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Home My WebLink About2012-04-16 - Agendas - Finalt'AYETTEVILLE PUBLIC LIBRARY Suzanne Clark, President Elizabeth Jordan, Vice President Mayon Rice, Treasurer We inspire imagination and foster learning. Board of Trustees April 16, 2012 4 pm AGENDA Regular Meeting Ann Henry Board Room Kim Agee, Secretary Brenda Boudreaux I. Call to order 11. Swearing in of new board members — Judge Rudy Moore III. Special presentation to retiring board members IV. Minutes A. Approval of minutes 1. February 27, 2012 regular meeting — page 2 B. Signed minutes 1. December 19, 2011 regular meeting — page 3 V. Reports A. Management reports 1. Key upcoming events — page 4 2. February -March strategic plan progress — page 5-6 3. February 2012 performance measures — page 7 4. March 2012 performance measures — page 8 B. Financial reports 1. February 2012 budget comparison — page 9 2. February 2012 Profit & Loss — 10-11 3. March 2012 Budget Comparison — page 12 4. March 2012 Profit and Loss — page 13-14 VI. New business A. Memo: budget adjustments due to grants received — page 15 B. NEH update — page 16-17 C. Gala budget — page 18 D. Staff raises — page 19-21 E. Audit Fayetteville Public Library — page 22-49 F. Audit Fayetteville Public Library Foundation — page 50-64 G. Open positions update H. Appointment of a nominating committee VII. Adjournment Attachments FPL press Dan Ferritor Susan Graham Fayetteville PolaIrc I !bra,. Board of TrusteeS Meeling Minutes Board Members preaont Agre, Ili -ewer, (cult°, M Malone, and M nice Staff present Johnson, L Greenwood, I. The Board d Wustees meetmg to order at a prn by M. Itico II. Minutes A. Approval of imnutes, D. Ferritor moved to approve all the minutes at one time; K. Agee seconded. All voted aye. O. Ferritor moved to approve ale mlnutes. I.. Brewer seconded. All voted aye. III. Reports A. Management Reports 1. Key up,onling events: C.Spaulding distrEbuzetl .0,5 0, 0, .W,WWWW I,,,,You,h magaZine. 0:her youth events include Read across America, Trike Theatre, MrC,Iferty Irish Dancers, a spring break mavie reStival, Newbery award-winning authOr Clare VandcrpOol and 1,Ce Con,' BOO, bay W. FitzgibbOn concluding in April with programs on researching government documents, a presentation by CrysLal tkidges about rare books, and authors Nancy Dane, and Gril Stockley. KUAF is hosting a reception David Johnson on March 27.. 2. D. Ferritor moved to generously and happdy welcome the new ED to ths meeting - mtenoled to be the first of many, many, many, many morel K. Agee seconded. All enthusiastically voted aye. 3. Strategic plan progress, All objectives for the previous year have been comP,e,ed- particul, - are up This incr,a5e du, partly to the d,crea,e in fines on OVDs ,nd g,e.,r turnover 5. January 20. p,rformanc, measures.' no questions or discussron. B. Financial Reports 1. December 2011 bud,et comparison: no puestIons or discussion. 2. January .- December 2011profit & loss: no questions or discussion. 3. January 2012 budget comparison: no questions or discussion. 4. January 2012 proftt and loss: no questions or discussion. IV. Old Business A. Update on electrOnic reSource s.listics,resource statistiCs have shown a deWeWe due tO glitch with Novelist when ryoveli,,,nd break IL out as s.epar,Le Ime in A. Memo: Bud,et adjustments from 2011to 2012: M. Rice moved to approve the staff recommendallon; L. Brewer seconded. All voted aye. B. Memo: Purchases with library credit cards: Bice moved to approve the staff reconmendaVon. Ferritor seconded. All voted aye. C. Change to policy I.0 - Rice moved to approve staff recommendation with the caveat that stall mall a "tracked changes" version for their review: M. Malone seconded. All voted aye. Future policy changes will be presented to the board in the "crocked change, format. O. 2011 Survey Week Review. The scale Or the graph, eve, though it shows,. is really 1.10 PL. rated higher tiwn 9.0% all c4t,gwrW, NEW Gala, Deadline for NEI -I Grant is July 31 with 5240,000 left to raw,omamannas agreed la narrate W., ogream gdla premiere for SO0 will be held riday, October 19, 2012 Johnson noted be is in discussion with KUAF about mounting their tower, unobtrusively, on FPL's buildir, Final plans would be presented to the board tor its consideration. D. Ferritor