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HomeMy WebLinkAbout2009-08-17 - Agendas - Final F SCANNED FAYrmviLu Pvauc L.caanxY ' Bg°"" w°r& RECEIVE ® Board of Trustees AUG 14 200 August 17, 2009 4 pm Regular Meeting CITY OF FAY , LEy,LL� AGENDA CITYCLERKsD"W Ann Henry Board Room Lorraine Brewer, President Mike Malone, Secretary Dan Ferritor Beverly Schaffer, Vice-President Suzanne Clark Marla Hunt Elizabeth Jordan, Treasurer I . Call to order Il . Approval of minutes —June 15, 2009 regular meeting — page 2-3 A. Signed minutes 1 . June 2, 2009 special meeting — page 4 III . Reports A. Management reports 1 . June-July strategic plan progress — page 5-7 2 . July 2009 performance measures — page 8 3. June 2009 performance measures — page 9 4. Chart of the month: remote return use — page 10 B. Financial reports 1 . June 2009 budget comparison — page 11 2. June 2009 balance sheet — page 12-13 3. June 2009 profit and loss — page 14-16 • 4. July 2009 budget comparison — page 17 5. July 2009 balance sheet — page 18- 19 6. July 2009 profit and loss — page 20-22 C. Search Committee report (M. Malone) D. Audit Committee report (E. Jordan) — page 23-27 E. Art Committee report (E. Jordan) IV. Unfinished business V. New business A. Revisions to policies — page 28 1 . Policy KG: Computer resources and internet use — page 29-30 2. FG: Grant Review — page 31 3. JF: Fee schedule — page 32 B. Appointments to the FPL Foundation Board of Directors — page 33 C. Recommended revisions to the bylaws of the FPL Foundation — page 34-45 D. Staff presentation: Susan Foley, Director of Development VI . Adjournment VII . Executive session VIII . Attachments A. Projected 2009 meeting agendas B. Key upcoming events C. AR Democrat Gazette Best of the Best'09: Best Library - Fayetteville Public Library, June 28, 2009 D. City of Fayetteville distribution list (note structure re: FPL ED) E. CIP submission, June 29, 2009 F. ED applicants as of August 11 , 2009 G. Notification of $2000 grant from Target to FPL for family reading club, July 27, 2009 H. Notification of $35,000 gift from Wal-Mart Corporate Giving to FPLF for SRC, 5/21/09. • I . Notification from Arvest of $2000 from Baum Charitable Foundation for NEH Challenge Grant, 6/19/09. J. Notification of $8500 award for Arts in Education grant from the AR Arts Council , 7/1/09. K. Receipt of grant in the amount of $8496 from the AR Energy Office for the solar test bed project. L. Presentation "Solar Test Bed Project: An ICMA Public Library Innovation Grant," at the session entitled "Local Governments and Libraries: Working Togetper for Better Communities," American Library Association Annual Meeting (Chicago), July 11 , 2009. M. Article in Architectural Record re: Marlon Blackwell's design for the old FPL, June, 2009. Fayetteville Public Library • Board of Trustees Regular Meeting June 15, 2009 Minutes Prepared by S. Terry, Communications Manager Board Members present: L. Brewer, S. Clark, D. Ferritor, M. Hunt, E. Jordan and M. Malone. Absent: B. Schaffer. Staff present: S. Daniel, L. Schaper, S. Terry and S. Thorup. Press: S. Descant, The Morning News. I. The Board of Trustees meeting was called to order at 4:07 p.m. by L. Brewer. 11. L. Schaper introduced Susan Foley as the library's new director of development. She will begin working at the library full time on July 6. She is currently finishing up in the same role at Life Styles, Inc. and before that worked for the American Cancer Society. III. Approval of minutes. D. Ferritor made a motion to approve minutes from the June 2 meeting. E. Jordan seconded. All voted aye. IV. Reports. A.) Management reports — L. Schaper reported that the library received $35,000 from Wal-Mart for its 2010 Summer Reading Club. The SRC enrollment is already 26 percent higher than the total for 2008. Schaper said executive director applicants can apply through the library's website; several applications have already been received. S. Thorup announced that the library is participating in a community read of Devil's Highway with the University of Arkansas; the book's author will speak at the library during the annual Gathering of the Groups in October. Thorup announced that the library handed out 238 books to children as part of the Reading Roadshow program. The books were purchased through grants. Thorup announced the library's Twitter account has been established with a growing number of followers. Performance Measures — L. Schaper said circulation is up 4.5 percent for the year. The library achieved this year's high in number of self check outs in May. Schaper noted the number of holds filled has increased 24 • percent for the year. Also, volunteer hours are up about 21 percent. B.) Financial Report — S. Thorup (speaking on behalf of a vacationing C.Rew) said utilities dropped in May, giving some breathing room to the librarys budget before the summer heat begins. Thorup noted the library has made a 6-month investment with the Bank of Fayetteville due to low interest rates. V. Unfinished Business. A.) Personnel Policy Revisions — 1 .) PA-12: Paid time off (revision): The section was stricken regarding donating leave time and will be moved to its own policy. M. Malone made a motion to approve. S. Clark seconded. All voted aye. 2.) PA-13: Sick leave (revision): The word 'extended' needs to be removed from the phrase "extended sick leave." D. Ferritor made a motion to approve. M. Hunt seconded. All voted aye. 3.) PA-17: Leave donation bank (new): Allows employees to donate to a leave bank. Also, allows people to apply for donated time if they have run out. The policy lists reasons why employees may apply for the donated leave. S. Clark made a motion to approve. E. Jordan seconded. All voted aye. B.) Personnel Policy Revisions II — 1 .) PA-63: Disciplinary action (revised): This policy had not been reviewed since 1995. The city recently updated its discipline policy, and the library used many of the points from the city's policy. The new policy includes progressive discipline and better defines procedures for handling disciplinary measures. M. Hunt made a motion to approve. D. Ferritor seconded. All voted aye. 2.) PA-55: Appointments (revision): The city's policy replaced the librarys existing policy. The new policy prohibits an employee from serving in a position where an immediate family member is in direct supervision. The policy also does not allow employment of family members of the library board, Friends' board and Foundation board. M. Malone made a motion to amend the policy to include domestic partners in the definition of family. D. Ferritor seconded. All voted aye. S. Clark made a motion to approve the amended policy. M. Hunt seconded. All voted aye. C.) Executive Director Search — M. Malone said the library has advertised on the librarys website, in American Library Association's JobLIST and in the June 15 edition of Library Journal. M. Malone said applicants names will be posted on the website as their information is received. VI. New business. A.) Capital Improvement Projects budget submission 2010.2012 — The library • submits a CIP budget every two years; this money pays for items such as books, new buildings, 2 1 and equipment. This budget accounts for about 86 percent of