2160 - Accrued Sick Time 110,771 0 0 0 0 0 0 0 0 819 111,590 2165 - FICA Payable (1,106)0 0 0 0 0 0 0 0 0 (1,106) 2175 - Health Insurance Liability 46,897 0 0 0 0 0 0 0 0 0 46,897 2178 - State Withholding Payable 525 0 0 0 0 0 0 0 0 0 525 2183 - State Unemployment 426 0 0 0 0 0 0 0 0 0 426 2185 - Medical Reimbursement 500 0 0 0 0 0 0 0 0 0 500 2194 - AD&D Insurance (1,540)0 0 0 0 0 0 0 0 0 (1,540) 2195 - Capital Campaign Liability 247 0 0 0 0 0 0 0 0 0 247 2196 - Caring Committee (2,743)0 0 0 0 0 0 0 0 0 (2,742) 2197 - Healthy Habits 4,270 0 0 0 0 0 0 0 0 0 4,269 Total Salaries & Benefits Payable 522,084 0 0 0 0 0 0 0 7,424 4,710 534,218 Other Payables 2056 - HMR Tax 0 0 0 0 0 0 0 0 511 0 511 2057 - Sales Tax (1)0 0 0 0 0 0 0 1,788 (169)1,618 Total Other Payables (1)0 0 0 0 0 0 0 2,299 (169)2,129 Deferred Revenue 2410 - Deferred Revenue 366,254 0 0 0 0 0 0 0 0 0 366,255 Library Balance Sheet Fayetteville Public Library Created on 10/08/2024, 1:29 PM CDT Page 2 21 Preliminary: Subject to Audit 10--Library Operations 15--Expansion - Operations 20--Long Term - Reserve 30--Facility Reserve 40--Furniture & Equipment Reserve 50--Technology Equipment Reserve 60--Capital Construction Fund 70--Bond Debt Service Fund 80--Food Services 85--Events All Funds Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 09/30/2024 2411 - Gift Cards 0 0 0 0 0 0 0 0 1,088 0 1,087 Total Deferred Revenue 366,254 0 0 0 0 0 0 0 1,088 0 367,342 Due to Other Funds Due to Foundation 40,806 0 0 0 0 0 0 0 0 0 40,806 Due to Library 0 0 0 0 0 0 0 0 581,114 416,091 997,205 Due to Others 206,595 0 0 68,517 0 92,671 77,580 0 3,160 12 448,535 Due to Food Services 289,357 0 0 0 0 0 0 0 0 1,844 291,200 Internal Due To 634,291 0 0 0 0 0 0 0 8,521 0 642,812 Total Due to Other Funds 1,171,049 0 0 68,517 0 92,671 77,580 0 592,795 417,947 2,420,558 Total Liabilities 2,064,027 0 0 68,517 0 92,671 77,580 0 608,702 473,588 3,385,084 Fund Balance 23,996,849 4,541,359 728,757 1,183,092 324,589 663,196 (270,080)1,255,724 (225,187)302,465 32,500,765 Total Liabilities and Fund Balances $ 26,060,876 $ 4,541,359 $ 728,757 $ 1,251,609 $ 324,589 $ 755,867 $ (192,500)$ 1,255,724 $ 383,515 $ 776,053 $ 35,885,849 Library Balance Sheet Fayetteville Public Library Created on 10/08/2024, 1:29 PM CDT Page 3 22 Fayetteville Public Library Foundation General Fund Highlight of Revenue and Expenditures (Preliminary: Subject to Audit) For Month Ended August 31, 2024 This is a summary report focused primarily on Fund 91 (Operations) and Fund 96 (Capital Campaign). Budget Threshold: The percentage of revenue collected, and budget spent should be approximately 67%. Operating (Fund 91) Unrestricted Revenue: • Revenue collected in the month of August 2024 was $53,771. • Revenue collected YTD through August 31, 2024, totals $555,601, which is significantly above target (by $228,105 or 70%), due to approx. $239k in insurance proceeds received in June related to the fire. Without the insurance proceeds, revenue collected YTD totals $316,541, which is $10,955 or 3% below target. Lease income and event revenue are approx. $20k over budget, bolstering annual fund and event sponsorships, which are approx. $34k under budget. Chart reflects actual revenue collection compared to year-to-date budget. Chart reflects only annual renewals and outright gifts revenue recorded in GL account 4012 (Annual Fund). $134,868 $100,672 $7,925 $44,107 $239,060 0 50,000 100,000 150,000 200,000 250,000 300,000 Lease Income Annual Fund Event Revenue Event Sponsorship Miscellaneous Revenue Revenue Collection: YTD Budget to Actual YTD Budget YTD Actual Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 $7,005 $11,105 $2,247 $2,837 ($1,772)$643 $6,483 $2,358 $1,983 $2,388 $1,653 $9,993 2021 $8,038 $2,063 $5,013 $1,250 $11,747 $6,882 $1,567 $3,350 $5,902 $4,393 $7,976 $31,072 2022 $13,360 $1,404 $9,764 $16,257 $6,781 $7,462 $18,638 $5,729 $4,571 $8,076 $17,826 $30,429 2023 $7,793 $15,688 $5,068 $41,386 $9,790 $5,720 $35,208 $4,015 $17,143 $14,332 $22,078 $50,744 2024 $21,419 $3,493 $22,151 $28,930 $14,345 $3,753 $3,626 $2,956 ($10,000) $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Annual Renewals and Outright Gifts 5-Year Trend 23 Chart reflects a 3-year trend of unrestricted operating revenue (excludes lease income and transfers). Operating (Fund 91) Unrestricted Expenditures: • Year-to-date expenses through August 31, 2024, total $569,246. • Overall, spending is more than planned (by $187,608 or 49%). However, this includes approx. $239k in fire-related expenditures for the pass-through of insurance proceeds to the library. Without the fire-related expenditures, spending is less than planned (by $51,688 or 14%). Operating (Fund 91) Balance Sheet Highlights: • Liabilities total $864,592 as of August 31, 2024. The balance primarily consists of payables (totaling $548,950) due to the library (however, this is offset by $37,908 due from the library). Liabilities increased by $16,908 or 2% due largely to designated gifts received totaling approx. $8k which will be passed through to the library (for fire-related expenditures, True Lit, and Maker Faire), and allocations of personnel costs & benefits totaling approx. $6k. 0.00 10,000.00 20,000.00 30,000.00 40,000.00 50,000.00 60,000.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Operating Revenue: 4-Year Trend 2021 2022 2023 2024 $151,344 $6,050 $67,490 $36,874 $119,880 $151,248 $241,176 $51,209 $16,596 $109,017 0 50,000 100,000 150,000 200,000 250,000 300,000 Personnel Materials & Supplies Services & Charges Maintenance Capital Outlay Debt Service Expenses YTD Budget vs. Actual YTD Budget YTD Actual 24 Capital Campaign (Fund 96) Balance Sheet Highlights: • Pledge receivable balance decreased by $1,420 compared to last month due to pledge payments collected. • Long-term debt balance decreased by $23,000 compared to last month due to principal payments made. Chart 6: Shows the shortfall between Long term debt and pledge receivables designated to the building expansion. Roof Fire Financial Update: • The Foundation has received $77,021 in donations toward the fire through August 31, 2024 (this includes $45,000 from Friends of the Fayetteville Public Library). • The Foundation has also received $239,060 in insurance proceeds through August 31, 2024, and has passed those funds to the library. (The library has also received $200,000 in insurance proceeds from the city of Fayetteville). • Fire-related expenses incurred by the Foundation through August 31, 2024 (excluding bank fees on the donations) total $714 ($479 in personnel expenses and $235 in other fire-related expenses). Legal Fees Financial Update: • Donations toward the Act 372 legal fees totaling $22,643 have been received by the Foundation and passed through to the library through August 31, 2024. • Legal expenses incurred by the library through August 31, 2024, total $19,387, leaving $3,256 available to spend. 3,667,547 1,194,309 -2,473,238($3,000,000) ($2,000,000) ($1,000,000) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 Aug-2024 Capital Campaign Shortfall Comparison: LT Debt vs. Pledge Receivable Note : Chart does not reflects revenue received from land sale, $544,700, as this revenue will be collected over a 5-year span LT Debt Balances Pledge Receivable (Fund 96) Short Fall 25 Preliminary: Subject to Audit 08/31/2024 ANNUAL BUDGET ORIGINAL BUDGET IN-YEAR BUDGET ADJ Amended Budget YTD Budget YTD ACTUAL CURRENT MONTH ACTUAL REMAINING BUDGET % COLLECTED/ SPENT Revenue 4201 - Lease Income 179,824.00 0.00 179,824.00 119,884.00 134,867.97 44,955.99 44,956 75.0 % Operating Revenue 4012 - Annual Fund 176,120.00 0.00 176,120.00 117,416.00 100,672.32 2,955.75 75,448 57.2 % 4019 - Event Revenue 2,755.00 0.00 2,755.00 2,755.00 7,924.56 0.00 (5,170) 287.6 % 4020 - Event Sponsorships 60,925.00 0.00 60,925.00 60,925.00 44,107.41 1,000.00 16,818 72.4 % Miscellaneous Revenue 0.00 0.00 0.00 0.00 239,060.18 0.00 (239,060)0.0 % Investment Earnings 39,949.00 0.00 39,949.00 26,516.00 28,968.62 4,858.88 10,980 72.5 % Total Revenue 459,573.00 0.00 459,573.00 327,496.00 555,601.06 53,770.62 (96,028)120.9 % Expenditures Salary & Wages 182,056.00 0.00 182,056.00 121,368.00 124,001.27 16,533.56 58,055 68.1 % Employee Benefits 44,963.00 0.00 44,963.00 29,976.00 27,246.94 3,634.39 17,716 60.6 % Total Personnel Services 227,019.00 0.00 227,019.00 151,344.00 151,248.21 20,167.95 75,771 66.6 % Materials & Supplies 5200 - Office Supplies & Printing 1,500.00 0.00 1,500.00 1,050.00 1,070.13 199.62 430 71.3 % 5210 - Food & Catering for Events 3,250.00 0.00 3,250.00 3,000.00 536.85 0.00 2,713 16.5 % 5235 - Signage 2,000.00 0.00 2,000.00 2,000.00 273.91 0.00 1,726 13.7 % 5904 - Incident Repair or Replacement 0.00 0.00 0.00 0.00 239,295.05 0.00 (239,295)0.0 % Materials & Supplies 6,750.00 0.00 6,750.00 6,050.00 241,175.94 199.62 (234,426)3,573.0 % Services & Charges 5301 - Advertisement 7,200.00 0.00 7,200.00 3,800.00 3,165.02 0.00 4,035 44.0 % 5303 - Subscriptions, Publications and Dues 1,300.00 0.00 1,300.00 1,200.00 502.95 0.00 797 38.7 % FDN Operations Fayetteville Public Library Foundation Summarized Unrestricted Budget to Actual As of August 31, 2024 All Projects Filter tab and prompt selections: As of date: 08/31/2024 ; Department: All; Include subdimensions: Off; Hide inactives: Off ; Fund: FDN Operations; Include subdimensions: Off; Hide inactives: Off ; Client or Donor: All; Include subdimensions: Off ; Client or Donor type: All; Include subdimensions: Off ; Vendor: All; Include subdimensions: Off ; Vendor type: All; Include subdimensions: Off ; Employee: All; Include subdimensions: Off ; Employee type: All; Include subdimensions: Off ; Item: All ; Product line: All; Include subdimensions: Off ; Restriction: U--Unrestricted; Include subdimensions: Off ; Project: All Projects--All Projects; Include subdimensions: Off ; Project type: All; Include subdimensions: Off ; 26 Preliminary: Subject to Audit 08/31/2024 ANNUAL BUDGET ORIGINAL BUDGET IN-YEAR BUDGET ADJ Amended Budget YTD Budget YTD ACTUAL CURRENT MONTH ACTUAL REMAINING BUDGET % COLLECTED/ SPENT 5305 - Postage 20,000.00 0.00 20,000.00 5,000.00 714.61 0.00 19,285 3.6 % 5357 - Donor Cultivation 3,700.00 0.00 3,700.00 2,200.00 1,029.09 0.00 2,671 27.8 % 5361 - Training & Development 6,000.00 0.00 6,000.00 4,500.00 5,189.88 635.40 810 86.5 % 5362 - Travel 4,500.00 0.00 4,500.00 4,500.00 5,487.60 0.00 (988) 121.9 % 5368 - Event Cost 25,000.00 0.00 25,000.00 20,000.00 11,475.36 0.00 13,525 45.9 % 5385 - Board & Volunteer Recognition 1,500.00 0.00 1,500.00 500.00 354.53 249.50 1,145 23.6 % 5422 - Insurance - Liability 4,500.00 0.00 4,500.00 2,000.00 5,740.50 0.00 (1,241) 127.6 % 5423 - Other Rental 9,000.00 0.00 9,000.00 4,500.00 6,750.00 0.00 2,250 75.0 % 5395 - Bank Service Charges 3,000.00 0.00 3,000.00 2,000.00 1,537.79 36.16 1,462 51.3 % 5340 - Audit 12,800.00 0.00 12,800.00 12,290.00 8,499.52 0.00 4,300 66.4 % 5341 - Legal 2,000.00 0.00 2,000.00 1,500.00 0.00 0.00 2,000 0.0 % 5344 - Contract Services 2,500.00 0.00 2,500.00 2,000.00 762.12 533.90 1,738 30.5 % 5310 - Telecommunications 3,000.00 0.00 3,000.00 1,500.00 0.00 0.00 3,000 0.0 % Services & Charges 106,000.00 0.00 106,000.00 67,490.00 51,208.97 1,454.96 54,791 48.3 % Debt Service 179,824.00 0.00 179,824.00 119,880.00 109,016.56 12,506.99 70,807 60.6 % Misc. Expense 294,245.00 (294,245.00)0.00 0.00 0.00 0.00 0 0.0 % Capital Outlay 5828 - Software Expense (Capitalized)44,260.00 0.00 44,260.00 36,874.00 16,595.87 1,000.00 27,664 37.5 % Capital Outlay 44,260.00 0.00 44,260.00 36,874.00 16,595.87 1,000.00 27,664 37.5 % Total Expenditures 858,098.00 (294,245.00)563,853.00 381,638.00 569,245.55 35,329.52 (5,393)101.0 % Change in Net Assets (398,525.00)294,245.00 (104,280.00)(54,142.00)(13,644.49)18,441.10 (90,636)13.1 % FDN Operations Fayetteville Public Library Foundation Summarized Unrestricted Budget to Actual As of August 31, 2024 All Projects Filter tab and prompt selections: As of date: 08/31/2024 ; Department: All; Include subdimensions: Off; Hide inactives: Off ; Fund: FDN Operations; Include subdimensions: Off; Hide inactives: Off ; Client or Donor: All; Include subdimensions: Off ; Client or Donor type: All; Include subdimensions: Off ; Vendor: All; Include subdimensions: Off ; Vendor type: All; Include subdimensions: Off ; Employee: All; Include subdimensions: Off ; Employee type: All; Include subdimensions: Off ; Item: All ; Product line: All; Include subdimensions: Off ; Restriction: U--Unrestricted; Include subdimensions: Off ; Project: All Projects--All Projects; Include subdimensions: Off ; Project type: All; Include subdimensions: Off ; 27 Preliminary: Subject to Audit 90--FDN Shively 91--FDN Operations 92--FDN Otwell 93--FDN NEH 94--FDN Walker/Tyson 95--FDN Anonymous 96--FDN Capital Campaign All Funds Year Ending 12/31/2024 08/31/2024 08/31/2024 08/31/2024 08/31/2024 08/31/2024 08/31/2024 08/31/2024 08/31/2024 Board Approved Amended Budget Current Month Actual YTD Actual YTD Actual YTD Actual YTD Actual YTD Actual YTD Actual YTD Actual YTD Actual Revenue State Aid & Grant Revenue 0.00 0.00 0.00 0.00 234,286.30 0.00 0.00 0.00 0.00 0.00 234,286.30 Charges for Services 179,824.00 179,824.00 44,955.99 0.00 134,867.97 0.00 0.00 0.00 0.00 0.00 134,867.97 Contributions & Donations 0.00 0.00 2,618.39 0.00 0.00 0.00 0.00 0.00 0.00 184,888.91 184,888.91 Operating Revenue 239,800.00 239,800.00 3,955.75 0.00 152,704.29 0.00 0.00 0.00 0.00 0.00 152,704.29 Miscellaneous Revenue 0.00 0.00 0.00 0.00 239,060.18 0.00 0.00 0.00 0.00 0.00 239,060.18 Investment Earnings 54,338.00 54,338.00 109,613.55 163.09 28,968.62 17,123.49 270,384.96 26,947.26 56,544.58 43,232.62 443,364.62 Total Revenue 473,962.00 473,962.00 161,143.68 163.09 789,887.36 17,123.49 270,384.96 26,947.26 56,544.58 228,121.53 1,389,172.27 Expenditures Personnel Services Salary & Wages 182,056.00 182,056.00 16,533.56 0.00 124,001.27 0.00 0.00 0.00 0.00 0.00 124,001.27 Employee Benefits 44,963.00 44,963.00 3,634.39 0.00 27,246.94 0.00 0.00 0.00 0.00 0.00 27,246.94 Total Personnel Services 227,019.00 227,019.00 20,167.95 0.00 151,248.21 0.00 0.00 0.00 0.00 0.00 151,248.21 Materials & Supplies 6,750.00 6,750.00 199.62 0.00 241,175.94 0.00 0.00 0.00 0.00 0.00 241,175.94 Services & Charges 131,390.00 131,390.00 1,520.08 0.00 53,535.09 2,502.39 11,253.59 0.00 2,744.50 315.00 70,350.57 Debt Service 179,824.00 179,824.00 12,506.99 0.00 109,016.56 0.00 0.00 0.00 0.00 0.00 109,016.56 Misc. Expense 294,245.00 294,245.00 0.00 0.00 310,713.13 0.00 0.00 0.00 0.00 0.00 310,713.13 Transfers Out 118,246.32 118,246.