moved that the board consider the installation of the tower at a later date Including the possibility of a special meetIng, if necessary; M. Rice seconded. All voted AYE. G. D. Johnson thanked D. Ferritor for involving Skip Rotherlord to the initiation of cooperative efforts between FP, the Clinton School in little Rock, and the Siane °law Centwr at the University. of Ark,nsas VI. Adjournment. M. RiCe MOvedta adjOurn, L. Brewer Zeconded,1 vOted AYE. M,eting JdjOurned at n 54 pm. Fayetteville Public Libr,ry Bo., of Trustee, Regular Meeting 1,,,m1,er 2011, ,Iprn Minutes Board MeMLIer.5 present I, Agce, L Brewer. S. Clark, D. Ferritor, lOrdan, Molone,nd Rif, SW( prment' I Greenwood, t SpeOr, and ti Daniel Othr.rs. present Joel Vasil of Me IONA flmes. A. Approval of minutes, D. rerritor moved to approve minutes of 101711,K. Agee seconded. voted aye. Repo, A. Mana,ement Reports 1. 2011accomplisirments: t. Greenwood noted the Eist was submitted to Mayor Jordan. SRC recorded the highest attendance ever. Key upcoming events: 1..Speer noted continuing partnOr,hips, the he,innir, or the Civil W., - series, "Let's Talk About It" and an upcoming appearonce by Kim Ro5enstock. 0,tober.rovernIxtr strat,gic pro,ress: L. Gre.wo. re,orted 'food for fees" brought over 2000 pound, of rood for CEO. Pet food donations for riDn(peS ,rary exceed 1000 pounds. stall donates small gifts to re.sidmIs at City Hospital. 4. Update on 2011objectives: Most objectives hove been accomplished. 5. October/November 2011 performance measures: Circulation is.. 2.0% ahead of last year's. Staff will check on below-averape eFPL and report at the next board meeting. C. Financial Reports 1. NI. RICO moved extend contract with DK, scheduled to expire on 12/31/11, for an additiOnal months with au option for .6 monMs. O. r.erritor seconded. After dlsoussion, Rice amended the motion to authorize extending the contract for months with the board to re...evaluate the need for addltional sew., at that time. E. Jordan seconded. All voted aye. 2. D. 01.0( moved to release the Ellen Shively bequest to the Foundation for management. K. Agee seconded. All voted aye. iv. Old Business A. Patron usage on the Wednesday before ihanks,o, is hi,h; staff recommends lily, not close earlier. B. Search Committee update: D. Ferritor eported the committee ,ecommended 5 candidates for further consideration by the Board: Damel Bill Johnsen. David Johnson, Barbar, O'H,r, and Steven llamas. V. New Business A. Memo: library materials budget roll forwardl M. Rive moved to approve the staff recommendation; Jordan seconded. All voted aye. B. Memo: 2012 Ilo,rd meeting schedule: M. nice moved to approve staff recommendation. K. Agee seconded. veled aye. Nat, MOetins. to be in Ann Henry 110,rd Room, conlrary to memo. C. Morro: Polity 11, Fees 2012: M. Rite num. to approve staff recommendation,. rerritor seconded. All voted aVe. O. Memo: rund tram.: D. rerritor moved to approve staff recommendation; IN. Rite seconded. All voted aye. Memo: 2012 budget. M. Rice moved to accept stall recommendation; I.. Brewer seconded. All voted aye. VI. Vxecutive Session, Rtce moved to enter executive session for the purpose of discuSsing the 5 candidates reoommended by the Search Committee; E. Jordan seconded. All voted AVE. Executive Session be,an at 4:45 pm. VII. M. Rice moved Co return to regular session; E. Jordan seconded. All voted AV, Regular sessiOn resumed at 6:10 pm. VIII. K. Agee move.° invite Daniel Gibbs, David Johnson and Steven Thomas to interview for rxecutIve Director. M. Ake seconded. All voted aye. Interviews planned for mid January and te. include the Boar, roundation, Mayor Jordan,. Friends of Fayetteville Public Library, staff, and publiC. IX. Adjournnlent, M. Rif e moved to adjourn; Brewer Seconded. All voted aye. Meeting adjourned at 6,20 pm . ,( Key Upcoming Eventsmid-April through lune, 2012 Author Visits: AR Festival of Writers presents Sinen Antoon, Randa Jarrar and Shahmush Parsipur. April 21 Civil War Arkansas, Solder and Civilian with Nancy Dane. April 28 Camp Nine with author Vivienne Schiffer. May 19 How to Thrive (Not lust Survive) Oaring Menopause with Dr. Eve Agee. May 20 Fl Country Where All Colors Ne Sacred and ))live with Geoff Oelsner: May 22 Summer Beetling Club: Stay Cool at the Fayetteville Public Library! Brochure