the library's book budget. The • money provides about 25 percent of the library's computer budget. Library staff met with Board Finance Committee last week where it was concluded that the library would make its request based on maintaining its position in comparison with national and benchmark libraries while being mindful of the City's declining revenues. The library requested $335,000 for books and materials for 2010 and 2011 while projecting increases for 2012 through 2014 that would reinstate the former incremental increase. In the computer funding portion, the library has requested the funding to hold steady for the next five years at $23,000. A special meeting was set for Monday, July 20 at 4 p.m. to discuss the General Funds budget proposal. E. Jordan moved to approve; D. Ferritor seconded. All voted aye. B.) "Library Fan Card" proposal - The library is proposing a FPL fan card that new and existing patrons can purchase. The free card will still be available. The fan card will have an attractive image, and sales from that card will pay for a particular aspect of the library. Eco cards, for example, will include a picture of the building and be used to pay for environmentally friendly features in the library. The cost would be minimal because cards are already purchased on a regular basis. The cards would create advocates for the library. The cards would likely cost $3 to $5. Library staff will do additional homework on the cards and bring back a revision of the fee schedule policy at the library's board meeting in August. C.) Staff presentation: Summer Reading Club - L. Greenwood, manager of youth . services, discussed the 2009 Summer Reading Club, which kicked off June 6. Greenwood showed some of the marketing efforts, including the ads on the Ozark Regional Transit buses and the television commercial on KNWA and FOX. Registration to date is 1 ,668 elementary age readers; 237 listeners and 159 teens for a total of 2,064 - a 26 percent increase from the end of 2008. VII. Adjournment: D. Ferritor moved to adjourn. S. Clark seconded. All voted aye. Meeting adjourned at 5:35 p.m. • • 3 Fayetteville Public Library Board of Trustees Special Meeting • June 2, 2009 Minutes Prepared by S. Terry, Communications Manager Board Members present: L. Brewer, S. Clark, D. Ferritor, M . Hunt, E. Jordan and M . Malone. Absent: B. Schaffer. Staff present: S, Daniel , C. Rew, L. Schaper, S. Terry and L. Yandell . I. The special meeting of the Board of Trustees meeting was called to order at 4:06 p.m. by L. Brewer. II. Approval of the minutes. D. Ferrritor made a motion to approve the minutes from the May 18 meeting. M . Hunt seconded. All voted aye. III. New business. A) Executive Director Search: L. Brewer thanked the search committee for its work during the past week. Search committee member M . Malone said the search committee intends to look nationally for a new ED. Malone said the committee has met with 50 people during the past week, including library staff, city officials, community leaders, etc. 1 .) Job description review: D. Ferritor suggested posting the library's strategic plan along with information about the job description , etc. on the website. FPL's application for Library of the Year will also be posted. L. Schaper presented an update of the ED job description. M. Hunt made a motion to approve the new language in the ED job description. S. Clark seconded. All voted aye. 2.) Job advertisement approval: Malone presented the board a draft job ad that was based on the input from the groups and the information L. Schaper gave to the committee. Malone said the ad emphasized a director that values input from everyone within the organization , sees the library as a community leader and has a strong vision while handling the day-to-day activities. Malone suggested applications will be posted weekly and forwarded to search committee members. The applications will be posted on • the library's website. The ad will go to the state librarian, the local papers as well as library trade journals. S. Daniel will write a thank you letter to the applicants. Malone said the committee has determined at this time not to utilize a search firm or go to ALA's Mid-Year Conference to recruit potential applicants. 3.) Website review: L. Yandell and S. Terry presented the section of the website with information about the ED search. The information includes the job ad , job description, a timeline of events, etc. IV. Adjournment. S. Clark made a motion to adjourn. D. Ferritor seconded. All voted aye. The meeting adjourned at 4:59 p.m. • 4 FAyrmvcL.e PUBLIC UBRAEY • Strategic Plan Progress Report June — July 2009 Our Mission: To strengthen our community and empower our citizens through free and public access to knowledge. Our Vision: To be powerfully relevant and completely accessible. I . Access: Implement strategies to improve and extend access to library collection and services. a. Hours: NTR b. Facilities: i. Solar test bed project: ( 1) submitted quarterly reports to ICMA and AEO; (2) completed two conference calls with ICMA and two telephone interviews; (3) gave talk at ALA on project; (4) created website fplsolar.org and blog; and (5) arranged for kick-off collaboration building meeting. ii. Responding to landscape issues due to under-watering and plant selection. iii. Installed another fifty LEDs to complete conversion on level 100. iv. Completed cherry oversized book shelf for children's library. v. Completed carpet cleaning in the children's library niches. vi. Made repairs on drainage lines in parking garage. vii. Managed over 400 hours of volunteer time on facilities, e.g. dusting, window cleaning, polishing. viii. Led tours for America in Bloom judges, Garrison Financial, City of Branson officials. c. Branches: i. Discussed possible partnerships with OMNI Center and Pat Walker Senior Health Center. d. Website: i. Deployed in-house-developed SRC sign up system for Youth Services. ii. Transferred FPL video/audio content to streaming media server for better patron experience. • iii. Refining FPL's social media presence (Facebook and Twitter). iv. Added new web "customer" profiles to the library's website. v. Developed and deployed www.fplsolar.org blog. e. Computing and networking resources: i. Deployed 10 mini-laptops for in-house and out of building checkout. ii . Completed testing and configuration of new PC session and print control software (Envisionware). iii . Began deployment of DeepFreeze to the public computers to stabilize configurations. iv. Migrated some legacy server applications to new blade technology and took old hardware offline. v. Deployed Windows Media Server to stream original FPL content on the web. vi. Began departmental deployment of staff intranet, SharePoint. vii . Met with Polaris and several RFID vendors at ALA. f. Outreach services: i. Attended Family Literacy Night at Owl Creek Summer Camp to promote FPL. ii. Presented program on Sit, Stay, Read! at a Delta Society therapy dog class at Dog Party USA. 11 . Collections: Develop collections that are responsive to the needs and demands of its community. a. Adult materials: NTR b. Reference: i. Completely reclassified genealogy materials in four sections to improve access to