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Capital Outlay 74,494.00 74,494.00 1,000.00 0.00 16,595.87 0.00 0.00 0.00 0.00 27,053.55 43,649.42 Total Expenditures 1,031,968.32 1,031,968.00 35,394.64 0.00 882,284.80 2,502.39 11,253.59 0.00 2,744.50 27,368.55 926,153.83 Change in Net Assets (558,006.32)(558,006.00)125,749.04 163.09 (92,397.44)14,621.10 259,131.37 26,947.26 53,800.08 200,752.98 463,018.44 Foundation Fayetteville Public Library Foundation Summarized Budget to Actual As of August 31, 2024 Created on 09/11/2024, 11:25 AM CDT Page 1 28 Preliminary: Subject to Audit 90--FDN Shively 91--FDN Operations 92--FDN Otwell 93--FDN NEH 94--FDN Walker/Tyson 95--FDN Anonymous 96--FDN Capital Campaign All Funds Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending Month Ending 08/31/2024 08/31/2024 08/31/2024 08/31/2024 08/31/2024 08/31/2024 08/31/2024 08/31/2024 Assets Cash & Investments 4,722 951,507 556,651 3,332,192 849,186 627,623 1,277,129 7,599,010 Receivables 1240 - Accounts Receivable 0 5 0 0 0 0 1 6 1243 - Grants Receivable 0 11,725 0 0 0 0 0 11,726 1245 - Pledge Receivable 0 5,660 0 0 0 0 1,194,309 1,199,968 1248 - Long Term Receivable 0 0 0 0 0 0 462,827 462,827 1250 - Allowance Present Value Discount 0 (75)0 0 0 0 (10,344) (10,419) 1255 - Allowance for Uncollectable 0 (164)0 0 0 0 (34,635) (34,799) 1265 - Sales Tax Rebate Receivable 0 0 0 0 0 0 4,544 4,544 1270 - Due From Other Funds 0 128,745 0 329 51,813 0 0 180,887 1276 - 91 Due From 10 0 37,908 0 0 0 0 0 37,908 1283 - 96 Due From 91 0 0 0 0 0 0 157,567 157,567 1284 - 91 Due From 96 0 31,057 0 0 0 0 0 31,057 1400 - Interfund (23,603)68,202 28,913 46,485 (138,270)1,952 16,322 0 Total Receivables (23,603)283,063 28,913 46,814 (86,457)1,952 1,790,591 2,041,272 Fixed Assets 0 15,331,644 0 0 0 0 0 15,331,644 Total Assets $ (18,881)$ 16,566,214 $ 585,564 $ 3,379,006 $ 762,729 $ 629,575 $ 3,067,720 $ 24,971,926 Liabilities and Fund Balances Liabilities 2001 - Accounts Payable 0 145,652 0 0 0 0 0 145,652 2005 - FDN Designated Pass Through to FPL 0 197,216 0 0 0 0 0 197,216 2006 - FDN CentreSuite 0 1,085 0 0 0 0 0 1,085 2020 - Accrued Accounts Payable 0 0 0 0 0 0 30,234 30,233 Salaries & Benefits Payable 0 8,667 0 0 0 0 0 8,668 Other Payables 2015 - Notes Payable 0 0 0 0 0 0 3,667,547 3,667,547 Due to Other Funds 6,321 511,972 18,305 58,088 28,445 64,162 38,954 726,247 Total Liabilities 6,321 864,592 18,305 58,088 28,445 64,162 3,736,735 4,776,648 Fund Balance (25,202)15,701,622 567,259 3,320,918 734,284 565,413 (669,015)20,195,278 Total Liabilities and Fund Balances $ (18,881)$ 16,566,214 $ 585,564 $ 3,379,006 $ 762,729 $ 629,575 $ 3,067,720 $ 24,971,926 Foundation Fayetteville Public Library Foundation Consolidated Funds: Balance Sheet As of August 31, 2024 Created on 09/11/2024, 11:24 AM CDT Page 1 29 30 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Independent Auditor’s Report and Financial Statements December 31, 2023 31 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Contents December 31, 2023 Contents Independent Auditor’s Report ....................................................................................................................... 1 Management’s Discussion and Analysis ..................................................................................................... 4 Financial Statements Governmental Funds Balance Sheet/Statement of Net Position ................................................................ 9 Statement of Governmental Funds Revenues, Expenditures and Changes in Fund Balances/Statement of Activities ............................................................................................................. 10 Notes to Financial Statements .................................................................................................................... 11 Required Supplementary Information Budgetary Comparison Schedule and Notes to Required Supplementary Information .............................. 23 Schedule of Expenditures of Federal Awards ............................................................................................. 25 Notes to the Schedule of Expenditures of Federal Awards ........................................................................ 26 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards – Independent Auditor’s Report ....................................................... 27 Report on Compliance for the Major Federal Program and Report on Internal Control over Compliance – Independent Auditor’s Report .......................................................................................... 29 Schedule of Findings and Questioned Costs .............................................................................................. 32 Summary Schedule of Prior Audit Findings ................................................................................................ 34 32 Board of Trustees Fayetteville Public Library 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Library’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Library’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 34 Board of Trustees Fayetteville Public Library 3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Library’s basic financial statements. The schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Report on Summarized Comparative Information We have previously audited the Library’s December 31, 2022 financial statements, and we expressed unmodified opinions on the respective financial statements of the governmental activities and each major fund in our report dated October 25, 2023. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2022, is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 2, 2024, on our consideration of the Library’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Library’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Library’s internal control over financial reporting and compliance. Rogers, Arkansas August 2, 2024 35 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Management’s Discussion and Analysis December 31, 2023 4 Introduction As management of the Fayetteville Public Library (Library), we offer readers of the Library’s financial statements this narrative overview and analysis of the Library’s financial activities for the year ended December 31, 2023. It should be read in conjunction with the accompanying basic financial statements of the Library. The basic financial statements of the Library include the Fayetteville Public Library Foundation (Foundation), which is a blended component unit of the Library. Financial Highlights Key financial highlights for 2023 are as follows:  The assets of the Library exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $53,588,441 (net position). Unrestricted net position of $18,381,691 of which $13,343,570 may be used to meet the Library’s ongoing obligations and $3,834,656 is available to meet the Foundation obligations.  Total net position increased by $1,943,525. The Library’s portion of net position increased by $2,201,794 or 7%. The Foundation’s net position decreased by $258,269 or 1%.  As of the close of the current year, the Library’s governmental funds reported ending fund balances of $7,617,825 attributable to the Library and $8,710,693 attributable to its Foundation, an increase of $1,376,170 or 22% for the Library and an increase of $1,314,347 or 18% for the Foundation in comparison with the prior year.  At the end of the current fiscal year, unassigned fund balance for the governmental funds was $7,490,743 or 61% of total governmental fund expenditures. The Library portion of this amount excluding its Foundation was $7,490,743 or 61% of Library governmental fund expenditures. Overview of Financial Statements This annual report consists of three parts: management’s discussion and analysis (this section), the basic financial statements and required supplementary information (Budgetary Comparison Schedule). The basic financial statements include information that presents two different views of the Library. The Library’s basic financial statements not only include the Library but also its blended component unit, Fayetteville Public Library Foundation (the “Foundation”). The Foundation, although a legal separate entity, is, in substance, part of the Library’s operations since its primary function is to raise funds for the benefit of the Library. The Board of Directors for the Foundation is appointed by the Board of Trustees for the Library. The effect of the transactions between the Library and Foundation is eliminated in the basic financial statements. Governmental funds are used to account for essentially the same functions reported as in the government-wide financial statements (statement of net position and statement of activities columns on pages 9 and 10, respectively). However, unlike the government-wide financial statements, government fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the Library’s near-term financing requirements. 36 Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited Independent Auditor’s Report Board of Trustees Fayetteville Public Library Fayetteville, Arkansas Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities and each major fund of the Fayetteville Public Library (Library), a component unit of the City of Fayetteville, Arkansas, as of and for the year ended December 31, 2023 and the related notes to the financial statements, which collectively comprise the Library’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Library, as of December 31, 2023 and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are required to be independent of the Library and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Library’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 33 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Management’s Discussion and Analysis December 31, 2023 5 Major funds of the Library are as follows: General Fund – This is the Library’s primary operating fund. It accounts for all financial resources of the general government. Fayetteville Public Library (FPL) Foundation Fund – This fund accounts for restricted and unrestricted contributions and other funds of the Library not included in the General Fund. The adjustment column of the financial statements represents adjustments necessary to convert the governmental fund financial statements to the government-wide financial statements under the full accrual method of accounting. The adjustments columns provide reconciliations to facilitate the comparison between the governmental fund and government-wide financial statements. The fourth column presents the Library’s government-wide financial statements which are designed to provide readers with a broad overview of the Library’s finances in a manner similar to a private-sector business. The statement of net position presents information on all of the Library’s assets, liabilities, and deferred inflows/outflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Library is improving or deteriorating. The statement of activities presents information showing how the Library’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Because the focus of the governmental fund is narrower than that of the government-wide financial statements, it is useful to compare the information presented for the governmental fund with similar information presented for the government-wide financial statements. By doing so, readers may better understand the long-term impact of the Library’s near-term financing decisions. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements. Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Library, assets exceeded liabilities and deferred inflows of resources by $53,588,441 at the close of the most recent fiscal year. A portion of the Library’s net position (34%) is unrestricted and may be used to meet the Library’s ongoing obligations to citizens and creditors. 37 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Management’s Discussion and Analysis December 31, 2023 6 Statements of Net Position 12/31/2023 12/31/2022 Current and Other Assets 27,387,253$ 25,624,848$ Capital Assets, net 33,126,148 33,979,955 Total Assets 60,513,401 59,604,803 Current and Other Liabilities 6,924,960 7,959,887 Total Liabilities 6,924,960 7,959,887 Net Investment in Capital Assets 27,596,672 26,952,523 Restricted 7,610,078 6,930,261 Unrestricted 18,381,691 17,762,132 Total Net Position 53,588,441$ 51,644,916$ An additional portion of the net position (51%) reflects its net investment in capital assets (e.g., land, buildings, library materials and furniture and equipment). The Library uses these capital assets to provide services to citizens; consequently these assets are not available for future spending. The remaining balance of net position (14%) represents resources that are subject to external restrictions on how they may be used. Combined unrestricted net position increased 3% and total net position increased 4% due to revenues exceeding expenses in 2023 by $1,943,525. Statements of Activities 12/31/2023 12/31/2022 Revenues Grants and contributions 5,375,493$ 4,561,997$ Property taxes 9,223,129 7,711,846 Fines and fees 102,915 63,690 Investment income (loss)796,829 (438,330) Loss on sale of capital assets - (23) Miscellaneous 747,165 836,753 Total revenues 16,245,531 12,735,933 Expenses 14,302,006 13,052,321 Changes in Net Position 1,943,525 (316,388) Net Position, Beginning of Year 51,644,916 51,961,304 Net Position, End of Year 53,588,441$ 51,644,916$ 38 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Management’s Discussion and Analysis December 31, 2023 7 In 2023, revenues increased by $3,509,598 or 28% and expenses increased by $1,249,685 or 10% primarily due to:  An increase in property tax revenue of $1,511,283.  An increase in investment income of $1,235,159 due to an overall increase in market performance in 2023 as compared to 2022.  An increase in grant revenue of $876,681 due to federal funding received in 2023.  An increase in personnel services of $317,601 due to the Library expansion.  An increase in materials and supplies of $304,420 due to the Library expansion.  