to be distributed at the boars' meeting Youth Services Children Story times- 6 days per week. Afferschool Workshops: April 19 (Art), April 26 (Mid-America Karate Kids) Dramatic Book Club with Trike Theatre April 18, April L3 Cipro de Mayo with Arkansalsa. May 5 Teens_ Treated Poetry where teens turn old magazines and books into fresh ad and poetry. April 10 Free Comic Book Day. May 5 Adult Services (Adult Mogr'arnm ng Book Talk 9 Night. May J, June 4 Book Talk: May 14, June 11 Crimes & Glues book club. April 12, May 10, June 14 Get Organized with Simple Spaces. April 1J (this workshop in January drew over 140 people) Green Your Life Series - Edible Sustainability: April 19 Morningstar Webinar How to create a portfolio that you don't have Io hahysih April 26 10x10 Countdown Conversations Dia.. with Kyle Keliams: April 29 Find It and Fund It, May 8 Theatregquared Artists' Forum. 2012 Arkansas New Play Fest. May 13 Get Your Geek On: May 16-23 Meet the Funders Panel Discussion. June 13 Family Event 10x10 Walton Arts Center series - Artosphme Festival Orchestra: June 16 0 FAVEITEVILLE Strategic Plan Fregress Report February arch 2012 Purpose: We inspire imagination and foster learning. I.relevant progarris antl services that engage the community's curiosity, self-improvement,provide opportunities for and serve as the gateway the library y addressing die diverse arid ereslsd of ouur corm nunity. aPrograms Hostetl Mop,reception for David Job with KUAF. Presented An Evening with Tracy Kidder 1, attendedlectureand TO attended author reception. Presented playwright Kim Rosenstoch partnership d Partnered with Walton ArtsCenter on 10.0 CoumaownConversationaTAO, Art of Drum v. CoMinued 'Oohing Sense of Ore Amencan nvfl War programmIng with Washington County Historical Association /wing history program and author Grit with that Fayetteville Sound. Scree:. .11 or, NM documentary la partnership NI. Hosted Poetic Displays of winning author, where patrons and staff read love poem FPLs You Tube channel. Hosted Newbery Awamwmr�ak events,o area students attending ix Hos. a series of Spring events r children a. teens. x. Hos. Read Across America to celebrate Dr. Seuss's birthday, 250 attended. xi. Celebrated St. Patrick& McCafferty Irish Dancers; 350 attended. Completed the Spring Creative Writhe Workshop series for children and teens. H. a Civil War Sweetheart Ball in partnership with the Washington Co Historical Society. sees me northwest Aransas Regional ort show, displaying Mird. an ebmnghtul me lma,y. Coordinated Art Committee meeting to review submissions. PM since 2009) mi. Offered six-week ting workshop (class fun within hours of its announcement,. ma. Provided Face book for Fledglings computer mar Provided Find II, Fond It. Introduction to Finding Funders workshop for nonprofit gramseekers b. Services Completed inactive patron purge from database. rovidee f individual res: mh consultations. Received and mase available federal and Mate eax forms. c. Duality 1. Submitted report to Foundation Center: feedback listed FPL s one of the st a. ALA highlighted Mu Otwell reeri y several categories: Sma.I Protects -Rig empact, youth Spaces a. Technology Enabled. tl.Homework elp&(est Prep pages added to AMP, Teen & Children's WebPages, II. Collections: We will build and support collections that inspire the community with the resources they rped to explore topics of personal in rest ndcntlnue to learn throughout their lives. Sati Checked adult antl youth collections against a variety of notable antl awarded books fists & Inspire learningamagination 1. lue Line Investment Survey Access: We will builds it, thee addedinvirtual a pyswl read to alt in the communrty, reflecting the FRL welcoming, convening and destination culture. a. Bi. rowsability Adult 92's change to Adult Bio completed; Teen Amine DVDs ram. to media area. b. Outreach partnerslaps Preserved Brainfiue database demonstration to teachers at Owl Creek School Breadii. Reading Roadshow three mom m yof Muskogee, dPingPits ambers staff, a state senator, a. business nnirm to build a new libraryy an Attended Family Day, local el lead Sstart Centers. v. Semi,. Chamber of Commerce Book Drive for 2012. Met ith Clinton School of Public Policy and UA about partnership Id begin in Fall, 2013 cm Two staff member represented FPL