the collection. ii. Further reduced size of the juvenile ref. collection to make more materials available for check out. iii. Withdrew non-circulating Children's Lit. collection, moving AR authored books to Fulbright collection. c. World languages: i. Added materials to the Spanish and German language collections. d. Youth services: i. Enhanced the display of media bags and the Parenting collection. e. Nonprint: NTR. f. E-collections: • i. Secured subscriptions to Demographics Now, Business & Company Resource Center, Biography Resource Center. ii. Evaluated computer skills teaching software created by LearningExpress Library. iii. Evaluated two online language learning products, Transparent Language Library & Mango Languages. iv. Evaluated GreenR database created by GaWCengage. III . Services: Define its essential activities and service levels. a. Programming and events: i. Art Committee approved outdoor exhibit by S. Fulbright, reviewed possible donation and recommended appraisal for a painting held by FPL since 1936. ii. Arranged for FHS models by UA architecture students to be on display. • iii . Continued to plan the Ed Begley Jr. event for October. iv. Continued SRC with multiple daily programs and independent reading/listening programs: 1 . Recorded staggering increases in the number of participants in the summer reading program: 2,058 independent readers through grade 5 (over 600 more than 2008) and 241 teens (over a 20% increase from 2008). 2. Continued multiple weekly offerings of regular story times. 3 . Offered free weekly movies throughout the summer for children and teens. 4. Began workshop series taught by Sue Pico, Artist in Residence (AR Arts Council grant). 5. Offered summer session of Sit, Stay, Read! pairing struggling readers with a therapy dog. v. Offered a professional development workshop for teachers and educators. vi. Completed Mountain Street Stage concert series with over 300 attendees. vii . Hosted Light Rail in NWA discussion with 167 in attendance and mounted a display. viii . Presented first evening workshop for Find It, Fund It through Nonprofit Resource Center. ix. Continued planning for Sept. 12 Ozark Writers Live! event. b. Self-service strategies: i. Use of remote returns is up by 10%. ii . Self-registrations and renewals are up by 28%. iii . Self-checkouts are up by 5% and reached 69,000 in a single month for the first time. c. Customer service: i. Two more staff members completed training to become Passport Acceptance Agents. ii. Processed 550 discs for re-surfacing and cleaning. iii. Added links to FPL's Facebook and Twitter presences on e-notifications. d. Staffing and volunteers: i . Hired Susan Foley as new Director of Development. ii . Assisted Board in search for new Executive Director re: website, ads, and accepting applications. iii. Presented talk to Foundation Board on circulation services. (DW) • iv. Attended AUTIS conference to present report on podcasting grant. (LY, ST) v. Participated in Title IX compliance training at the City. vi. 5 staff members attended ALA in Chicago. (LS, LY, HR , PH , WH) vii. Met with ALA Notable Books Council to make recommendations for 2009 list. (HR) viii. Participated in NISO RFID Working Group and Rosen Advisory Board meetings at ALA. (LS) ix. Sarah Terry selected to participate in Leadership Fayetteville XXIII . x. Completed three performance improvement teams, began presentations to staff and implementing recommendations. xi. Attended.webinar on ARRA government grants for nonprofits. IV. Visibility and value: Promote the contributions and value of the library to the greater Fayetteville area. a. Marketing plan; NTR b. Marketing (visibility) and communications i. Hosted FPL booth during Children's Day at the Farmer's Market. ii. Attended monthly meeting of businesses on and around Square. iii . Sent FPL welcome bookmarks to UA International Students Office. iv. Interviewed by Northwest Arkansas Times & KNWA re: Summer Reading Club at FPL. v. Met with UA re: display of FHS models and Community Design Center reps re: Light rail display. vi. Researched and designed new eco "fan" card, which will be available in September. vii. Completed majority of work on 2008 Annual Report. viii . FPL was featured in an ALA key note speech by W. Urbanksa (PBS host) about green libraries. c. Collaboration: i. FPL team worked Chamber membership drive; participated in two committees. ii. Participated in planning meetings for UA One Book. . .One Community read in October. iii. Attended city's Vendor Workshop and Reverse Trade Show iv. Met with WRMC and Omni Peace Center to discuss collaborative collections and cataloging. • v. Met with John Coleman, City of Fayetteville, to discuss green program series in 2010. vi. Met with Jean Cosgrove at Area Agency on Aging to plan family caregiver workshop for November. vii. Met with UA Survey Research Center to discuss data collection for the Nonprofit Resource Center. viii. Attended lunch workshop with City of Bran6son officials and staff. ix. Met with Washington Co. Head Start Director to discuss pilot expansion of Reading Roadshow. V. Sustainable funding: Seek funding sources that are reliable, sustainable, and adequate to carry out the Library's mission; these sources will grow as the community grows. a. Funding strategies and sources: • i. Completed 2010 CIP and operating budget submission to City. ii. Followed up on insurance claim for damaged drop box, received money, ordered replacement. iii. Attended meeting with service providers to seek NEH funding. (SF,LS,CR) iv. Held Audit Committee. Auditor presented findings and answered questions. v. Held two Finance Committee meetings. Discussed a Letter of Determination for the Foundation: vi . Filed Foundation 990. vii. Filed required eRate documents. viii. Received $2000 grant from Target to create a family reading club. ix. Received $700 from Altrusa International local chapter for teen programming. x. Foundation received $2000 from the Baum Charitable Foundation. i. Attended meeting with P&G representatives about future funding for Reading Roadshow, etc. ii. Met with UA representatives to discuss textbook donation program. b. Advocacy: i. Participated in the AR Opportunity Online Broadband Summit in LR . (LS; M . Kinion, Chamber) c. Friends and Foundation i. Friends held staff appreciation potluck on June 25. ii. Presented proposal to sell textbooks. The Board directors voiced support. iii. 220 current Friends members, 27 renewal notification letters mailed, 19 memberships renewed iv. Received $5000 refund from Jones Center for Fayetteville film. Gathering info on next steps. v. Met with the Wal-Mart Foundation to discuss future funding needs and their grant timelines. vi. Revamped Gift Works prompts for more ease with the donor software. vii. Revamped Roberta Fulbright Society guidelines and goals. viii . Ed Begley Jr. event: 1) Submitted a request for dinner sponsorship, 2) mailed Save-the-Date cards, 3) Met with luncheon sponsors to coordinate event details. ix. Created sponsorship template to be used in all future presentations. x. Created NEH request template to be used in all future presentations. • • 7 yW' O O O O ONi t§ § § § pi Q O O) N N m (O N Q r t0 N W t7 N N Y N A n O O O O Q 1 N m O tp p A N Q O N tO O O 06 a O m A A A N Of N N 10 t0 1n a W aR aR ae aR aR ae ae aR aR aR aR dt ae ae ae aR ae ae ae SQTi Q 4 C tf QN NW CN? N NN N 4 O � NN pO p1 Fy A �O Q � Clf U O f0 N m 1n O h PO m ' (O r ^ C�C < N fnp 101 Ol COC CO fNV A G' OI O� CZI qY p m N tC N O N Q f7 cs N N N ' W� p C6� N 1` Oe!cs- N O C voi ma a A c n ca w _ in m � �i v � o m u`�i ori Q m a � N �p t+f N a7 C O O ae O O O O O O O O O O O O O O O O O O O O O U W O O 0 = at o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 p o Z U S � G o o • N e e aR o o e o 0 0 0 0 o O o 0 0 0 0 0 0 0 0 0 0 �1% p O � W G N CL ci e g a' N t7 N O N t0 N Q O f7 A N m f0 A O O Of O C f0 fG O 0 m N th Q m N ' N N Q OJ t0 Q J O wi m e wr l0 O N A_ b 1p Q N lO 7 NM 1A r� N Ol N r O ka r ' (O � O f0 b p � f0 t0 ffpp o Q O N ^ b Ol ^ m Q Oel ONl r N 0 N m O O ^ OJ O L '} t+! 