An increase in other expenses of $392,957 due to federal grant expenditures in 2023. Financial Analysis of the Governmental Fund As noted earlier, the focus of the Library’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the Library’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a Library’s net resources available for discretionary use at the end of the fiscal year. As of the end of the current fiscal year, the general fund of the Library reported ending fund balances of $7,617,825. Approximately, 98% of the Library’s ending fund balance amount constitutes unassigned fund balance, which is available for spending at the Library’s discretion. The remainder of the fund balance has spending constraints placed on the purpose for which resources can be used. As of the end of the current fiscal year, the FPL Foundation fund reported ending fund balances of $8,710,693. 100% of the fund balance has spending constraints placed on the purpose for which resources can be used. The total fund balance of the general fund of the Library increased by $1,376,170 during the current fiscal year. A key factor in the change is an increase in the property tax revenue for the Library. The total fund balance of the FPL Foundation fund increased by $1,314,347 during the current fiscal year. A key factor in the change is an increase in investment income for the Foundation. Capital Assets At the end of 2023, the Library had $33,126,148 investment in capital assets, as detailed in Note 4 to the financial statements, a decrease of $853,807. The decrease is primarily due to capital assets additions in the amount of $1,269,223, net of depreciation expense of $2,123,030. Long-Term Debt At the end of 2023, the Foundation had total debt outstanding of $5,453,187. This is a decrease of $1,583,253 from 2022 mainly due to regularly schedule principal reduction on the outstanding debt due to amounts received on pledges. Budgetary Highlights Differences between the final budget and the actual results (budgetary basis) as reported on page 28 can be briefly summarized as follows:  Total revenues were over budget by 2.1%.  Total expenditures were under budget by 25.7%.  Overall change in fund balance was $1,376,170. 39 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Management’s Discussion and Analysis December 31, 2023 8 Economic Factors and Next Year’s Budget Economic conditions for the Library continued to show improvement compared to 2023. Assessed value for total property used for property tax revenue for the Library has shown stable growth throughout the years and continued to increase by 13.0% in 2023. The Library’s adopted operating budget for 2024 was decreased to $13.8 million which was a $2.8 million decrease from the 2023 budget. Revenues in the 2024 budget decrease appx 900 thousand from the 2023 budget. These decreases were primarily due to 2023 grant revenue and expenditures not expected to be repeated in 2024. The Library continues to face uncertain economic conditions in 2024. However, even though future economic conditions remain unclear at this time, the administration of the Library feels confident that the economic future of the Library remains very bright in the long run. Contacting the Library’s Financial Management This financial report is designed to provide a general overview of the Library’s finances for all those with an interest in them. Questions concerning any of the information provided in this report or requests for additional financial information should be mailed to the following address: Office of the Director of Financial Services Fayetteville Public Library 401 W. Mountain Fayetteville, AR 72701 40 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Governmental Funds Balance Sheet/Statement of Net Position (with summarized comparative financial information for the statement of net position for the year ended December 31, 2022) December 31, 2023 See Notes to Financial Statements General Fund FPL Foundation Fund Total Assets Cash and cash equivalents 3,797,890$ 1,457,578$ $ 5,255,468 Investments 3,282,889 188,337 3,471,226 Accounts receivable 84,858 2,373 87,231 Property taxes receivable, net 9,336,343 - 9,336,343 Pledges receivable, net - 1,636,216 1,636,216 Grants receivable 233,792 11,725 245,517 Other receivable 3,354 3,354 Accrued interest receivable 11,280 22,320 33,600 Due from other funds 385,331 - 385,331 Prepaid expense 127,082 - 127,082 Long term note receivable - 467,408 467,408 Restricted Cash and cash equivalents - 1,774,705 1,774,705 Investments - 4,938,981 4,938,981 Accrued interest receivable - 10,122 10,122 Capital assets, net - - - Total assets 17,262,819 10,509,765 27,772,584 Liabilities Accounts payable 228,174 262,638 490,812 Accrued expenses 163,914 23,927 187,841 Due to other funds - 385,331 385,331 Notes payable - - - Unearned revenue 412,840 - 412,840 Total liabilities 804,928 671,896 1,476,824 Deferred Inflows of Resources Unavailable revenue - property taxes 8,840,066 - 8,840,066 Unavailable revenue - contributions - 1,127,176 1,127,176 Total deferred inflows of resources 8,840,066 1,127,176 9,967,242 Fund Balances/Net Position Fund balances Nonspendable Prepaid expense 127,082 - 127,082 Permanent endowment - 1,250,000 1,250,000 Restricted - 3,626,037 3,626,037 Assigned - 3,834,656 3,834,656 Unassigned 7,490,743 - 7,490,743 Total fund balances 7,617,825 8,710,693 16,328,518 Total liabilities, deferred inflows, and fund balances $ 17,262,819 $ 10,509,765 $ 27,772,584 Net position Net investment in capital assets Restricted for capital assets Expendable Nonexpendable Restricted for debt service Expendable Restricted for children’s library Nonexpendable Restricted for the volunteer program Expendable Restricted for NEH Grant Expendable Restricted for capital campaign expansion Unrestricted Total net position 41 9 Adjustments Statement of Net Position 2022 Summarized Statement of Net Position $ - $ 5,255,468 $ 5,093,511 - 3,471,226 2,593,820 - 87,231 44,615 - 9,336,343 8,309,552 - 1,636,216 3,561,571 - 245,517 - - 3,354 - - 33,600 5,280 (385,331) - - - 127,082 97,266 - 467,408 - - 1,774,705 2,337,980 - 4,938,981 3,571,454 - 10,122 9,799 33,126,148 33,126,148 33,979,955 32,740,817 60,513,401 59,604,803 - 490,812 338,136 380,280 568,121 475,630 (385,331) - - 5,453,187 5,453,187 7,036,440 - 412,840 109,681 5,448,136 6,924,960 7,959,887 (8,840,066) - - (1,127,176) - - (9,967,242) - - (127,082) (1,250,000) (3,626,037) (3,834,656) (7,490,743) (16,328,518) 27,596,672 27,596,672 26,952,523 52,638 52,638 32,039 500,000 500,000 500,000 2,734,041 2,734,041 2,421,920 750,000 750,000 750,000 511,612 511,612 458,988 3,061,787 3,061,787 2,767,314 18,381,691 18,381,691 17,762,132 53,588,441$ 53,588,441$ 51,644,916$ 42 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Statement of Governmental Funds Revenues, Expenditures and Changes in Fund Balances/Statement of Activities (with summarized comparative financial information for the statement of activities for the year ended December 31, 2022) December 31, 2023 See Notes to Financial Statements General Fund FPL Foundation Fund Total Revenues Contributions From primary government 3,281,401$ -$ 3,281,401$ Capital Campaign - Expansion - 2,835,197 2,835,197 Other 58,325 61,793 120,118 Property taxes 8,301,804 - 8,301,804 Investment income (loss)207,728 589,101 796,829 Fines and fees 102,915 - 102,915 Grant revenue 887,026 471,352 1,358,378 State aid 164,462 - 164,462 Loss on sale of capital assets - - - Miscellaneous 484,968 242,004 726,972 Total revenues 13,488,629 4,199,447 17,688,076 Expenditures/Expenses Current Personnel services 5,416,970 187,583 5,604,553 Services and charges 1,815,506 - 1,815,506 Materials and supplies 756,192 - 756,192 Maintenance 365,419 - 365,419 Public relations - 15,018 15,018 Depreciation - - - Other 146,129 549,391 695,520 Transfers to primary government 2,658,269 - 2,658,269 Capital outlay 1,171,295 97,928 1,269,223 Debt Service Principal - 1,583,253 1,583,253 Interest - 254,799 254,799 Total expenditures/expenses 12,329,780 2,687,972 15,017,752 Excess (Deficiency) of Revenues Over Expenditures 1,158,849 1,511,475 2,670,324 Other Financing Sources (Uses) Transfers - internal activities 197,128 (197,128) - Insurance recoveries 20,193 - 20,193 Total other financing sources (uses)217,321 (197,128) 20,193 Net change in fund balances 1,376,170 1,314,347 2,690,517 Change in net position Fund Balances/Net Position Beginning of the year 6,241,655 7,396,346 13,638,001 End of year 7,617,825$ 8,710,693$ 16,328,518$ 43 10 Adjustments Statement of Activities 2022 Summarized Statement of Activities -$ 3,281,401$ 2,759,401$ (2,384,063) 451,134 1,074,636 - 120,118 84,909 921,325 9,223,129 7,711,846 - 796,829 (438,330) - 102,915 63,690 - 1,358,378 481,697 - 164,462 161,354 - - (23) 20,193 747,165 836,753 (1,442,545) 16,245,531 12,735,933 13,700 5,618,253 5,300,652 - 1,815,506 1,810,222 - 756,192 451,772 - 365,419 296,044 - 15,018 17,860 2,123,030 2,123,030 2,377,871 - 695,520 302,563 - 2,658,269 2,156,193 (1,269,223) - - (1,583,253) - - - 254,799 339,144 (715,746) 14,302,006 13,052,321 - - - - - - (20,193) - - (20,193) - - (2,690,517) - - 1,943,525 1,943,525 (316,388) 38,006,915 51,644,916 51,961,304 37,259,923$ 53,588,441$ 51,644,916$ 44 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Notes to Financial Statements December 31, 2023 11 Note 1. Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Reporting Entity Fayetteville Public Library (Library) is located in Fayetteville, Arkansas. The Library is a component unit of the City of Fayetteville, Arkansas (City). The Mayor of the City appoints all seven members of the Library’s Board of Trustees and the City provides the Library with financial assistance and a major portion of the Library’s budget. The accompanying financial statements present the Library and its component unit, an entity for which the Library is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the Library’s operations. Blended Component Unit. The Fayetteville Public Library Foundation (Foundation) provides fundraising for the Library and is governed by a board comprised of members appointed by the Board of Trustees of the Library. The Foundation is reported as the Library’s other major governmental fund. Complete financial statements of the Foundation may be obtained from the office of its Director of Development at 401 W. Mountain, Fayetteville, Arkansas. Measurement Focus, Basis of Accounting and Presentation Government-Wide Financial Statements The government-wide financial statements of the Library have been prepared on the accrual basis of accounting using the economic resources measurement focus. Revenues, expenses, gains, losses, assets and liabilities from exchange and exchange-like transactions are recognized when the exchange transaction takes place, while those from government-mandated nonexchange transactions (principally grants and property taxes) are recognized when all applicable eligibility requirements are met. Revenues and expenses include exchange transactions and program-specific, government-mandated nonexchange transactions. The Library first applies restricted net position when an expense or outlay is incurred for purposes for which both restricted and unrestricted net position are available. Fund Financial Statements Fund financial statements provide information about the Library’s funds. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they are both measurable and available. “Available” means collectible within the current period or soon enough thereafter to pay current liabilities. The Library considers revenues to be available if the revenues are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments and compensated absences, which are recognized as expenditures when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Major revenue sources susceptible to accrual include property taxes and grants. Fund Accounting The financial activities of the Library are recorded in individual funds. A fund is a separate accounting entity with a self-balancing set of accounts. The Library uses fund accounting to report on its financial position and results of operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. 45 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Notes to Financial Statements December 31, 2023 12 The Library reports the following major governmental funds: General Fund – This is the Library’s primary operating fund. It accounts for all financial resources of the general government. Fayetteville Public Library (FPL) Foundation Fund – This fund accounts for restricted and unrestricted contributions and other funds of the Library not included in the General Fund. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and deferred inflows/outflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses and other changes in net position during the reporting period. Actual results could differ from those estimates. Cash Equivalents The Library considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2023, cash equivalents consisted of money market funds with brokers. Restricted cash equivalents consist of those short-term liquid investments held for use by the Library that have been limited by donors to a specific time period or purpose. Property Taxes Property taxes are levied each November 1 on the assessed value listed as of January 1 for all real and personal property. The property tax is considered due on the first Monday in February (the lien date) after the levy; however, the tax is not considered delinquent until October 16 of that year. As a result, the majority of the tax is not collected within the time frame necessary to finance the liabilities of the current period. Property taxes, which remain delinquent for a period of three years, are certified to the land commissioner where a lien is recorded and held on file. If property taxes remain delinquent for a period of seven years, the property will be subsequently sold by the land commissioner. In the governmental funds, property taxes are measurable when levied even though not available. As a result, at December 31, 2023, property taxes receivable of $9,336,343 and related deferred inflows of resources of $8,840,066 have been recorded in the governmental funds. In the government-wide statement of net position, property taxes are considered earned at the time levied. In addition to property taxes levied, any delinquent taxes are recorded net of amounts considered uncollectible. The appraised value of taxable property upon which the property tax is levied is determined by the county assessor. The assessor estimates full market value of the property and applies the statutory rate of 20% to arrive at assessed value. During August 2016, the City of Fayetteville, Arkansas held a special election related to an increase in property taxes for the benefit of the Library. An increase of one and one-half (1.5) mills was passed as it relates to the maintenance and operation of the Fayetteville Public Library. In addition, a separate tax of one and two-tenths (1.2) mills was passed to be pledged to the issuance of bonds not to exceed $26,500,000 to finance capital improvements to the Fayetteville Public Library. These bonds were issued in June 2017. Property taxes of $2,734,041 for the 1.2 mills are included in the property tax receivable of $9,336,343 and are shown as restricted for debt service on the Statement of Net Position. 