at The Dig -In Festival e Virtuali. Created IaOsse Is far Owl Creek Maintained mail reader's advisory newsletters. Added numerous virtual bookshelves to the recommended reading librarye new web site. d P1. hysical Deployed 9lMaa with Adobe Creative Suite to the Computer Lab and lD laptops for patron checkout. IV. e and maintain a culture or excellence by supporting a.inspi ing our staff, boards, and volunteers_ Staff Attended1. Life Styles tunchean antl toured Crystal Budges- . Submitted reviews for L Express. in. Attended One Book, One Community meetings in partnership with the University of Arkansas. iv. IT staf ended Redhal v. Attend. ALA Mid -Winter, Public lobrary vi. Wrote reviews Association, LlbraryJournial a. Arkansas Librariesomputers in �r es Conferences. a nd articles for ed 8training opportunities Attended aye[Icv. Chamber of Commerce Education Committee meetings b B1. oards Current Friends memnestip. 318. c. Volunteers i. Reg teeRep, ending Hands prograrro trained 1 new volunteer. h. Secured volunteers for Oral History Protect, Across America, C. Vanderpool, a d T. Niddcr. Conductedamtrg session for kindergarten rAnewvolunteers fr Reading e arvaad conducting kindergartenrs V. Facility: Our consumer-friendly, mer- eadly,sustacility will be safe, accessible, clean a. supportthe recurrement, for Programs, servicesantl collections. a cooling unit in the server room a...Ms-free soap dispensers In bathrooms. Id Installed of four "Green Your Life" programs for caulk day. c. Safety/Sec.. 1. Inspected personal spaces lar safety a. fire hazards VI. Communication: We roue ongoing communication to.ncrease awareness of the ribrary and understanding of its value and cmpact en the communitY- Coordinated emergency preparedness press conference with city personnel, mayor and Sam's Club. b. Participated In OLLl lilm festrrai steering committee meetings. c. Presented to Mayor Jordan astag. d. Wrote and distrbutedP"Pres Clinton agrees nd ees to narrate documentary" press release. e. Met with Joel Waish, FIWA Times, for articles on badly in espublicTri kraries NEH gmnL f. Created Constant Contact ntation Legacy from Blues to ddyTracy Hayy UddTribute . to o r 39,000 Polars Created welcome letter and invitation from David to Tracy Kidder, e our 39,DDD Polaris users. VII.Funding: ingood stewardsgala date, ofthe public anag silentll pursue diverse, with ng dealership for archon donation. b. Received &G giant for Reading Roadshowiand submittediA&P grant for gala. a Submitted rm.,. eRate grant request for next funding year for high speed Internet and Vole servroes. FPL Performance Report: February 2012 " E - FPL Performance Report: March 2012 EEA 7,1 ' EHE EEE, :Pr.g -4, I E A A 1-'„„= ""' "'"' „. „. 12t . . „„, . s, . „„„. "." „us.. „,„ „„, „,„ „„, „,„. "'" „„,„ Fayetteville Public Library Profit & Loss February 2012 '716r7"'"71:'07:1r07 000 • Houipts 6015, Library Carcis 6060, Lost and Paid 1,616060, • 60006601,W aaal• Intoras,Oparat.11 "760nar0=10406lic 611660006 iole101600 • Stalo ROVO11.5 "NVZ7p2"' 51.• Gointput vraro M11.01 5115. Comp 6005 617'.71=r077rr'"' Total M.- Chiltlro. Program :Otr" re. SZOt:plias 5610 • 6006 noo- PrO006500,161 Total 6t. • UtIlltlas "ZZ:eTig:: 17 53 11:S7191 991 15 5no 55 803315 15 01,5 97 3 805 50 337114 79 Fayetteville Public Library Profit & Lo. February NV 20919907 Paid ,=.tio, 911424, 675'579" 818,4850094 T9,1E505554 '',70==" s=7,.""`' "Z" %',`," „.— „0. „.0 —0. ,0000 "0:r0: °0in . . :0., „. "'."" "''." '0= „.%, 12.333 23,14 ,n.447 L„,„ 1,000 3,02 19.., 30.a.V "3 '3" "'"' '— ‘=',':',7",""'"'"` „„„0 „0„ „0. '''" 397939T5'atnr5"" 9,559 3,917 9,578 90.3,7, 7.839 n8.89=99:89=99 3.3" '3" 5.33* """'"3 2559 583 1,156 96 519, 1,157 , 2,10 2,04C 1,1, 9.5333 9.957 5,523 20199 nons, „.3„ 13,i1„5 s9,66 „.„6.03s 985,95 1,580 16,998 9299, 3,099 88,849 29831ri 12.338938'5 ""."33 59, 9.9831 Tr',",n`0„00,, .0'00 '3.'2 .2°0 "0:!`,`, '."' '" "`"" ""' "."' . „. . ,.„„„ T0T, 's„ • '" — 1„„ .„ "."' "."'" ""' P,.„) I, ,2„ 36,9 21.