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N Q A N A_ N A m m wi m CL 8 _ U JIL LL Y 9�_ � { _ 3 � o; {� y� Ocq G Y N t0 O CP p Y cNi Vf {ma{yy N m Y m N C4 m Y mqN y� m ��yy (x0. t0 0 O ^ A W m Q fG O O ^ O IL f0 < <p ^ fe O N N Q (tel C O pV� (pV� m N 1� �typ C� t�yV qp q �(pp yypp 'jQ �y� W W�^ O Y N Am 1` t0 N Cl m Yf Yf ^ 01 N O O s ti l m Q Yf Yf m d ^ O C Cj ' O pp QQ N �O Q q p O C b O Lip � 9 V tg 0 Z IA 00 00 E (*4 cu (U 8 8 10 Fayetteville Public Library Budget Comparison July 31 , 2009 Current Monthly Current % Budget Annual Month 7 Month Budget YTD YTD YTD Budget Sources of Funds Millage Receipts 98,363 989363 688,541 58.33% 688,544 1 ,180,361 City of Fayetteville 132,607 1329607 925,586 58.17% 928,246 11591 ,278 City CIP books 26,500 269500 185,500 58.33% 185,500 3189000 City CIP other 11917 11917 13,419 58.34% 13,417 239000 State Aid 91916 62,470 52.50% 699414 118,996 Foundation 11 ,833 92,000 64.79% 829833 142,000 Friends 2,917 0 0.00% 209417 35,000 All Other Sources 25,937 23,197 195,921 70.38% 162,377 278,360 Total Sources of Funds 285,324 284,053 11967,516 53.36% 11988,370 316869995 Expenses Salaries & Wages 145,829 150,591 974,819 53.94% 11054,136 1 ,807,091 Payroll Taxes & Work Study 11 ,824 12,623 82,637 54.55% 88,364 151 ,481 Employee Insurance 99574 10,451 64,916 51 .76% 73,156 125,410 Retirement 11 ,259 13,341 74,964 46.83% 93,387 160,092 Processing Supplies 932 31083 10,709 28.94% 219583 37,000 IT-Hardware 49,493 12,333 56,955 38.48% 86,333 148,000 IT-Software & Maintenance 59374 71750 52,866 56.85% 54,250 939000 Cleaning Supplies 29438 1 ,500 8,290 46.06% 10,500 189000 • Other Supplies 31323 41917 20,761 35.19% 34,417 59,000 Youth Programming 9,279 2,946 22,369 63.28% 20,621 35,350 Adult Programming 0 29917 119422 32.63% 20,417 35,000 Library Materials 54,480 33,055 207,697 52.36% 231 ,388 396,665 Telephone & Internet 2,647 3,383 13,971 34.41 % 239683 409600 Utilities 81459 11 ,083 66,872 50.28% 77,583 133,000 Postage 11509 31100 61346 17.06% 21 ,700 37,200 Travel & Training 5,667 . 3,708 21 ,894 49.20% 25,958 44,500 Prof./Contractual Services 2,492 59755 42,439 61 .45% 40,286 69,061 Landscape Maint. 989 21083 8,858 35.43% 14,583 25,000 Building/Equip. Maint. 6,685 209167 23,078 9.54% 141 ,167 242,000 Insurance 500 2,787 46.45% 3,500 6,000 Public Rel. & Other 2,066 31192 28,348 74.02% 22,342 38,300 Furniture & Equipment 3,333 29,699 74.25% 23,333 40,000 Total Expenses 334,319 311 ,813 1 ,8329697 48.98% 2,182,688 31741 ,750 Excess/Deficit -48,995 -27,760 1341819 -1949317 -54,755 • 11 10:34 AM Fayetteville Public Library 08/11/09 Balance Sheet Cash Basis As of July 31 , 2009 Jul 31, 09 ASSETS • Current Assets Checking/Savings General Operating Funds CD 100,000.00 Bank of Fayetteville-deposits 54,331.58 Petty Cash 408.00 Total General Operating Funds 154,739.58 Merrill Lynch-WCMA Operating portion of account 1 ,021 ,972.37 Total Merrill Lynch-WCMA 1 ,021 ,972.37 Schwab -Millage 4108-2175 1 ,031,237.18 1125 • Schwab Institutional - longterm 188,572.53 For long term Facilities repairs & replacements 322,308.40 For major repair & replacement of furniture ✓{ equipment 212,998.77 For major replacements of Tech. Items, conveyor, phone system... 256,538.39 Total Checking/Savings 3,188,367.22 Other Current Assets 1220 • Due to/ from other Gov. Units 1,229,357.83 1250 • Prepaid Expenses 51 ,620.25 Total Other Current Assets 1 ,280,978.08 Total Current Assets 4,469,345.30 Fixed Assets Fixed Assets Library Buildings 20,770,329.47 Books S Publications 349,356.00 Equipment 19053,100.63 • Furniture S Fixtures 233,599.94 Accumulated Depreciation -2,445,965.92 Total Fixed Assets 19,960,420.12 Library Owned Art 150,000.00 Total Fixed Assets 20,110,420.12 TOTAL ASSETS 24,579,765.42 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable -300.00 Total Accounts Payable -300.00 Other Current Liabilities Accounts Payable-Other A/P Vacation accrual 136,323.65 A/P Salaries S Wages Accrual 16,454.71 A/P Other Payroll Liabilities 37,734.39 1929 • A/P Sick Time 54,906.18 Accounts Payable-Other - Other 12,040.86 Total Accounts Payable-Other 257,459.79 Payroll Tax Liabilities State Unemployement Payable 277.41 Payroll Tax Liabilities - Other 28.90 Total Payroll Tax Liabilities 306.31 Other Payroll Liabilities ' Health & Dental Insurance 1 ,585.20 • Total Other Payroll Liabilities 1.58520 Total Other Current Liabilities 259,351.30 12 Page 1 10:34 AM Fayetteville Public Library 08/11/09 Balance Sheet Cash Basis As of July 31 , 2009 • Jul 31, 09 Total Current Liabilities 2599051.30 Total Liabilities 259.051.30 Equity Investment In Fixed Assets 20,110.420.12 Fund Balance-Undesignated 3,338.892.34 Fund Balance-Reserved facilitle major repairs & rep 269,873.40 for reparis & replacements 243,648.39 f & f repairs & replacements 212,998.77 Total Fund Balance-Reserved 726,520.56 Fund Balance-Current Year Net 4,039.70 Net Income 140,841.40 Total Equity 24,320,714.12 TOTAL LIABILITIES & EQUITY 24,9799765.42 • • 13 Page 2 10:37 AM Fayetteville Public Library 0811109 Profit & Loss YTD Comparison Cash Basis July 2009 Jul 09 Jan - Jul 09 • Ordinary Income/Expense Income Revenue & Support 4150 • Miscellaneous Income 4151 • Program fees 20.00 221.00 4153 • Merchandise Sales 536.25 3,497.70 4500 • Misc. M.J. 4501 • Designated Gifts Other 72.42 288.09 4505 • Adult Designated gifts 1 ,000.00 1,145.00 4530 • Childrens Designated Gifts 2,700.00 2,848.00 4500 • Misc. M.J. - Other 3.35 174.52 Total 4500 • Mise. M.J. 3,775.77 4,455.61 4150 • Miscellaneous Income - Other 6,029.07 70,918.69 Total 4150 • Miscellaneous Income 10,361.09 79,093.00 Cafe Rental 0.00 7,000.00 charges for set up and equipm 464.50 2,389.50 Fines & Fees Fees collected at front desk 13,145.56 89,219.00 4315 • Library Cards 102.00 994.00 4320 • Research & Misc. Genealogy 31.00 379.00 4360 • Lost and Paid 4365 • Refund of Lost & Paid -49.00 -555.19 4360 • Lost and Paid - Other 142.88 696.18 Total 4360 • Lost and Paid 93.88 140.99 4370 • Damaged and Paid 59.98 441.27 4380 • Copier and Printer Income 1,957.63 13,167.95 4390 • Short and Over -492.69 1 ,066.52 Fines & Fees - Other 0.00 -1 ,000.00 Total Fines & Fees 14,897.36 104,408.73 • Interest 4401 • Interest-Operating 213.83 1,685.75 Dividends on Millage monies 0.00 345.56 Total Interest 213.83 2,031 .31 State Aid to Libraries state aid 0.00 62,470.00 Total State Aid to Libraries 0.00 62,470.00 