46 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Notes to Financial Statements December 31, 2023 13 Pledges Receivable Pledges receivable consist of promises to give made by donors. Pledges receivable are recorded net of estimated uncollectible amounts and discounted to present value for pledges due in more than one year. The Foundation provides an allowance for doubtful accounts, which is based upon a review of outstanding receivables, historical collection information and existing economic conditions. Notes Receivable Notes receivable consist of amounts due from sale of property. Notes receivable is recorded net of estimated uncollectible amounts. The Foundation provides an allowance for doubtful accounts, which is based upon a review of outstanding receivables, historical collection information and existing economic conditions. Investments and Investment Income Investments in U.S. Treasury, agency and instrumentality obligations with a remaining maturity of one year or less at time of acquisition and in nonnegotiable certificates of deposit are carried at amortized cost. All other investments are carried at fair value. Fair value is determined using quoted market prices. Restricted investments consist of those investments held for use by the Library that have been limited by donors to a specific time period or purpose Investment earnings include dividend and interest income, realized gains and losses on investments carried at other than fair value and the net change for the year in the fair value of investments carried at fair value. Capital Assets Capital assets are recorded at cost at the date of acquisition, or acquisition value at the date of donation if acquired by gift. Depreciation is computed using the straight-line method over the estimated useful life of each asset. The following estimated useful lives are being used by the Library: Film 5 years Books & Publications 3-10 years Software 5-10 years Equipment 5-15 years Furniture & Fixtures 5-20 years Buildings 30-50 years Collections All collections of works of art, historical treasures, and similar assets are capitalized. Items added to the collections are capitalized at cost if purchased or at estimated acquisition value on the acquisition date if donated. Collection items sold or removed are reported as unrestricted or temporarily restricted gains or losses depending on donor stipulations, if any, placed on the items at the time of acquisition. These collections are considered inexhaustible and have extraordinarily long useful lives, and as such, these items are not depreciated. 47 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Notes to Financial Statements December 31, 2023 14 Compensated Absences Library policies permit most employees to accumulate leave with pay benefits that may be realized as paid time off or, in limited circumstances, as a cash payment. Expense and the related liability are recognized as accrued leave benefits are earned whether the employee is expected to realize the benefit as time off or in cash. Compensated absence liabilities are computed using the regular pay rates in effect at the balance sheet date plus an additional amount for compensation-related payments such as social security and Medicare taxes computed using rates in effect at that date. The estimated compensated absences liability is included in accrued expenses on the statement of net position. Deferred Outflows of Resources and Deferred Inflows of Resources A deferred inflow of resources is an acquisition of net position by the Library that is applicable to a future reporting period and a deferred outflow of resources is a consumption of net position by the Library that is applicable to a future period. Both deferred inflows and outflows are reported in the statement of net position but are not recognized in the financial statements as revenues and expenditures until the period(s) to which they relate. The governmental funds report unavailable revenues from two sources: property taxes and contributions. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The statement of net position reports unavailable revenue from contributions only due to time restrictions. Net Position Net position of the Library is classified in four components. Net investment in capital assets consist of capital assets net of accumulated depreciation and reduced by the outstanding balances of borrowings used to finance the purchase or construction of those assets. Restricted expendable net position is noncapital assets that must be used for a particular purpose as specified by creditors, grantors, or donors external to the Library. Restricted nonexpendable net position is noncapital assets whose restrictions are permanent in nature as specified by donors external to the Library. Unrestricted net position is remaining assets and deferred outflows less remaining liabilities and deferred inflows that do not meet the definition of net investment in capital assets, restricted expendable or restricted nonexpendable. When both restricted and unrestricted resources are available for use, it is the Library’s policy to use restricted resources first, then unrestricted resources as they are needed. Fund Balance – Governmental Funds The fund balances for the Library’s governmental funds are displayed in four components: Nonspendable – Nonspendable fund balances are not in a spendable form or are required to be maintained intact. Restricted – Restricted fund balances may be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may be changed or lifted only with the consent of resource providers. Assigned – Assigned fund balances include amounts intended to be used for specific purposes as specified by the Foundation’s management or governing board. Unassigned – Unassigned fund balance is the residual classification for the general fund and includes all amounts not contained in the other classifications. 48 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Notes to Financial Statements December 31, 2023 15 The Library considers restricted amounts to have been spent when an expenditure is incurred for purposes for which both restricted and unassigned fund balance is available. The Library applies restricted amounts first, and then unassigned amounts when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. Income Taxes The Foundation is exempt from income taxes under section 501 of the Internal Revenue Code and similar provision of state law. However, the Foundation is subject to federal income tax on any unrelated business taxable income. The Foundation files tax returns in the U.S. Federal Jurisdiction. Note 2. Reconciliation of Fund Financial Statements to Government-Wide Financial Statements Total fund balances and the net change in fund balances of the Library’s General Fund and the FPL Foundation Fund differs from net position and change in net position of the governmental activities reported in the statement of net position and statement of activities. These differences primarily result from the long-term economic focus of the statement of net position and statement of activities versus the current financial resources focus of the governmental fund balance sheet and the statement of revenues, expenditures, and changes in fund balances. The following are reconciliations of fund balances to net position and the net change in fund balances to the net change in net position: Total fund balances 16,328,518$ Amounts reported in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.33,126,148 Amounts reported as deferred inflows of resources are not recognized at the fund level on the modified accrual basis are reported as revenues on the full accrual basis in the government-wide financial statements.9,967,242 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Accrued compensated absences (380,280) Notes payable (5,453,187) Total net position 53,588,441$ 49 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Notes to Financial Statements December 31, 2023 16 Change in fund balances 2,690,517$ Amounts reported in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, for government-wide statements, the costs of those assets are allocated over estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.(853,807) Contribution revenues that do not provide current financial resources are not reported as revenues for the funds but are reported as revenues in the statement of activities.(2,384,063) Property tax revenues that do not provide current financial resources are not reported as revenues for the funds but are reported as revenues in the statement of activities.921,325 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment consumes current financial resources. Neither transaction has any effect on net position. This amount is the net effect of these differences in the treatment of long-term debt.1,583,253 Accrued expenses, such as compensated absences reported in the statement of activities do not require the use of current financial resources, and, therefore, are not expenditures in the funds.(13,700) Change in net position 1,943,525$ Note 3. Deposits, Investments and Investment Income Deposits Custodial credit risk is the risk that in the event of a bank failure, a government’s deposits may not be returned to it. State law requires collateralization of all deposits of public funds with federal depository insurance, bonds and other obligations of the U.S. Treasury, U.S. agencies or instrumentalities of the state of Arkansas. No legal opinion has been obtained regarding the enforceability of any of the collateral arrangements. Library The Library’s deposit policy for custodial credit risk requires compliance with the provisions of state law. At December 31, 2023, the Library had bank balances of $1,159,788 that were all insured (FDIC) or collateralized with securities held by the Library or the Library’s agents in the Library’s name. The carrying value of these deposits as of December 31, 2023, was $1,191,413. 50 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Notes to Financial Statements December 31, 2023 17 Foundation The Foundation’s deposit policy for custodial credit risk requires compliance with the provisions of state law. At December 31, 2023, $2,068,167 that were all insured (FDIC) or collateralized with securities held by the Foundation or the Foundation’s agent in the Foundation’s name. The carrying value of these deposits as of December 31, 2023 was $2,108,663. Investments Library The Library may legally invest in direct obligations of the U.S. Government and agencies, collateralized certificates of deposit, prerefunded municipal bonds, corporate bonds, collateralized repurchase agreements, treasury money markets, local government trusts and savings accounts. At December 31, 2023, the Library had the following investments and maturities: Less than 1 U.S. treasury obligations 2,823,638$ 2,124,836$ 698,801$ -$ Money market mutual funds 2,601,528 2,601,528 - - Corporate bonds 459,251 - 433,120 26,131 5,884,417$ 4,726,364$ 1,131,921$ 26,131$ Maturities in Years Type Fair Value 1-5 6-10 In compliance with GASB Statement No. 72, Fair Value Measurement and Application, the Library categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Library had the following recurring fair value measurements as of December 31, 2023:  U.S. treasury obligations of $2,823,638 are valued using quoted market prices (Level 1 inputs).  Money market mutual funds of $2,601,528 are valued using quoted market prices (Level 1 inputs).  Corporate bonds of $459,251 are valued using quoted market prices (Level 1 inputs). Interest Rate Risk – As a means of limiting its exposure to fair value losses arising from rising interest rates, the Library’s investment policy attempts to match investment maturities with cash flow requirements. Money market mutual funds are used to meet the short term cash flow needs of the Library. Other investments are allowed within a range of maturities of 90 days to 10 years and over. Some of the Library’s investments have maturities over five years to maximize interest earnings. Custodial Credit Risk – For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Library will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. The Library’s investment policy does not address custodial credit risk. 51 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Notes to Financial Statements December 31, 2023 18 Credit Risk – Credit risk is the risk that the issuer or other counterparty to an investment will not fulfill its obligations. It is the Library’s policy to invest no more than 20% in corporate debt or in securities of a management type investment company or investment trust. It is the Library’s policy to limit its investments in corporate bonds to issues that are rated investment grade by Standard & Poor’s and Moody’s Investors Service and shall maintain an A- average rating or better for Standard & Poor’s and an A3 average rating or better for Moody’s Investors Service. Investment in commercial paper will be rated A-1/P-1. At December 31, 2023, the Library’s investments in U.S. agencies obligations and corporate bonds were rated an average rate of AA by Standard & Poor rating and an average rate of Aa1 by Moody’s Investors Service. Concentration of Credit Risk – The Library’s policy states that investments shall be diversified by limiting investments to avoid concentration in securities from a specific issuer less than or equal to 5% of the cost basis of the Library’s portfolio at the time of purchase. Foundation At December 31, 2023, the Foundation had the following investments and maturities: Less than 1 Corporate bonds $ 900,365 $ 130,359 $ 639,752 $ 130,254 Money market mutual funds 1,123,630 1,123,630 - - U.S. treasury obligations 970,938 574,200 396,738 - 2,994,933 1,828,189 $ 1,036,490 $ 130,254 Corporate stocks 2,260,986 Exchange-traded funds 185,446 Certificates of deposit 681,877 Mutual funds 127,696 $ 9,245,871 6-10 Type Fair Value 1-5 Maturities in Years In compliance with GASB 72, the Foundation categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Foundation had the following recurring fair value measurements as of December 31, 2023:  Corporate bonds and stocks of $900,365 and $2,260,986, respectively, are valued using quoted market prices (Level 1 inputs).  