„„ 28383 01,0 3ry 3110.1S, 25,COD 1,,r094 IPZ :1= 2= Fayetteville Public Library Profit & Los March 2012 0300 nee :8 Peas • Other Total .00 • P. 8. Fees Petal intosest 2,000 OS P90 3.sr8 To. Office Suppliss 51,00.79 =:197tan P.009.00 2.09.10 5.5 • PuZe .00.0 6a, u11,11,es 19 xos Ss Fayetteville Public Library Profit & Loss March 2012 rota, -arl1,-0 2.10.30 14,678 ,0 IIII PAvcrrevf�c.e Puncm LIBRARY Memo Tor Board of Trustees, Fayetteville Public homy Rmm. Damd Johnson, Executive Director Amfenf%Approprote Gram and Donation Funds Background 1 Procter A Garai. has made a design.. gM of $5.000 to be used to supped. ReaMng Roadshow g 2. The FPL staff requested matching grant from the Arkansas Ada Council in the amount of 5140 for the Brian Kin prop inDecember 2011_ It was awarded In March, 2012. Yetiloda Gmemawetmrdnmonml EducB nt, baz BA¢tl 5200 toasupplemanttne pwchase ofineterlWa fw the Cfimete Change Book Forum 4. The Roy Rom family has made a designated gift of 22010 purchase rowing becks. Recommendation Ainceplthe $5,000 gift from Procter& Gambleand apply to the youdt services programming budget 2. Amen the 5140 gin from the Arkansas Ana CCunail and appry mine ye, aemoas programming budget. 9 the $2G0 from the Arkansas Community Foundation, Greenlaw Environmental Ebueelion Endowment and apply to the library materials budget. 4. AccepltneM Roy Rom gin and apply to the lax, materials budget NEH Reconciliation Report to Foundation Board of Directors Prepared by Hope Bradberry The goal of this report is to clarify for the Foundation Board of Directors the current standing of NEH assets. Rebecca Riley, the auditor for the Foundation, and myself, spent a considerable amount of time reconciling these figures. These figures are based on a 12/31/2011 end date. Net Assets Reconciliation Gifts Certified to NEN Match Received from NEH Estimated Net Assets $1,508,036 $ 400 000 61,908,030 Expended Funds 2009 ($ 46,816) Expended Funds 2010 (6120,157) Expended Funds 2011 ($ 80,675) Total Expended Funds ($247,848) Investment gain since Inception (12/31/2011) 670021 Net Assets $1,730,400 Balance Sheet Reconciliation Investments NEB (Garrison Fund) $960,798 Accounts Receivable net 9543,486 Cash NEH $226 125 Net Assets $1,730,409 Please make note of the Cash NEN of 8220,125: For discussion: The board needs to make a motion to move this amount to the NEH endowment fund to reflect payments that have been made for the Sept. 2011 distribution and other payments from the BOF cash account where NEH designated funds were deposited and not transferred to the NEN endowment and were utilized to cover foundation expenses. Transfer to reflect 2011 disbursements to FPL: Childrens/Elderly restricted fund: $30,137 Unrestricted: $24,367 Total from disbursements: 954,504 Additional unrestricted needed to replenish NEH endowment: $171,621.00 Getting to $2,400,000 Corpus of NEH Garrison Account $890,777 Addition of Cash NEH $226.105 $1,116,902 Additional NEH funding Accounts Receivable (pledges due) Subtotal $200,000 $543 466 $1,860336 Addito0 of Expended Funds 0247,648 Defaulted pledges 949,300 Remaining to raise 5242,,f_14 52,400,000 Bridge funding expended Remaining bridge funding NEH Endowment remaining Subtotal (0247,648) (^.152 352) (0400,000) $2,000,000 Bridge Funding There has been much discussion on the bridge funding of $400,000 associated with the NEH Grant. I think a couple of points would be valuable for discussion. I think the Foundation Board should look at the bridge funding as how much should be made available to FPL based on how much has been has been raised. A schedule based on some type of pro -rata formula. Please see calculations below. Second, best practice dictates that specific projects should not be targeted by the Foundation Board for funding. Just as during the capital campaign. it was often recited at the Foundation meetings, "we aren't here to Eck out the carpeting", similarly today, It sn t the Foundation's role to choose the books on the shelves, movies In the racks, or programming at the library. That is best left to the librarians. Thus, for the bridge 10101in9 question, the Foundation could say - FPL, now that we have collected to date 101 $'s; this amount is available for NEH Bridge Funding. The library should create programming within the guidelines of the grant for the utilization of those funds. Calculation of Bridge Funding to dale: $400,000 represents 1/6th of the total goal 0002E00,000; Based on 0's collected: To dale: 91,116,902 has been collected. That would mean that as of 12/31/2012 0186,150 would be available for bridge funding. As of 12/31/2012, 0247,648 had been expended. Based on Net Assets (NEH certified & gifts from NEH, includes pledges): To date: $1,908,036; Dividing that by 6 means 0318,006 would be available. 