Total Revenue & Support 25,936.78 257,392.54 Total Income 25,936.78 257,392.54 Expense Operating Expenses Office Supplies 5110 • Administration Expenses 3,322.95 20,458.96 Foundation, marketing and Volunteer needs 1,641.77 22,441 .06 computer supplies & minor eq. 5114 • Computer Software, Llc. & Malnt 5,373.59 50,384.26 5115 • Computer hardware & supplies 49,492.51 56,953.47 annual charges 0.00 2,480.00 Total computer supplies & minor eq. 540866.10 109,817.73 5130 • Childrens Program 5131 • Young Children Prog. & Supplies 8,326.58 19,015.01 5133 • Young Adult Expenses 952.24 3,094.24 5130 • Childrens Program - Other 0.00 255.69 Total 5130 • Childrens Program 9.278.82 22,364.94 Adult prog. expenses 0.00 11 ,421 .83 • 5140 • Book Repair & Circ. Supplies 932.34 10,715.22 supplies for cleaning the bdg 2,438.19 8,289.42 signage materials 291.56 622.38 for staff & volunteers 0.00 33.00 14 Pagel 10:37 AM Fayetteville Public Library 08/11/09 Profit & Loss YTD Comparison Cash Basis July 2009 • Jul 09 Jan - Jul 09 Total Office Supplies 72,771.73 206,164.54 Postage 1 ,509.26 6,345.62 Travel & Training 5,667.02 21,893.74 Public Notice 0.00 4,703.72 5725 • Public Relations 132.74 848.66 Professional Services 2,491 .95 42,439.67 Equipment & furnishings 0.00 29,699.23 Utilities Telephone & Internet 2,646.55 13,970.21 Utilities - Other 8,458.50 66,871.25 Total Utilities 11 ,105.05 80,841.46 Insurance-General 0.00 2,787.00 Total Operating Expenses 93,677.75 395,723.64 Salaries & Wages Adult Services 22,613.34 156,620.79 Materials processing 90618.04 70,688.93 Children's Library 18,604.60 1209973.94 Circulation 29,421 .25 192,655.96 Custodial 5,603.81 43,987.86 Administration 44,303.87 283,188.07 6496 Vacation Time Used 14,685.31 91 ,101 .42 6499 Sick Time Used 979.21 13,568.77 Salaries & Wages - Other 0.00 2,033.39 Total Salaries & Wages 145,829.43 974,819.13 Payroll Expenses FICA/Medicare Expense 110075.71 749046.02 • Payments to UofA for students 0.00 2,925.10 Contract for cleaners 471 .07 471 .07 State Unemployment Expense 277.41 51195.45 Voluntary AD & D 88.78 591 .58 Long Term Disability 387.67 2,585.11 Life Insurance 297.56 2,004.96 Total Payroll Expenses 12,598.20 87,819.29 Employee Benefit Expenses Health & Dental Insurance 71760.12 52,669.44 Company paid portion of HSA 1,039.51 7,064.17 Retirement Contributions 11 ,259.02 71,796.95 6655 • Retirementment Plan Expenses 0.00 3,166.90 Total Employee Benefit Expenses 20,058.65 134,697.46 Publications Book Acquisitions all books child & adult 20,401.52 122,426.91 7120 • Adult Reference Materials 2,963.56 14,571.47 7140 Genealogical Materials 54.95 508.18 7160 • Children Books 0.00 217.82 Total Book Acquisitions 239420.03 137,724.38 7130 • Electronic Resources 17,014.00 23,108.98 Periodicals 11,062.00 11,674.95 Audio Visuals 7610 • Film/DVD 908.00 25,624.77 7620 • Audio 1 ,936.41 8,482.53 7640 • Music 139.18 1,080.77 Total Audio Visuals 20983.59 35,188.07 Total Publications 549479.62 207,696.38 • Building & Equipment Building & Grounds 0.00 2,011 .21 Landscape Maintenance 988.64 8,856.33 Building Maintenance 6,685.20 20,247.38 Office Machine Maintneance 0.00 819.38 15 Page 2 10;37 AM Fayetteville Public Library 08111109 Profit & Loss YTD Comparison Cash Basis July 2009 Jul 09 Jan - Jul 09 • Total Building & Equipment 7,673.84 31 ,934.30 Total Expense 334,317.49 1 ,832,690.20 Net Ordinary Income -308,380.71 -1,575,297.66 Other Income/Expense Other Income Inter-Agency Transfers Transfer from City 159,088.00 1 ,136,619.00 9150 • Transfer-Mlllage 35,698.85 529,520.06 Transfers from Foundation 0.00 50,000.00 Total Inter-Agency Transfers 194,786.85 1,716,139.06 Total Other Income 194,786.85 1 ,716,139.06 Net Other Income 194,786.85 1 ,716,139.06 Net Income -113,593.86 140,641.40 • • 16 Page 3 Fayetteville Public Library Budget Comparison June 30, 2009 Current Monthly Current % Budget Annual Month 6 Month Budget YTD YTD YTD Budget Sources of Funds Millage Receipts 98,363 98,363 590,178 50.00% 590,181 1 ,180,361 City of Fayetteville 132,607 132,607 792,979 49.83% 795,639 19591 ,278 City CIP books 269500 269500 1599000 50.00% 159,000 318,000 City CIP other 1 ,917 19917 119502 50.01 % 119500 23,000 State Aid 329435 99916 62,470 52.50% 59,498 118,996 Foundation 119833 92,000 64.79% 71 ,000 142,000 Friends 21917 0 0.00% 17,500 359000 All Other Sources 19,615 23,197 169,984 61 .07% 139,180 2789360 Total Sources of Funds 311 ,437 307,250 1 ,878,113 50.94% 1 ,843,498 3,686,995 Expenses Salaries & Wages 143,802 150,591 8289990 45.87% 903,546 19807,091 Payroll Taxes & Work Study 11 ,254 12,623 70,813 46.75% 75,741 151 ,481 Employee Insurance 9,885 10,451 55,342 44.13% 62,705 125,410 Retirement 119200 139341 63,705 39.79% 80,046 160,092 Processing Supplies 29243 31083 9,777 26.42% 18,500 37,000 IT-Hardware 307 12,333 7,462 5.04% 749000 148,000 IT-Software & Maintenance 79093 7,750 47,492 51 .07% 46,500 93,000 Cleaning Supplies 847 11500 5,852 32.51 % 91000 189000 • Other Supplies 39550 41917 17,438 29.56% 29,500 59,000 Youth Programming 39966 2,946 139090 37.03% 17,675 35,350 Adult Programming 900 21917 11 ,422 32.63% 17,500 35,000' Library Materials 319152 33,055 1539217 38.63% 198,333 396,665 Telephone & Internet 2,520 3,383 119324 27.89% 20,300 409600 Utilities 79517 11 ,083 589413 43.92% 66,500 1339000 Postage 2,028 3,100 4,837 13.00% 189600 379200 Travel & Training 61073 3,708 16,227 36.47% 229250 44,500 Prof./Contractual Services 11 ,565 5,755 39,947 57.84% 349531 699061 Landscape Maint. 19691 2,083 71869 31 .48% 12,500 25,000 Building/Equip. Maint. 39908 20,167 16,393 6.77% 121 ,000 242,000 Insurance 500 2,787 46.45% 31000 6,000 Public Rel. & Other 41088 3,192 26,282 68.62% 19,150 38,300 Furniture & Equipment 29091 3,333 29,699 74.25% 20,000 40,000 Total Expenses 267,680 311 ,813 1 ,498,378 40.04% 11870,875 3,741 ,750 Excess/Deficit 43,757 -41563 379,735 -27,377 -54,755 • 17 10:33 AM Fayetteville Public Library 08/11/09 Balance Sheet Cash Basis As of June 30, 2009 Jun 30, 09 • ASSETS Current Assets Checking/Savings General Operating Funds CD 100,000.00 Bank of Fayetteville-deposits 33,851 .05 Petty Cash 408.00 Total General Operating Funds 134,259.05 Merrill Lynch-WCMA Operating portion of account 1 ,090,244.15 Total Merrill Lynch-WCMA 1 ,090,244.15 Schwab -Miliage 4108-2175 1,095,837.33 1125 • Schwab Institutional - longterm 188,572.53 For long term Facilities repairs & replacements 322,308.40 For major repair & replacement of furniture & equipment 212,998.77 For major replacements of Tech. Items, conveyor, phone system... 