Money market mutual funds and mutual funds of $1,123,630 and $127,696, respectively, are valued using quoted market prices (Level 1 inputs).  Exchange-trade funds of $185,446 are valued using quoted market prices (Level 1 inputs). 52 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Notes to Financial Statements December 31, 2023 19  Certificates of deposits of $681,877 are valued using observable inputs for similar securities (Level 2 inputs).  U.S. agency obligations of $970,938 are valued using quoted market prices (Level 1 inputs). Interest Rate Risk – As a means of limiting its exposure to fair value losses arising from rising interest rates, the Foundation’s investment policy limits its investment fixed income portfolio to maturities of no more than 10 years or non-public in nature. Credit Risk - Credit risk is the risk that the issuer or other counterparty to an investment will not fulfill its obligations. It is the Foundation’s policy to limit its investments in corporate bonds to issues that are rated investment grade by Standard & Poor’s and Moody’s Investors Service and shall maintain an A+ average rating or better for Standard & Poor’s and an A1 average rating or better for Moody’s Investors Service. At December 31, 2023, the Foundation’s investments in U.S. agencies obligations and corporate bonds were rated an average rate of A by Standard & Poor rating and an average rate of A1 by Moody’s Investors Service. Custodial Credit Risk - For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Foundation will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. The Foundation’s investment policy does not address custodial credit risk. Concentration of Credit Risk - The Foundation’s investment policy dictates that except for U.S. Treasury or agency obligations, the Foundation’s investment portfolio shall contain no more than 5% exposure to any issuer. Summary of Carrying Values The carrying values of deposits and investments shown above are included in the statement of net position as follows: Carrying value Library Deposits 1,191,413$ Cash on hand 4,949 Investments 5,884,417 Foundation Deposits 2,108,663 Investments 6,250,938 $ 15,440,380 Included in the following statement of net position captions Cash and cash equivalents $ 5,255,468 Restricted cash and cash equivalents 1,774,705 Investments 3,471,226 Restricted investments 4,938,981 $ 15,440,380 53 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Notes to Financial Statements December 31, 2023 20 Investment Income Investment income for the year ended December 31, 2023 consisted of: Interest and dividend income 314,503$ Net increase in fair value of investments 482,326 $ 796,829 Note 4. Capital Assets Capital assets activity for the year ended December 31, 2023 was: Ending Transfers Balance Land $ 2,029,755 $ - $ - $ - $ 2,029,755 Buildings 33,011,052 28,047 - - 33,039,099 Software 359,669 - - - 359,669 Books & Publications 6,326,872 674,566 - - 7,001,438 Furniture, fixtures and equipment 9,733,391 467,403 - 89,585 10,290,379 Library owned art 1,002,200 6,091 - - 1,008,291 Film 180,000 - - - 180,000 Construction in progress 89,585 93,116 - (89,585) 93,116 52,732,524 1,269,223 - - 54,001,747 Less accumulated depreciation Buildings 8,237,261 659,255 - - 8,896,516 Software 151,837 27,331 - - 179,168 Books & Publications 5,647,820 496,624 - - 6,144,444 Furniture, fixtures and equipment 4,535,651 939,820 - - 5,475,471 Film 180,000 - - - 180,000 18,752,569 2,123,030 - 20,875,599 Capital assets, net $ 33,979,955 $ (853,807) $ - $ - $ 33,126,148 Beginning Balance Additions Reductions 54 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Notes to Financial Statements December 31, 2023 21 Note 5. Long-Term Loan Foundation The Foundation had a $7,486,532 Promissory Note maturing on June 1, 2027, with annual principal payments of $500,000. At December 31, 2023, there was $5,453,187 outstanding on this loan. See rollforward below. The loan is collateralized by all pledges of the Foundation. Interest was 3.95% at December 31, 2023 and is payable monthly. Debt Outstanding Balance at December 31, 2022 Payments Balance at December 31, 2023 Generations Bank Loan 7,036,440$ 1,583,253$ 5,453,187$ The following is a schedule of remaining debt service payments to maturity on an annual basis: Year ending Principal Interest Total 2024 500,000$ 221,802$ 721,802$ 2025 500,000 202,051 702,051 2026 500,000 182,301 682,301 2027 3,953,187 149,191 4,102,378 5,453,187$ 755,345$ 6,208,532$ Note 6. Interfund Transfers During the year ended December 31, 2023, the following transfers were made between the Library and the Foundation:  $69,376 transfer of funds from the Foundation to the Library for payments relating to Investments.  $75,000 transfer of funds from the Library to the Foundation for payments relating to Investments.  $202,752 transfer of funds from the Foundation to the Library related to federal grant funds. 55 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Notes to Financial Statements December 31, 2023 22 Note 7. Pension Plan The Library contributes to a defined contribution pension plan covering substantially all employees. Pension expense is recorded for the amount of the Library’s required contributions, determined in accordance with the terms of the plan. The plan is administered by Bank of Arkansas Wealth Management. The plan provides retirement benefits to plan members and their beneficiaries. Benefit provisions are contained in the plan document and were established and can be amended by action of the Library’s governing body. Plan members were required to contribute, at a minimum, 3% of covered payroll up to a maximum of $19,500 for 2023. The Library’s contribution is a discretionary 6% to 12% of each participant’s annual compensation and both the employer and employee contributions are immediately fully vested. Contributions actually made during 2023 by plan members and the Library aggregated $298,026 and $331,205, respectively. Note 8. Risk Management The Library is exposed to various risks of loss from torts; theft of, damage to, and destruction of assets; business interruption; errors and omissions; employee injuries and illnesses; natural disasters; and employee health, dental and accident benefits. Commercial insurance coverage is purchased for claims arising from such matters. Settled claims have not exceeded this commercial coverage in any of the three preceding years. Note 9. Foundation Endowments and Similar Funds The Foundation’s Board of Directors has established an investment policy with the objective of protecting the principal of these investments and maximizing total investment return without assuming extraordinary risks. It is the goal of the Foundation to provide spendable income levels that are reasonably stable and sufficient to ensure a proper balance between the preservation of corpus and enhancement of the purchasing power of investment earnings. As of December 31, 2023, the Foundation had a total of $52,638, of net appreciation from investment of donor-restricted endowments available for expenditure. This amount is reported in restricted fund balance in the governmental fund balance sheet and in various categories of expendable restricted net position on the statement of net position. The laws of the state of Arkansas do not currently restrict the Foundation’s ability to spend net appreciation on donor-restricted endowment funds. 56 Required Supplementary Information 57 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Budgetary Comparison Schedule and Notes to Required Supplementary Information Budgetary Basis Year Ended December 31, 2023 23 Actual Budgetary Final Budget- Budgetary Basis Basis Variance Revenues Contributions From primary government $ 3,281,401 $ 3,281,401 $ 3,281,401 $ - From Foundation - - 197,128 197,128 Other - - 58,325 58,325 Property taxes 7,681,237 7,681,237 8,301,804 620,567 Investment income 1,000 1,000 207,728 206,728 Fines and fees 62,700 62,700 102,915 40,215 Grant revenue 15,000 1,724,045 887,026 (837,019) State aid 141,150 141,150 164,462 23,312 Miscellaneous 535,400 535,400 505,161 (30,239) Total revenues 11,717,888 13,426,933 13,705,950 279,017 Expenditures Current Personnel services 5,251,492 5,603,203 5,416,970 (186,233) Materials and supplies 2,008,503 3,702,195 756,192 (2,946,003) Services and charges 1,777,058 2,255,158 1,815,506 (439,652) Maintenance 350,495 455,457 365,419 (90,038) Other - - 146,129 146,129 Transfers to primary government 2,424,000 2,424,000 2,658,269 234,269 Other 105,800 188,941 - (188,941) Capital outlay 912,196 1,967,771 1,171,295 (796,476) Total expenditures 12,829,544 16,596,725 12,329,780 (4,266,945) Excess of Revenues Over (Under) Expenditures (1,111,656) (3,169,792) 1,376,170 4,545,962 Change in Fund Balances (1,111,656) (3,169,792) 1,376,170 4,545,962 Fund Balances, Beginning of Year 6,241,655 6,241,655 6,241,655 - Fund Balances, End of Year 5,129,999 3,071,863 $ 7,617,825 $ 4,545,962 Budget Original Final 58 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Budgetary Comparison Schedule and Notes to Required Supplementary Information Budgetary Basis Year Ended December 31, 2023 24 Budgets and Budgetary Accounting The annual budget is prepared on the modified accrual basis for revenues and expenditures and adopted by the Library Board of Trustees. Subsequent amendments are approved by the Board. Budgetary control is maintained at the Library program level. The budgetary basis used for budget purposes excludes the revenues and expenditures of the Foundation since it is a blended component unit of the Library and does not adopt an annual budget. 59 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Schedule of Expenditures of Federal Awards Year Ended December 31, 2023 25 Federal Pass-Through Federal Grantor/Pass- Assistance Entity Passed Total Through Grantor/ Listing Identifying Through to Federal Program or Cluster Title Number Number Subrecipients Expenditures Department of Treasury City of Fayetteville, Arkansas/COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 $ - $ 649,992 Department of Agriculture Fayetteville Public Library Foundation/Urban Agriculture and Innovative Production 10.935 - 202,752 $ - $ 852,744 60 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Notes to Schedule of Expenditures of Federal Awards Year Ended December 31, 2023 26 Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Fayetteville Public Library under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Fayetteville Public Library, it is not intended to and does not present the financial position, changes in net position or cash flows of the Library. Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 3. Indirect Cost Rate The Fayetteville Public Library has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Note 4. Federal Loan Programs The Fayetteville Public Library did not receive or participate in any federal loan programs during the year ended December 31, 2023. 61 Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor’s Report Board of Trustees Fayetteville Public Library Fayetteville, Arkansas We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities and each major fund of the Fayetteville Public Library, as of and for the year ended December 31, 2023 and the related notes to the financial statements, which collectively comprise the Library’s basis financial statements and have issued our report thereon dated August 2, 2024. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the entity’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of the entity’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 62 Board of Trustees Fayetteville Public Library 28 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the entity’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Rogers, Arkansas August 2, 2024 63 Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited Report on Compliance for the Major Federal Program and Report on Internal Control over Compliance Independent Auditor's Report Board of Trustees Fayetteville Public Library Fayetteville, Arkansas Report on Compliance for the Major Federal Program Opinion on the Major Federal Program We have audited Fayetteville Public Library’s (the Library) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the entity’s major federal program for the year ended December 31, 2023. The entity’s major federal program is identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the Library complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended December 31, 2023. Basis for Opinion on the Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the “Auditor’s Responsibilities for the Audit of Compliance” section of our report. We are required to be independent of the Library and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program. Our audit does not provide a legal determination of the Fayetteville Public Library’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Library’s federal programs. 64 Board of Trustees Fayetteville Public Library 30 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Library’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Library’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Library’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the Library’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Library’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the “Auditor’s Responsibilities for the Audit of Compliance” section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. 