55. E 3 S_ E m E C 2012 Salary Increase C O o 0 0 4 CllroJ v o >- 4- • 4- O 4- T C 0. (15 0 t N community. increase for all The "Details" 2 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Accountants' Report and Financial Statements December 31, 21111 BKD, CPAs & Advisors m Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas December 31, 2011 Contents Independent Accountants' Report on Financial Statements and Supplementary Information...._.._............................................... Management's Discussion and Analysis Financial Statements Governmental Fund Balance ee t n f Net Assets n ] n of Goven ental➢.md Revenues, Expenditures and Changes in dBalances/Statement of Activities........... — __ S Notes to Financial Statements 9 Required Supplementary Information Budget, Comparison Se,eMde_. .. Supplementary Information Coyenunental Fund Balance Sheet/Statement of Net Assets- Library Only 21 Statement of overate atal Fuld Revenues. Expenditures, and Changes in FundPl ca/Sate nu,l of Activities Litttery OnlY........ - --22 Combining Stat ,Fal Find Revenues. Expenditures en Changes Statement ., .... a ('I, , Fund 13 I ccs/SI f Activities ...... ........... ........23 BKD Independent Accountants' Report on Financial Statements and Supplementary Information Maid of bootees Fayetteville Public bilirary Fayetteville. Arkansas Yee have fled the accompanying1 Fayetteville Public. City of Fayetteville, Arkansasrnfanitd forthe omoed December 31,2 as list mponent unit fted in the table f co These limuicial e tial at ntlne mspmn lily of tt.e Library's nagemeOur tosp os sibiliry is to express an opinion on these. tlmnciel stateme is based on our audit. We ondneted our audit' ordain ting standards g erally accepted in the tel Slates of Atomic. Pros ands require that we plata end perromn the generally to obtain reasonable aseinance abom whet financial statements re free of to nudtincludes ring. on a n basin evidencesuppah gtleuand disclos tial st audit also includes assessing Me accounting principles used and significant estimates made by management, well as evaluating the overall financial statement prestmtation. We believe that our audit provides a reesonabde basis fol or opinion. In out Opilli011, the financial statements mthrred to above prem fairly. in PI material epees the financial position of Fayetteville Pub or Libs of December 3l. Jell, at angesria fine dal pas frthe }rem then girded in eon6nmitywith accounting pnneiples generally accepted in the Unrated States ofAnmeicn in Darrel o the financial at 1 the Library changed its hod of accounting As r 0 discussed accordance with cite andar6 Board Statement 110. 5, Fund Balance Repo,>mg nun Gover,nme tall /}pe. D f ation. Accounting principles generally accepted innited States of America regnio the accompanying. hwuagemen's discussion and analysts and budget, comparison schedule lined in the table of contents epmsented to supplement he basic financial statements. Such information, alt ongr net part of the basic financial statements. is required try the Governmental Accounting Standards Board wlho COIsidaa it essentialto pun of financial ninon re for placingthe basic financial rat au appropriate operaor historical co have applied cc rn limited procedures required mpplemenitary information n accordance with auditing standamis generally accepted into United States of America. which consisted of inquiries ofmanagemmrabout the methods of preparing the information and mmpanng the int'nnnmion for consistency with management's responses tor inquiries. ire basic financial statements and other knowledge we obuoied during our audit of the basic financial statements. anot express h opinionor pm any as rte imfom ora bet tel precedmu do not provide us with sufficient evidence to express an opinion or providers. assurance. Praxifv`. experienceBKO Hoard of Tnnsteec Hayeaeville Public Lihnny Mtge 2 Om audit was perlommil roe the purpose of forming an opin on the bnsic tine whola, nal Fuud lBalance Miner/Statement of Wei 2,5.5 - Library Only, Statement of Governmental Fund Rev [xpenndltn and Changes and Balances/Statementor Activities- Libny Only and the Combing