256,538.39 Total Checking/Savings 3,300,758.62 Other Current Assets 1220 • Due to/ from other Gov. Units 1 ,229,357.83 1250 • Prepaid Expenses 51,620.25 Total Other Current Assets 1 ,280,978.08 Total Current Assets 4,581 ,736.70 Fixed Assets Fixed Assets Library Buildings 20,770,329.47 Books & Publications 349,356.00 Equipment 1 ,053,100.63 • Furniture & Fixtures 233,599.94 Accumulated Depreciation -2,445,965.92 Total Fixed Assets 19,960,420.12 Library Owned Art 150,000.00 Total Fixed Assets 20,110,420.12 TOTAL ASSETS 24,692,158.82 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable -1 ,225.00 Total Accounts Payable -11225.00 Other Current Liabilities Accounts Payable-Other A/P Vacation accrual 136,323.65 A/P Salaries & Wages Accrual 16,454.71 AIP Other Payroll Liabilities 37,734.39 1929 • A/P Sick Time 54,906.18 Accounts Payable-Other - Other 12,040.86 Total Accounts Payable-Other 257,459.79 Payroll Tax Liabilities 160.31 Other Payroll Liabilities Health & Dental Insurance 1 ,274.39 Supplemental Insurance 179.35 Total Other Payroll Liabilities 1 ,453.74 Total Other Current Liabilities 259,073.84 • Total Current Liabilities 257.848.84 Total Liabilities 18 257,848.84 Page 1 10:33AM Fayetteville Public Library 08/11/09 Balance Sheet Cash Basis As of June 30, 2009 Jun 30, 09 • Equity Investment In Fixed Assets 209110,420.12 Fund Balance-Undesignated 31338,892.34 Fund Balance-Reserved facili0s major repairs & rep 269,873.40 for reparis & replacements 243,648.39 f & f repairs & replacements 212,998.77 Total Fund Balance-Reserved 726,520.56 Fund Balance-Current Year Net 4,039.70 Net Income 254,435.26 Total Equity 24,434,307.98 TOTAL LIABILITIES & EQUITY 24,892,156.82 • • 19 Page 2 8,28 AM Fayetteville Public Library 07115109 Profit & Loss YTD Comparison Cash Basis June 2009 Jun 09 Jan - Jun 09 • OrdinaryIneomelExpense Income Revenue & Support 4150 • Miscellaneous Income 4151 • Program fees - 21 .00 201.00 4153 • Merchandise Sales 592.05 2,961.45 4500 • Mise. MJ. 4501 • Designated Gifts Other 9.00 215.67 4505 • Adult Designated gifts 0.00 145.00 4530 • Children Designated Gltb 0.00 148.00 4500 • Miss N.J. - Other 15.76 171 .17 Total 4500 • Misc. N.J. 24.76 679.84 4150 • Miscellaneous Income - Other 0.00 64,889.62 Total 4150 • Miscellaneous Income 637.81 68,731.91 Cafe Rental 1 2,000.00 7,000.00 charges for set up and equlpm 310.00 1,925.00 Fines &fees Fees collected at front desk 13,600.85 76,073.44 4315 • Library Cards 30.00 892.00 4320 • Research & Misc. Genealogy 39.00 348.00 4380 • Lost and Paid 4385 • Refund of Lost & Paid -82.55 -506.19 4360 • Lost and Paid - Other 36.52 553.30 Total 4360 • Lost and Paid 46.03 47.11 4370 • Damaged and Paid 112.71 381.29 4380 • Copier and Printer Income 1,734.75 11,210.32 4390 • Short and Over 990.15 1 ,559.21 Fines & Fees - Other 0.00 -1 ,000.00 Total Fines & Fees 16,461 .43 89,511 .37 • Interest 4401 • Interest-Operating 206.08 1 ,471.92 Dividends on Millage monies 0.00 345.56 Total Interest 206.08 1 ,817.48 State Aid to Libraries state aid 32,435.00 62,470.00 Total State Aid to Libraries 32,435.00 62,470.00 Total Revenue & Support 52,050.32 231 ,455.76 Total Income 52,050.32 231,455.76 Expense Operating Expenses Office Supplies 5110 • Administration Expenses 39523.25 17,136.01 Foundation, marketing and Volunteer needs 2,293.23 20,799.29 computer supplies & minor eq. 5114 - Computer Software, Lia & Maint 49612.82 45,010.67 5115 • Computer hardware & supplies 306.75 71460.96 annual charges 2,480.00 2,480.00 Total computer supplies & minor eq. 7,399.57 549951.63 5130 • Children Program 5131 • Young Children Prog. & Supplies 2,990.00 109693.52 5133 • Young Adult Expenses 976.39 2,142.00 5130 • Children Program - Other 0.00 255.69 Total 5130 • Children Program 3,966.39 13,091.21 Adult pog. expenses 900.00 119421.83 • 5140 . 8.ook Repair & Circ. Supplies 2,243.41 9,777.79 supplies for cleaning the bdg 847.24 59851.23 signage materials 2645 . 330.82 for staff & volunteers 0.00 33.00 20 Pagel 6:26 AM Fayetteville Public Library 07115,89 Profit & Loss YTD Comparison Cash Basis June 2009 Jun 09 Jan - Jun 09 • Total Office Supplies 21,199.74 133,382.81 Postage 2,027.44 4,836.36 Travel & Training 6,073.07 16,226.72 Public Notice 19794.17 4,703.72 5725 • Public Relations 0.00 715.92 Professional Services 111584.97 39,947.72 Equipment & furnishings 2,091.48 29.699.23 Utilities Telephone & Internet 2,520.14 11,323.66 Utilities - Other 7,516.77 58.412.75 Total Utilities 10,036.91 69,736.41 Insurance-General 0.00 2,787.00 Total Operating Expenses 54,787.78 302,045.89 Salaries & Wages Adult Services 19,670.34 134,007.45 Materials processing 10,295.94 61 ,070.89 Childrenh Library 17,882.77 102,369.34 Circulation 30,052.30 163,234.71 Custodial 5,447.55 38.384.05 Administration 41,647.62 238,884.20 8498 Vacation Time Used 16,962.32 76,416.11 6499 Sick Time Used 1,843.61 12,589.56 Salaries & Wages - Other 0.00 29033.39 Total Salaries & Wages 143,802.45 828,989.70 Payroll Expenses FICAIMedicare Expense 10,920.68 62.970.31 Payments to UWA for students 0.00 2,925.10 • State Unemployment Expense 332.76 4,918.04 Voluntary AD & D 67.53 502.80 Long Tenn Disability 387.67 2,197.44 Life Insurance _ 318.19 1 ,707.40 Total Payroll Expenses 12,026.83 75,221.09 Employee Benefit Expenses Health & Dental Insurance 89072.29 449909.32 Company paid portion of HSA 19039.51 6,024.66 Retirement Contributions 11,200.20 60,537.93 6655 • Retirementment Plan Expenses 0.00 3,166.90 Total Employee Benefit Expenses 20,312.00 114,638.81 Publications Book Acquisitions all books child & adult 24,032.16 102,025.39 7120 • Adult Reference Materials 1,799.12 11,607.91 7140 Genealogical Materials 308.19 453.23 7160 • Children Books 0.00 217.82 Total Book Acquisitions 26,139.47 114,304.35 7130 • Electronic Resources 1,839.00 6,094.98 Periodicals 266.90 612.95 Audio Visuals 7610 • FIImIDVD 1,123.24 24,716.77 7620 • Audio 1,561 .23 6,546.12 7600 • Music 222.38 941.59 Total Audio Visuals 2,906.85 32,204.48 Total Publications 31.152.22 153.216.76 • Building & Equipment Building & Grounds 52.40 21011.21 Landscape Maintenance 1,691.09 7.867.69 Building Maintenance 3,855.80 13,562.18 Office Machine Maintneence 0.00 819.38 Total Building & Equipment 21 5;599.29 24,260.46 Page 2 828 AM Fayetteville Public Library 07115M Profit & Loss YTD Comparison Cash Basis June 2009 Jun 09 Jan - Jun 09 Total Expense 267,680.57 1 ,498,372.71 • Net Ordinary Income -215,630.25 -1 ,266,916.95 OtherIncome/Expense Other Income Irder-Agency Transfers Transfer from City 159,088.00 9779531.00 9150 • Transfer-village 549156.43 493,821.21 . Transfers from Foundation 0.00 50,000.00 Total Inter-Agency Transfers 213,244.43 1 ,521 ,352.21 Total Other Income 213,244.43 19521 ,352.21 Net Other Intone 213,244.43 1 ,521 ,352.21 Net Income -2,385.82 254,435.26 • • 22 Page 3 BKOup 107 N 37M Street, Suite 200 P.O. Box 1893 Rogers, AR 72757-1893 • CPAs & Advisors 479.636.5267 Fax 479.636.0898 w .bkci, o Board of Trustees and Management Fayetteville Public Library Fayetteville, Arkansas As part of our audit of the financial statements of Fayetteville Public Library as of and for the year ended December 31 , 2008, we wish to communicate the following to you. AUDIT SCOPE AND RESULTS Auditor's Responsibility Under Auditing Standards Generally Accepted in the United States of America An audit performed in accordance with auditing standards generally accepted in the United States of America is designed to obtain reasonable, rather than absolute, assurance about the financial statements. In performing auditing procedures, we establish scopes of audit tests in relation to the financial statements taken as a whole. Our engagement does not include a detailed • audit of every transaction. Our engagement letter more specifically describes our responsibilities. These standards require communication of significant matters related to the financial statement audit that are relevant to the responsibilities of those charged with governance in overseeing the financial reporting process. Such matters are communicated in the remainder of this letter or have previously been communicated during other phases of the audit. 