65 Board of Trustees Fayetteville Public Library 31 Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Rogers, Arkansas August 2, 2024 66 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Schedule of Findings and Questioned Costs Year Ended December 31, 2023 32 Section I – Summary of Auditor’s Results Financial Statements 1. The type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP was: Unmodified Qualified Adverse Disclaimer 2. Internal control over financial reporting: Significant deficiency(ies) identified? Yes None reported Material weakness(es) identified? Yes No 3. Noncompliance material to the financial statements noted? Yes No Federal Awards 4. Internal control over major federal awards programs: Significant deficiency(ies) identified? Yes None reported Material weakness(es) identified? Yes No 5. Type of auditor’s report issued on compliance for major federal award programs: Unmodified Qualified Adverse Disclaimer 6. Any audit findings disclosed that are required to be reported by 2 CFR 200.516(a)? Yes No 67 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Schedule of Findings and Questioned Costs (Continued) Year Ended December 31, 2023 33 7. Identification of major federal programs: Assistance Listing Numbers Name of Federal Program or Cluster 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds 8. Dollar threshold used to distinguish between Type A and Type B programs: $750,000. 9. Auditee qualified as a low-risk auditee? Yes No Section II – Financial Statement Findings Reference Number Finding No matters are reportable. Section III – Federal Award Findings and Questioned Costs Reference Number Finding No matters are reportable. 68 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Schedule of Prior Audit Findings Year Ended December 31, 2023 34 Reference Number Summary of Finding Status No matters are reportable. 69 Report to the Board of Trustees Fayetteville Public Library – A component unit of the City of Fayetteville Results of the 2023 Financial Statement Audit, Including Required Communications December 31, 2023 70 Fayetteville Public Library August 2, 2024 Contents Required Communications Regarding Our Audit Strategy & Approach (AU-C 260) ....................................................................... 1 Overview & Responsibilities ................................................................................................................................................................ 1 Qualitative Aspects of Significant Accounting Policies & Practices ................................................................................................ 4 Adjustments Identified by Audit .......................................................................................................................................................... 6 Other Required Communications ....................................................................................................................................................... 6 Other Matters ........................................................................................................................................................................................ 7 Attachments .......................................................................................................................................................................................... 8 71 Fayetteville Public Library 1 August 2, 2024 Required Communications Regarding Our Audit Strategy & Approach (AU-C 260) The following matters are required communications we must make to you, including these responsibilities: Overview & Responsibilities Matter Discussion Scope of Our Audit This report covers audit results related to your financial statements and supplementary information:  As of and for the year ended December 31, 2023  Conducted in accordance with our contract dated January 25, 2024 Our Responsibilities Forvis Mazars is responsible for forming and expressing opinions about whether the financial statements that have been prepared by management, with the oversight of those charged with governance, are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Audit Scope & Inherent Limitations to Reasonable Assurance An audit performed in accordance with auditing standards generally accepted in the United States of America (GAAS) and Government Auditing Standards issued by the Comptroller General of the United States (GAGAS) is designed to obtain reasonable, rather than absolute, assurance about the financial statements. The scope of our audit tests was established in relation to the opinion unit being audited and did not include a detailed audit of all transactions. 72 Fayetteville Public Library 2 August 2, 2024 Matter Discussion Extent of Our Communication In addition to areas of interest and noting prior communications made during other phases of the engagement, this report includes communications required in accordance with GAAS that are relevant to the responsibilities of those charged with governance in overseeing the financial reporting process, including audit approach, results, and internal control. The standards do not require the auditor to design procedures for the purpose of identifying other matters to be communicated with those charged with governance. Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence. Your Responsibilities Our audit does not relieve management or those charged with governance of your responsibilities. Your responsibilities and ours are further referenced in our contract. Distribution Restriction This communication is intended solely for the information and use of the following and is not intended to be, and should not be, used by anyone other than these specified parties:  The Board of Trustees  Management  The City of Fayetteville 73 Fayetteville Public Library 3 August 2, 2024 Government Auditing Standards Matter Discussion Additional GAGAS Reporting We also provided reports as of December 31, 2023 on the following as required by GAGAS:  Internal control over financial reporting and on compliance and other matters based on an audit of the financial statements performed in accordance with GAGAS Reporting Limitations Our consideration of internal control over financial reporting and our tests of compliance were not designed with an objective of forming an opinion on the effectiveness of internal control or on compliance, and accordingly, we do not express such an opinion. Uniform Guidance Overview & Responsibilities Matter Discussion Scope of Our Audit We also provided reports as of December 31, 2023 on the following as required by U.S. Office of Management and Budget (OMB) Uniform Guidance:  Opinion on compliance for each major federal award program  Report on internal control over compliance  Schedule of Federal Awards Audit Scope & Inherent Limitations to Reasonable Assurance A compliance audit performed in accordance with OMB Uniform Guidance is designed to obtain reasonable, rather than absolute, assurance about whether noncompliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on a major federal award program occurred. 74 Fayetteville Public Library 4 August 2, 2024 Qualitative Aspects of Significant Accounting Policies & Practices The following matters are detailed in the following pages and included in our assessment: Significant Accounting Policies Significant accounting policies are described in Note 1 of the audited financial statements.  No matters are reportable Unusual Policies or Methods With respect to significant unusual accounting policies or accounting methods used for significant unusual transactions (significant transactions outside the normal course of business or that otherwise appear to be unusual due to their timing, size, or nature), we noted the following:  No matters are reportable Alternative Accounting Treatments We had discussions with management regarding alternative accounting treatments within GAAP for policies and practices for material items, including recognition, measurement, and disclosure considerations related to the accounting for specific transactions as well as general accounting policies, as follows:  No matters are reportable 75 Fayetteville Public Library 5 August 2, 2024 Management Judgments & Accounting Estimates Accounting estimates are an integral part of financial statement preparation by management, based on its judgments. Significant areas of such estimates for which we are prepared to discuss management’s estimation process and our procedures for testing the reasonableness of those estimates include:  Fair value investments  Property tax receivable, net  Estimated remaining lives of capital assets Financial Statement Disclosures The following area involves particularly sensitive financial statement disclosures for which we are prepared to discuss the issues involved and related judgments made in formulating this disclosure:  Property taxes receivable, net Our Judgment About the Quality of the Entity’s Accounting Principles During the course of the audit, we made the following observations regarding the Entity’s application of accounting principles:  No matters are reportable 76 Fayetteville Public Library 6 August 2, 2024 Adjustments Identified by Audit During the course of any audit, an auditor may propose adjustments to financial statement amounts. Management evaluates our proposals and records those adjustments that, in its judgment, are required to prevent the financial statements from being materially misstated. A misstatement is a difference between the amount, classification, presentation, or disclosure of a reported financial statement item and that which is required for the item to be presented fairly in accordance with the applicable financial reporting framework. Proposed & Recorded Adjustments Auditor-proposed and management-recorded entries include the following:  No matters are reportable Uncorrected Misstatements  Subscription-Based Information Technology Arrangements right-to-use asset and corresponding liability Other Required Communications Other Material Communications Listed below are other material communications between management and us related to the audit:  Management representation letter (see Attachments)  We orally communicated to management other deficiencies in internal control identified during our audit that are not considered material weaknesses or significant deficiencies. 77 Fayetteville Public Library 7 August 2, 2024 Other Matters Upcoming GASB Pronouncements  GASB Statement No. 101, Compensated Absences – The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The standard amends the existing requirements to disclose the gross increases and decreases in a liability for compensated absences to allow entities to disclose only the net change in the liability. The requirements of this statement are effective for the entity’s fiscal year 2024, and all reporting periods thereafter.  GASB Statement No. 102, Certain Risk Disclosures – The objective of this statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The requirements of this statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. Earlier application is encouraged.  GASB Statement No. 103, Financial Reporting Model Improvements – The objective of this statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This statement also addresses certain application issues. The requirements of this statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application is encouraged. 78 Fayetteville Public Library 8 August 2, 2024 Attachments Management Representation Letter As a material communication with management, included herein is a copy of the representation letter provided by management at the conclusion of our engagement. 79 Attachment A Management Representation Letter 80 Representation of: Fayetteville Public Library Attn: Board of Trustees 401 W Mountain Street Fayetteville,Arkansas 72701 Provided to: Forvis Mazars, LLP Certified Public Accountants 5115 W. J.B. Hunt Drive, Suite 100 Rogers, Arkansas 72758 The undersigned (We) are providing this letter in connection with Forvis Mazars’ audit of our financial statements as of and for the year ended December 31, 2023. We are also providing this letter in connection with: Our representations are current and effective as of the date of Forvis Mazars’ report: August 2, 2024. Our engagement with Forvis Mazars is based on our contract for services dated: January 25, 2024. Our Responsibility & Consideration of Material Matters We confirm that we are responsible for the fair presentation of the financial statements subject to FORVIS’ report in conformity with accounting principles generally accepted in the United States of America. We are also responsible for adopting sound accounting policies; establishing and maintaining effective internal control over financial reporting, operations, and compliance; and preventing and detecting fraud. Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. An omission or misstatement that is monetarily small in amount could be considered material as a result of qualitative factors. Confirmation of Matters Specific to the Subject Matter of Forvis Mazars’ Report We confirm, to the best of our knowledge and belief, the following: Broad Matters 1. We have fulfilled our responsibilities, as set out in the terms of our contract, for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America. 2. We acknowledge our responsibility for the design, implementation, and maintenance of: a. Internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. b. Internal control to prevent and detect fraud. 81 Fayetteville Public Library Page 2 3. We have provided you with: a. Access to all information of which we are aware that is relevant to the preparation and fair presentation of the financial statements, such as financial records and related data, documentation, and other matters. b. Additional information that you have requested from us for the purpose of the audit. c. Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. d. All minutes of governing body meetings held through the date of this letter or summaries of actions of recent meetings for which minutes have not yet been prepared. All unsigned copies of minutes provided to you are copies of our original minutes approved by the governing body, if applicable, and maintained as part of our records. e. All significant contracts and grants. 