Siatenennt o[Guoveuntal in Revenues, Expendturennd Granges in Fund/Halatce/Slaleinent of Activities listed in the table ofmnieuts ale pmsrnnnd 6clmr'poms of additional analysis and am nota required Iran or b81asio.1.1i Staten -IC.. SnnJn infonaatlon lies not been subjected to the auditing procedure, applied in the audit of the basic fimncini statements, and eccmdingly, we do not expinss 2111 opinion or plonk. any asanance on it. "FI%D, LUQ April 9, 2012 Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Management's Discussion and Analysis Year Ended December 31, 2011 Introduction Ks management of the Fayetteville Nike Library (he 7G9 '56ment'), we offereeders oftlte Government's financial ...li enls this nen-alive overview and analysis of tie Govnrunem's eel Wivities for Me year ended DeceirMa 31. 2011. It should be read in connmrnion with the accrnipanying financial statements or ilte Government. Financial Highlights Key financial highlights Cot 2011 die as follows: • Thea ao595) e exceeded its habiliti eofthe fiscal year by 331.590.595 Me misers).U cued netmay bee el the Libraryongoing obligati and 53,425,408 isavailablen meet the Fayetteville Public Library Foundation (Me *Foundation") obligations. The Library's total netincreased by 9302,9'10 or 1%. 31he Foundations not assets ? increased by 5637,503 or As orIhe close of the cnnnn year, the Government's g°vemmental hind tenoned ending hind balances of S3.672,0 atlnbutable to Ilse Lilian, and 924242] attributable to its Foundation, increasean of 3542,508 of 864.Mr °uudadon and an on increase 91)09669,9 5%Mr MC T Lmryn comparison with the prior yea_ At the end of the coment fiscal year, unassigned Mild balance ('cit the governmental hind was $2103,165, or 163% of total govenuttental Maul expenditures. The Library portion of this amount excluding its Foundation was 53,621,757, of hn/ of Library governmental tal thud expendimms. Overview of Financial Statements This annual repon cons,.of three iiartsi wonagewen in mnA Is (Iltis on), tie basicfinonclnl .tements and mg Hired supplemen,,hl/on on (13udgwnry19,'I6 Schedule). The basic financial 6,6,661116679919(6(19,6669696966946two dinwent vrexs uC Me Govennnea_ The Govennnenfs basic financial statnnnm not only include the Library bet also its blended component unit, Fayetteville Public Library Foundation (the "Foundation -7 The Foundation, although a legal separate entity,is. int substance, Pad°Lille Government's opelarions since Its pinta, function ie to raise funds for the benefit °[the Library. 'Phe effect °Lure transactions between the Library and Foundation is eliminated in die basic financial statements. Thegovernmental" nd colmtl ofthe Fmancial statement, includes infonnatien onum Government's Gene, al Magi(wlrich Includes Me Libra, and Foundation) under Me modilFul s of accounting using the unreal financial rnsource method. ]be governnental fur used I° account for essentially the setae noniron repon ed as in the gov rnmenl wide financial rs(sta tofu ander color on pages nada. �eslec vely). I net the gov -' de fins et fiord fins cialstatementsfow Inflow and outflows of expendable aswell as on balances of expendable on available al flue end of Oa fiscal year! Such infinusfion may benme(hl in evaluating the Oevernnenps neardenn financing requirements. The ad'matment column of the financial xmmnreuns repeenems adjustment, necessary to convert the governmental vndfinacialst tothe gov -wide financial st the gill neral method of accounting statements ndjnsumus columns provide reconciliations to facilitate die camper son betweenthe neenfal horn and government -wide fina tial abatements. IMO un la onc sthpuAofinn mrd sr which are nn csigei to provide readers with u broad orermmew of the Government., finances m a manna similar to aptivafe-sector business_ '1'hv t rifted asses,prn in[onncall of the Gov and liabilities, with the diffeonee ba nOm two reps rte 111.1112./11011 s. Over net assets may serve wafil indicator of whether the financial position of foe Govennmnt is improving or aemn,orating. he rlar er presentsinformation slowing how the assets changed during the ort fiscal yea myon asMcunderlying vent giving most do the mage occurs! regardless of Mc timing of related cash flows. Thus, se and expo fled in this natcnm mont for some items that will only result