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. An audit of the financial statements does not relieve management or those charged with governance of their responsibilities. Our engagement letter more specifically describes your responsibilities. Ouslitative Aspects of Significant Accounting Policies and Practices SirniRcant Accountine Policies The Library's significant accounting policies are described in Note 1 of the audited financial statements. With respect to unusual accounting policies or accounting methods used by the Library for unusual transactions, we call your attention to the following topics: • No matters are reportable. 2sPraxit . experience BKO "�"C" INDEPENDENT ALLIANCE OF INDEPENDENT FIq YS Alternative Accounting Treatments • We had discussions with management regarding alternative accounting treatments within accounting principles generally accepted in the United States of America 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. Manazement Judiments and Accounting Estimates Accounting estimates are an integral part of financial statement preparation by management, based on its judgments. The following areas involve 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: Deferred revenue Pledges receivable, net Depreciation Financial Statement Disclosures The following areas involve particularly sensitive financial statement disclosures for which we • are prepared to. discuss the issues involved and related judgments made in formulating those disclosures: No matters are reportable. Audit Adiustments During the course of any audit, an auditor may propose adjustments to financial statement amounts. Management evaluates our proposals and records those adjustments which, in its judgment, are required to prevent the financial statements from being materially misstated. Some adjustments proposed were not recorded because their aggregate effect is not currently material; however, they involve areas in which adjustments in the future could be material, individually or in the aggregate. Areas in which adjustments were proposed include: Proposed Audit Adjustments Recorded Adjustments of allowance for pledges • Deferred revenue • Record depreciation expense for books • Record year end accounts payable • 24 -3- Proposed Audit Adjustments Not Recorded • Effect of unrecorded Library material Attached is a summary of uncorrected misstatements we aggregated during the current engagement and pertaining to the latest period presented that were determined by management to be immaterial, both individually and in the aggregate, to the financial statements as a whole. Auditor's Judgments About the Quality of the Entity's Accounting Princinles During the course of the audit, we made the following observations regarding the Library's application of accounting principles: No matters are reportable. Difficulties Encountered in Performing the Audit Our audit requires cooperative effort between management and the audit team. During our audit, we found significant difficulties in working effectively on the following matters: No matters are reportable. Other Material Written Communications • Listed below are other material written communications between management and us related to the audit: • Management representation letter (attached) INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements of Fayetteville Public Library as of and for the year ended December 31 , 2008, in accordance with auditing standards generally accepted in the United States of America, we considered the Library's internal control over financial reporting (internal control) as a basis for designing our auditing procedures 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 Library's internal control. Accordingly, we do not express an opinion on the effectiveness of the Library's internal control. As such, our consideration of internal controls would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. A control deficiency 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 misstatements of the Library's financial statements on a timely basis. A control deficiency in design exists when a control necessary to meet a control objective is missing or an existing • control is not properly designed so that, even if the control operates as designed, a control objective is not always met. A control deficiency in operation exists when a properly designed 25 4 control does not operate as designed or when the person performing the control does not possess • the necessary authority or qualifications to perform the control effectively. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Library's ability to initiate, authorize, record, process or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Library's financial statements that is more than inconsequential will not be prevented or detected by the Library's internal controls. A material weakness is a significant deficiency, or a combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the Library' s financial statements will not be prevented or detected by the Library's internal controls. We observed the following matters that we consider to be control deficiencies, significant deficiencies or material weaknesses. Previously we made observations as a result of our 2007 audit engagement in a letter dated May 6, 2008. Material Weaknesses No matters are reportable. Sknificant Deficiencies No matters are reportable. • Other Control Deficiencies Segregation of Duties Management is responsible for establishing and maintaining effective internal controls over financial reporting. Duties in various transaction cycles are not adequately segregated to safeguard the Library's assets as typical in entities with limited personnel. Following is a summary of various incompatible duties identified: Payroll transaction Cycle The Director of Administration can add an employee to payroll master file; make a computer entry to generate payroll payments; edit payroll data after initial input; sign checks or submit an electronic payment. She has the ability to perform virtually all the recoding functions. Additionally, she has the responsibility to reconcile bank balances to the general ledger, employee payroll records to the control account, payroll reports prepared by service organizations, payroll tax liabilities and payroll accruals to payroll reports ect. Cash Receipts Transaction Cycle • 26 -5- • The Director of Administration has the ability to approve a credit memo or billing adjustment, add customers to the master file; change master files affecting billings and credit memos; prepare cash receipts journal; make a computer entry to credit customer accounts for payments received; make to accounts receivable and cash general ledger accounts and record bad debt write-offs. Actually, she has the responsibility to reconcile the cash receipts journal to bank deposit records and bank balances to general ledger. Cash Disbursements Transaction Cycle The Director of Administration has the ability to approve invoices for