4. We have responded fully and truthfully to all your inquiries. Government Auditing Standards 5. We acknowledge that we are responsible for compliance with applicable laws, regulations and provisions of contracts, and grant agreements. 6. We have identified and disclosed to you all laws, regulations, and provisions of contracts and grant agreements that have a direct and material effect on the determination of amounts in our financial statements or other financial data significant to the audit objectives. 7. We have identified and disclosed to you any violations or possible violations of laws, regulations, including those pertaining to adopting, approving, and amending budgets, and provisions of contracts and grant agreements, tax or debt limits, and any related debt covenants whose effects should be considered for recognition and/or disclosure in the financial statements or for your reporting on noncompliance. 8. We have taken or will take timely and appropriate steps to remedy any fraud, abuse, illegal acts, or violations of provisions of contracts or grant agreements that you or other auditors report. 9. We have a process to track the status of audit findings and recommendations. 10. We have identified to you any previous financial audits, attestation engagements, performance audits, or other studies related to the objectives of your audit and the corrective actions taken to address any significant findings and recommendations made in such audits, attestation engagements, or other studies. 11. We have provided our views on any findings, conclusions, and recommendations, as well as our planned corrective actions with respect thereto, to you for inclusion in the findings and recommendations referred to in your report on internal control over financial reporting and on compliance and other matters based on your audit of the financial statements performed in accordance with Government Auditing Standards. 82 Fayetteville Public Library Page 3 Federal Awards Programs (Uniform Guidance) 12. We have identified in the schedule of expenditures of federal awards all assistance provided (either directly or passed through other entities) by federal agencies in the form of grants, contracts, loans, loan guarantees, property, cooperative agreements, interest subsidies, commodities, insurance, direct appropriations, or in any other form. 13. We have disclosed to you all contracts or other agreements with service organizations, and we have disclosed to you all communications from the service organizations relating to noncompliance at the service organizations. 14. We have reconciled the schedule of expenditures of federal awards (SEFA) to the financial statements. 15. Federal awards-related revenues and expenditures are fairly presented, both in form and content, in accordance with the applicable criteria in the entity’s financial statements. 16. We have identified the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement regarding activities allowed or unallowed; allowable cost principles; cash management; eligibility; equipment and real property management; matching, level of effort, earmarking; period of performance of federal funds; procurement and suspension and debarment; program income; reporting; subrecipient monitoring; and special tests and provisions that are applicable to each of our federal awards programs. We have identified to you our interpretation of any applicable compliance requirements subject to varying interpretations. 17. We are responsible for complying, and have complied, with the requirements of Uniform Guidance. 18. We are responsible to understand and comply with the requirements of federal statutes, regulations, and the terms and conditions of federal awards related to each of our federal awards programs and have disclosed to you any and all instances of noncompliance with those requirements occurring during the period of your audit or subsequent thereto to the date of this letter of which we are aware. Except for any instances of noncompliance we have disclosed to you, we believe the entity has complied with all applicable compliance requirements. 19. We are responsible for the design, implementation, and maintenance of internal controls over compliance that provide reasonable assurance we have administered each of our federal awards programs in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. 20. We have made available to you all federal awards (including amendments, if any) and any other correspondence or documentation relevant to each of our federal awards programs and to our compliance with applicable requirements of those programs. 21. The information presented in federal awards program financial reports and claims for advances and reimbursements is supported by the books and records from which our financial statements have been prepared. 22. The costs charged to federal awards are in accordance with applicable cost principles. 23. The reports provided to you related to federal awards programs are true copies of reports submitted or electronically transmitted to the federal awarding agency, the applicable payment system, or pass-through entity in the case of a subrecipient. 83 Fayetteville Public Library Page 4 24. Amounts claimed or used for matching were determined in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) regarding cost principles. 25. We have disclosed to you any communications from federal awarding agencies and pass- through entities concerning possible noncompliance with the applicable compliance requirements for each of our federal awards programs, including any communications received from the end of the period of your audit through the date of this letter. 26. We have identified to you any previous compliance audits, attestation engagements, and internal or external monitoring related to the objectives of your compliance audit, including findings received and corrective actions taken to address any significant findings and recommendations made in such audits, attestation engagements, or other monitoring. 27. The summary schedule of prior audit findings correctly states the status of all audit findings of the prior audit’s schedule of findings and questioned costs and any uncorrected open findings included in the prior audit’s summary schedule of prior audit findings as of the date of this letter. 28. The reporting package does not contain any protected personally identifiable information. 29. No changes have been made in internal control over compliance or other factors that might significantly affect internal control, including any corrective action we have taken regarding significant deficiencies or material weaknesses in internal control over compliance subsequent to the period covered by the auditor’s report. Misappropriation, Misstatements, & Fraud 30. We have informed you of all current risks of a material amount that are not adequately prevented or detected by our procedures with respect to: a. Misappropriation of assets. b. Misrepresented or misstated assets, deferred outflows of resources, liabilities, deferred inflows of resourses, net position or fund balance. 31. We have no knowledge of fraud or suspected fraud affecting the entity involving: a. Management or employees who have significant roles in internal control over financial reporting, or b. Others when the fraud could have a material effect on the financial statements. 32. We understand that the term “fraud” includes misstatements arising from fraudulent financial reporting and misstatements arising from misappropriation of assets. Misstatements arising from fraudulent financial reporting are intentional misstatements, or omissions of amounts or disclosures in financial statements to deceive financial statement users. Misstatements arising from misappropriation of assets involve the theft of an entity’s assets where the effect of the theft causes the financial statements not to be presented in conformity with accounting principles generally accepted in the United States of America. 33. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in communications from employees, former employees, customers, analysts, regulators, suppliers, or others. 84 Fayetteville Public Library Page 5 34. We have assessed the risk that the financial statements may be materially misstated as a result of fraud and disclosed to you any such risk identified. Ongoing Operations 35. We acknowledge the current economic volatility presents difficult circumstances and challenges for our industry. Entities are potentially facing declines in the fair values of investments and other assets, declines in the volume of business, contributions, constraints on liquidity, difficulty obtaining financing, etc. We understand the values of the assets and liabilities recorded in the financial statements could change rapidly, resulting in material future adjustments to asset values, allowances for accounts receivable, capital, net realizable value of inventory, etc., that could negatively impact the entity’s ability to maintain sufficient liquidity. We acknowledge that you have no responsibility for future changes caused by the current economic environment and the resulting impact on the entity’s financial statements. Further, management and governance are solely responsible for all aspects of managing the entity, including questioning the quality and valuation of investments, inventory, and other assets; reviewing allowances for uncollectible amounts; evaluating capital needs and liquidity plans; etc. Related Parties 36. We have disclosed to you the identity of all of the entity’s related parties and all the related-party relationships of which we are aware. In addition, we have disclosed to you all related-party transactions and amounts receivable from or payable to related parties of which we are aware, including any modifications during the year that were made to related-party transaction agreements which existed prior to the beginning of the year under audit, as well as new related-party transaction agreements that were executed during the year under audit. Related-party relationships and transactions have been appropriately accounted for and disclosed in accordance with accounting principles generally accepted in the United States of America. 37. We understand that the term related party refers to: Affiliates. Entities for which investments are accounted for by the equity method. Trusts for the benefits of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management. Board of Trustee members and members of their immediate families. Management and members of their immediate families. Any other party with which the entity may deal if one party can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. Another party is also a related party if it can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The term affiliate refers to a party that directly or indirectly controls, or is controlled by, or is under common control with, the entity. 85 Fayetteville Public Library Page 6 Litigation, Laws, Rulings & Regulations 38. We are not aware of any pending or threatened litigation or claims whose effects should be considered when preparing the financial statements. We have not sought or received attorney’s services related to pending or threatened litigation or claims during or subsequent to the audit period. Also, we are not aware of any litigation or claims, pending or threatened, for which legal counsel should be sought. 39. We have no knowledge of communications, other than those specifically disclosed, from regulatory agencies, governmental representatives, employees, or others concerning investigations or allegations of noncompliance with laws and regulations, deficiencies in financial reporting practices, or other matters that could have a material adverse effect on the financial statements. 40. We have disclosed to you all known instances of violations or noncompliance or possible violations or suspected noncompliance with laws and regulations whose effects should be considered when preparing financial statements or as a basis for recording a loss contingency. 41. We have no reason to believe the entity owes any penalties or payments under the Employer Shared Responsibility Provisions of the Patient Protection and Affordable Care Act nor have we received any correspondence from the IRS or other agencies indicating such payments may be due. 42. We have not been designated as a potentially responsible party (PRP or equivalent status) by the Environmental Protection Agency (EPA) or other cognizant regulatory agency with authority to enforce environmental laws and regulations: Nonattest Services 43. You have provided nonattest services, including the following, during the period of this engagement: Preparing a draft of the financial statements and related notes and supplementary information Preparing a draft of the schedule of expenditures of federal awards Completing the auditee portion of the Form SF-SAC (Data Collection Form) through the Federal Audit Clearinghouse 44. With respect to these services: a. We have designated a qualified management-level individual to be responsible and accountable for overseeing the nonattest services. b. We have established and monitored the performance of the nonattest services to ensure they meet our objectives. c. We have made any and all decisions involving management functions with respect to the nonattest services and accept full responsibility for such decisions. d. We have evaluated the adequacy of the services performed and any findings that resulted. e. Established and maintained internal controls, including monitoring ongoing activities. 86 Fayetteville Public Library Page 7 f. When we receive final deliverables from you we will store those deliverables in information systems controlled by us. We have taken responsibility for maintaining internal control over these deliverables. Financial Statements & Reports 45. We have reviewed and approved a draft of the financial statements and related notes referred to above, which you prepared in connection with your audit of our financial statements. We acknowledge that we are responsible for the fair presentation of the financial statements and related notes. 