in cash flows in fimne fiscalper odu Because the focus of the governmental fund is nammwm that that of the govemmeut-wide linanaal statements, it is nsefill to compare the Infonmfion presented far the governmental hod with similar information presented for the government -wide financial statements. Ily doing so, readers may better understand the long -tum impact of the Government's nemsteim financing dmisions. The financial statements also include notes dim explain some of the infomwfion in the financial statements and Prov ace followed by section of legitimist supplementary information that timber explains andexnppora the information in Mc financial Government -Wide Financial Analysis noted ember, net assets may servo over time os v urxaNl indirntor of govumuenf'a financial In the case of the Government, assets exceeded liahilihes by 531 (99.595 at the close of the most recent fiscal year. A portion of the govemtnar's net assets( %) may be used to mac the goveinmevn's onngofnug obligations to citizens and cod.,, Statements oi Net AssetS Library Foundation 2011 2011 2010 2011 soM 2010 .0.191 3,8,07 55,483 53.1.4. .4674 MI. 2.1 +.10 b 24054 19, 5 '1 42, fi 699 91 1 30 )in gdiligonal portion or the net assets (62%) reflect its invegimeni in capitol assets (e.g.. imgl, andrundiore and eigiiinneig). Goveggneor uses these capital assets to (goggle services to citizen,: oon(eggently dgise assels are uot available for future spending. The remaiiiiiig balance or net assets (12%) (erg milts resources thai are subject to oxiernal restrictions oft how they logy de used. Colibined unrestricted net assets and total net as,eis increased dge gild (e(pectively ginee revenues exe(edeil expeo(es in 201 I by 5,45.47S. In 2011. evenucs increase., S288.865 or piimarily due to: • gia increa(c in ide contributions to Will the and the. Foundation. Financial Analysis of the Governmental Fund As motel earlier, the focus of Me Gov 's govenonental fund is to movt inflows,nemstenn outflows and balances of expendab8utlu infognation useful in assessing. the l's fins s. In hart m nedlrl balance serveserveas a e useful mmmeof a Gov nmrent s mat ruomrces available al Me end °lithe fixed year. As of the end of Mc nmmnt fiscal year, the governmental limit reported ending fund balances of £3,672,330 end 57,242.427 for the hilitary and Foundation, 'espectively. Approximately, 99°'0 and 48% of Mese signed fund balances,which a availablefor stimuli, at lime brmy's and Foundation's discretion, disci respectively. 'Ile ainder of the hind balances have mendingcoman is placer mithe purpose for which resources esrmbe used. The fund balances of Me govenmentol fund changed by $732,769 (a $190.261 end a 5542$Ok Lib] and Foundation. respectively) cluing me current naval year. Key fact, in this increase are in aimed comributious to the Libra, and Found:dim. Capital Ascots At the end of 2011.111, Goveminent 519,534.776 Invested m capital net of accumulated deprecimion, as detailed in Note Mo lie 111, 1116111 statements. Melees. of $174,412. The is increase minority due to depreciation expense of capital assets in tlmc aiming of 5872.982. net of capital asset additions or$1 049,806. Budgetary Highlights Differences between the final budget and the actual results On 20 can be briefly sg unnlzed as follows_ names were smiler budget by lass than 1% Actual 2111101111,M,2111101111,M,tsmo GOIIS.ctn With the Midget. • Total expenditures cows over budget by less than 2.M. Actual amounts arc consistent with the budget. • (Metall change in hand balance was Alei. or $84,3S8 less than budgeted. a1y ods s)asnp tea rveg Contacting the Government's Financial Management This financial report is designed to provide a general overview of the Govmmnenfs linen orwith an in them. Questionsling any of the information provided in requests for additotnal financial in%nnamonn should be mailed m the following :giftless Office of line Manager of Finacial Sevlw Fayetteville Public Library 01 W. Mountain Fayetteville. Alt 72701 for all v�mr Fayetteville Public Library A Component Unit of the City of Fayetteville, Arkansas Governmental Fund Balance Sheet/statement of Net Assets December 31, 2011 Liabilities Fund Balances/Net Assets Sea Notes to Finaacial 0,S0.1021 57.1.4R3 2.144.776 (1,2,1021 294,674 <44 6762 <1 750 6602 06,161.1 2671