payment; access signed checks issued to vendors; mail or hand deliver checks; make a computer entry to generate payment and authorize a payment by check or EFT. She has the ability to: record accounts payable, issued checks and EFTS; change computer entries for accounts payable entries, checks paid and EFTs; change computer master files affecting accounts payable vendors and EFTS; make journal entries to adjust expense and cash general ledger, and account payable general ledger account. Additionally, she has the responsibility to reconcile bank balances and accounts payable to general ledger. This communication is intended solely for the information and use of management and Board of Trustees and is not intended to be and should not be used by anyone other than these specified parties. KL)April 10, 2009 • 27 0 FAYETTEVILLE PUBLIC LIBRARY Memo TO: Board of Trustees, Fayetteville Public Library Froem Louise Schaper, Executive Director and Shawna Thorup, Director of Operations Datm August 17, 2009 Ree . Policy Revisions Background Three policies need revision in order to offer new services and improve operations. These revisions were identified in the course of routine operations. The proposed changes were developed by mangers with staff input and have been reviewed at staff meetings. Analysis • Policy FG: Grant Review • o Add provisions for grant administration, oversight and reporting, which are absent from policy. o Change name to reflect broadened scope of policy. • Policy JF: 2009 Fee Schedule o Add fees for new services. • Fan cards • Bike locks (late fee) • Laptops for two week check out o Reorganize for easier use and reading. o Clarify some language. • Policy KG: Computer Resources and Internet Access o Include FPL laptops. o Garify expectation that patrons will use their own, and only their own, library card to access computer resources. o Codify limit on visitor's passes to one per person per day. Recommendation Adopt the revisions to policies FG, JF and KG to improve library operations. • 1 28 Code KG Date Approved 1123/98 Date Revised 7/16101 ; 5/19103; 1214103; 6121104; 8116/04; 218108 (D); 12115108: 6115/09 Policy: Computer Resources and Internet Access The Fayetteville Public Library's mission is to strengthen our community and empower our citizens with free and public access to knowledge. In accord with its commitment and continued efforts to provide access to informational, educational, cultural, and recreational resources and services for the community, the Fayetteville Public Library ("FPL") makes available computer resources to patrons. In providing access to computer resources, the FPL supports the principles expressed in the American Library Association's Library Bill of Rights, Freedom to Read, and Freedom to View statements, and adheres to relevant provisions of federal and state law. All persons using the FPL's computer lab-Gr, workstations or laptops ("users") must have a valid FPL library card in good standing or a visitor's pass. These users and users of the FPL wireless network do hereby agree to adhere to the following conductcode: 1 Users will access FPL computer resources with their own library card or quest pass only. Using another person's library card or quest pass is not permitted. 4,2. Users are responsible for any damage caused to computer equipment/hardware and/or software. 13. Users will respect and abide by copyright laws and licensing agreements. 3A. Users will not make any attempt to gain unauthorized access to restricted files or networks, or to damage or modify computer equipment or software. 4.5. Users will comply with any time limitations on computer access/usage implemented by FPL staff. 5=6. Users will respect the privacy of others and refrain from attempting to view or read materials being used/accessed by others. &L Users must save data only to removable storage devices. Data may not be saved to library hard drives. 798. Users must establish a print payment account in order to print from computers. Refunds will not be given on account balances. 8:9. Minors are only permitted to access filtered Intemet-stations. &10. Users age 18 and older may request the use of unfiltered Internet for research purposes. 40.11 . Unsupervised users under age 12 may access workstations in the Children's Library only. 44.12. Users under age 12 must be accompanied by an adult when accessing computers in areas of the library beyond the Children's Library. 42,13. Only users age 12 and under may access computers in the KidTech area of the Children's Library. 43.14. Only users ages 12-18 may access computers in the Young Adult area. 44.15. FPL is not responsible for damage or loss caused by viruses. 45.16. Some workstations have dedicated functions and use may be restricted to those functions. All others may be asked to yield the workstation. a. Assistive technology computers are intended for the use of persons whose physical needs require these functions. b. Workstations with dedicated microfilm equipment are intended for the use of the microfilm collection. C. "Research CGomputers" are intended for mediated staff/customer searching and assistance. 4&.17. Users must wear headphones or earbuds for any programs requiring sound and keep the volume at a level that does not disturb other users. Headphones and earbuds may be purchased at service desks. 47,18. Users are not permitted to engage in illegal activity; access illegal materials; access materials resulting, or which may result, in the disruption of library services (including the display of graphics either illegal or obscene according to local community standards); or allow the access by minors to "materials harmful to minors," as defined by law. 19. Users will terminate their computer session and leave the computer terminal area upon request by FPL staff. 4&20. Users may have Internet and/or library privileges suspended or revoked for failing to comply with library policies and/or staff decisions. of library computers, including checkout of FPL laptops for in-library use is on a first come, first serve basis. Reservations are not available. There is a two-hour time limit for the total amount of computer access per day. Library staff may provide assistance to users of computer resources to the extent time and customer demand allows. 29 Visitors who do not have a FPL card may obtain a visitor's pass at the Reference Desk. A valid ID, e.g. a driver's license may be requested. A visitor's pass is intended for customers 18 years or older who are traveling through the area and who do not use the Fayetteville Public Library routinely and is valid for up to 60 minutes of computer access per day. One pass per person per day. Use of computer resources, including the Internet, requires a responsibility of the user to evaluate the quality of informatioO accessed. Although computers allow access to a broad array of excellent information, computers may also access information that can be inaccurate, outdated, inappropriate, offensive, andtor illegal. The availability of information and materials does not constitute endorsement of the content by the FPL. Access to, use of, or dissemination of information through the FPL's computer resources is the responsibility of the user. • • 30