46. With regard to supplementary information: a. We acknowledge our responsibility for the presentation of the supplementary information in accordance with the applicable criteria. b. We believe the supplementary information is fairly presented, both in form and content, in accordance with the applicable criteria. c. The methods of measurement and presentation of the supplementary information are unchanged from those used in the prior period, and we have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information. d. We believe the significant assumptions or interpretations underlying the measurement and/or presentation of the supplementary information are reasonable and appropriate. 47. We do not issue an annual report, nor do we have plans to issue an annual report at this time. Transactions, Records & Adjustments 48. All transactions have been recorded in the accounting records and are reflected in the financial statements. 49. We have everything we need to keep our books and records. 50. We have disclosed any significant unusual transactions the entity has entered into during the period, including the nature, terms, and business purpose of those transactions. 51. We are in agreement with the adjusting journal entries you have proposed, and they have been posted to the entity’s accounts. 52. We believe the effects of the uncorrected financial statement misstatements and omitted disclosures summarized in the attached schedule and aggregated by you during the current engagement are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Governmental Accounting & Disclosure Matters 53. Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported. 87 Fayetteville Public Library Page 8 54. With regard to deposit and investment activities: a. All deposit, repurchase and reverse repurchase agreements, and investment transactions have been made in accordance with legal and contractual requirements. b. Investments, derivative instrument transactions, and land and other real estate held by endowments are properly valued. c. Disclosures of deposit and investment balances and risks in the financial statements are consistent with our understanding of the applicable laws regarding enforceability of any pledges of collateral. d. We understand that your audit does not represent an opinion regarding the enforceability of any collateral pledges. 55. The financial statements include all component units, appropriately present majority equity interests in legally separate organizations and joint ventures with an equity interest, and properly disclose all other joint ventures and other related organizations. 56. We have identified and evaluated all potential fiduciary activities. The financial statements include all fiduciary activities required by GASB Statement No. 84, Fiduciary Activities, as amended. 57. Components of net position (net investment in capital assets, restricted, and unrestricted) and classifications of fund balance (nonspendable, restricted, committed, assigned, and unassigned) are properly classified and, if applicable, approved. 58. Capital assets, including infrastructure and intangible assets, are properly capitalized, reported, and, if applicable, depreciated or amortized. 59. We have appropriately disclosed the entity’s policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance is available and have determined that net position is properly recognized under the policy. 60. The entity has properly separated information in debt disclosures related to direct borrowings and direct placements of debt from other debt and disclosed any unused lines of credit, collateral pledged to secure debt, terms in debt agreements related to significant default or termination events with finance-related consequences, and significant subjective acceleration clauses in accordance with GASB Statement No. 88. 61. We have identified and evaluated all potential tax abatements, and we believe there are no material tax abatements. 62. The entity’s ability to continue as a going concern was evaluated and that appropriate disclosures are made in the financial statements as necessary under GASB requirements. 88 Fayetteville Public Library Page 9 63. The supplementary information required by the Governmental Accounting Standards Board, consisting of management’s discussion and analysis and budgetary comparisons, has been prepared and is measured and presented in conformity with the applicable GASB pronouncements, and we acknowledge our responsibility for the information. The information contained therein is based on all facts, decisions, and conditions currently known to us and is measured using the same methods and assumptions as were used in the preparation of the financial statements. We believe the significant assumptions underlying the measurement and/or presentation of the information are reasonable and appropriate. There has been no change from the preceding period in the methods of measurement and presentation. General Government Matters 64. The financial statements properly classify all funds and activities in accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, as amended. 65. All funds that meet the quantitative criteria in in GASB Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, as amended, and No. 37, Basic Financial Statements—and Management’s Discussion and Analysis-for State and Local Governments: Omnibus-an Amendment of GASB Statements No. 21 and No. 34, for presentation as major are identified and presented as such and all other funds that are presented as major are particularly important to financial statement users. 66. Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. 67. Revenues are appropriately classified in the statement of activities within program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal. 68. We have appropriately disclosed that the entity is following either its established accounting policy regarding which governmental fund resources (that is, restricted, committed, assigned, or unassigned) are considered to be spent first for expenditures for which more than one resource classification is available or is following paragraph 18 of GASB Statement No. 54 to determine the fund balance classifications for financial reporting purposes and have determined that fund balance is properly recognized under the policy. Accounting & Disclosures 69. All transactions entered into by the entity are final. We are not aware of any unrecorded transactions, side agreements or other arrangements (either written or oral) that are in place. 70. Except as reflected in the financial statements, there are no: a. Plans or intentions that may materially affect carrying values or classifications of assets, deferred outflows of resources, liabilities, deferred inflows of resourses, net position or fund balance. b. Material transactions omitted or improperly recorded in the financial records. c. Material unasserted claims or assessments that are probable of assertion or other gain/loss contingencies requiring accrual or disclosure, including those arising from environmental remediation obligations. 89 Fayetteville Public Library Page 10 d. Events occurring subsequent to the balance sheet/statement of net position date through the date of this letter, which is the date the financial statements were available to be issued, requiring adjustment or disclosure in the financial statements. e. Agreements to purchase assets previously sold. f. Arrangements with financial institutions involving compensating balances or other arrangements involving restrictions on cash balances, lines of credit or similar arrangements. g. Guarantees, whether written or oral, under which the entity is contingently liable. h. Known or anticipated asset retirement obligations. 71. Except as disclosed in the financial statements, the entity has: a. Satisfactory title to all recorded assets, and those assets are not subject to any liens, pledges, or other encumbrances. b. Complied with all aspects of contractual and grant agreements, for which noncompliance would materially affect the financial statements. Revenue, Accounts Receivable, & Inventory 72. Adequate provisions and allowances have been accrued for any material losses from: a. Uncollectible receivables. b. Excess or obsolete inventories. c. Purchase commitments in excess of normal requirements or at prices in excess of prevailing market prices. Estimates 73. We have identified all accounting estimates that could be material to the financial statements and we confirm the appropriateness of the methods and the consistency in their application, the accuracy and completeness of data and the reasonableness of significant assumptions used by us in making the accounting estimates, including those measured at fair value reported in the financial statements. 74. Significant estimates that may be subject to a material change in the near term have been properly disclosed in the financial statements. We understand that “near term” means the period within one year of the date of the financial statements. In addition we have no knowledge of concentrations, which refer to volumes of business, revenues, available sources of supply, or markets, investments, or deposits, existing at the date of the financial statements that would make the entity vulnerable to the risk of severe impact in the near term that have not been properly disclosed in the financial statements. 90 Fayetteville Public Library Page 11 Fair Value 75. With respect to the fair value measurements of financial and nonfinancial assets and liabilities, if any, recognized in the financial statements or disclosed in the notes thereto: a. The underlying assumptions are reasonable and they appropriately reflect management’s intent and ability to carry out its stated course of action. b. The measurement methods and significant assumptions used in determining fair value are appropriate in the circumstances for financial statement measurement and disclosure purposes and have been consistently applied. c. The significant assumptions appropriately reflect market participant assumptions. d. The disclosures related to fair values are complete, adequate, and in conformity with U.S. GAAP. e. There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements. Other Matters 76. We have identified and evaluated all potential subscription-based information technology arrangements, and we believe there are no material subscription-based information technology arrangements. _____________________________________________ David Johnson, Executive Director djohnson@faylib.org _____________________________________________ Tamika Ball, Finance & Accounting Director tball@faylib.org Attachment included: Schedule of Uncorrected Misstatements and Omitted Disclosures 91 Appendix B Fayetteville Public Library Summary of Uncorrected Misstatements and Omitted Disclosures, as applicable As of and for the Year Ended December 31, 2023 Financial Statement Impact As Reported Misstatements Subsequent to Misstatements % Change Total Assets and Deferred Outflows 60,513,401 -60,513,401 %- Total Liabilities and Deferred Inflows (6,924,960)(199,888)(7,124,848)%2.89 Net Position (53,588,441)-(53,588,441)%- General Revenues & Transfers (16,448,283)-(16,448,283)%- Net Program Revenues / Expenses 14,504,758 -14,504,758 %- Change in Net Position (1,943,525)-(1,943,525)%- Uncorrected misstatements from prior periods Prior Period Uncorrected Misstatement (debit/credit from prior year) None noted ------ ------ Total pre tax Income Statement --- Total pre tax Balance Sheet --- Summary of Omitted Disclosures Description of Omission or Other Misstatement Relevant Financial Statement Line Item(s) or Area(s) $ Amount if Applicable None noted - - - - 92 93 94 95 Code NE Date Approved Date Revised Policy Name Campus Curfew Purpose: The Fayetteville Public Library (FPL) is committed to ensuring a safe and welcoming environment for patrons, staff, and the community. In order to maintain security and prevent unauthorized access after- hours, a curfew will be enforced for the library campus. Curfew Hours: No individuals are allowed on the Fayetteville Public Library campus between 10:00 PM and 6:00 AM, with the following exception: • Parking Garage: Patrons may park vehicles in the library’s parking garage after the library has closed. Access is permitted for parking only and not for loitering, recreational, or non-parking activities. Exceptions: • The curfew does not apply to authorized library staff, security personnel, or individuals attending sanctioned after-hours events that have been approved by library management. • Public safety personnel (e.g., police, firefighters) and emergency services are exempt while performing their duties. Enforcement: Security staff and local law enforcement will monitor the library campus during curfew hours. Violations of this policy, including loitering or unauthorized entry, may result in removal from the premises and possible legal action. 96 97 To the Board and Management of the Fayetteville Public Library, First of all, I want to thank you for allowing me to be part of the library's efforts to demonstrate the importance of honeybees and other pollinators in today's ecology. It adds to the pride I have for all of what the library means to our city. Smokers of some sort have been used in beekeeping almost since the beginning of people’s interaction with bees, some 7,000 years ago. The purpose of the smoke is to mask or cover up the alarm pheromone that bees produce and react to anytime they feel disturbed. Even though I believe I took extreme care in the use of a smoker while caring for the bees on the roof, I will always feel apologetic for the accidental fire and the damage it did. For me it was a very humbling experience. Beekeepers are aware of the danger smokers can cause. Just prior to the fire on the roof of the library, a French company developed a fireless smoker that uses chemical vapors which also covers up those pheromones. (https://apisolis.com/en) I found that invention and ordered one the week of the fire. Going forward, there will no longer be fire-based smokers used on the library roof. Again, I appreciate your willingness to move forward with bees at the library. I also want to thank both the library staff and members of the board who have supported me and this effort. Most sincerely, Ed Levi, Library volunteer “resident beekeeper” 98