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CUTPL Board Minutes for December 2008

December 16th Board Meeting

Date: December 16, 2008

Time: 7:09 p.m.

Location: Library Conference Room

Attendance: Al Nyby, Ron Cole, Jim Hahn, Melanie Robertson, Rita Lawson, Peg Schuldt, Carol Saft, and Director, Colleen McCarty.

Quorum was established with all board members present.

Secretary’s Report: The secretary asked for approval of the November 2008 Executive Session and Public Board meeting minutes. Approved.

Treasurer’s Report: The Financial report still does not reflect the correct balances for the Operating Fund and the LIRF account. These figures need to be correct by year’s end (2008). There was a question on the charge of $4,384.00 to FCS Group for cabinets in the Children’s library. Colleen will contact Troyer Group to clarify if this should have been part of the original contract or was this extra dollars spent. She will report on the findings at the January meeting.

The Ad Hoc Finance/Budget committee continues to review the expenditures and contracts to look for opportunities to realize cost savings. During the review it was discovered that there were times that sales taxes on a number of purchases and routine expenditures (utility bills) were paid. The committee has submitted proper applications to request refund of the sales tax paid and has been granted exempt status for all future utility expenses. The total refund request, if approved, could total as much as $5,500.

The Umbaugh bill has been paid from the Rainy Day Fund because this is an unusual item that does not relate to the usual pattern of expenditures from the Professional Services Account. The report was approved under the conditions that the correct figures be adjusted for Operating Fund and LIRF.

Paige Gregory from Umbaugh and Associates presented her summary of services performed, findings and recommendations. She first thanked Jim Faulkner for being organized making the work to be done easier to do. The report is outlined as followed:

Summary of Services Performed, Findings and Recommendations

1) Bank Reconciliations

a. Services Provided

  1. Reconciled LIRF bank account to ledger for the months of October 2006 through August 2008
  2. Reconciled main bank account to ledger for the months of October 2006 through August 2008
  3. Developed adjusting entries to reconcile banks to ledger
  4. Assisted bookkeeper with entering each adjusting entry in the accounting system
  5. Provided work papers to bookkeeper supporting adjusting entries
  6. Trained bookkeeper on bank reconciliation process using September bank statement
  7. Worked with Library to close LIRF fund and transfer monies to Operating Fund
  8. Communicated with CompuTrain representative on issues regarding accounting entries in software

b. Findings

  1. Bank statements nor reconciled to the ledger on a monthly basis
  2. Transfers between LIRF and Operating Fund not properly reported
  3. Payments made from the Operating Funds were recorded as LIRF disbursements
  4. Some receipts were not posted to the ledger
  5. Some payroll was not posted to the ledger
  6. Some bank charges not posted to the ledger
  7. No formal purchasing procedure

c. Recommendations

  1. Ensure that all accounting activity is properly posted to the ledger.
  2. Reconcile all accounting activity with bank activity on a monthly basis.
  3. Combine the LIRF bank account and the main bank account. This will eliminate the need for separate checks for LIRF expenses and physical transfers of cash from one bank account to another.
  4. Seek comprehensive training from CompuTrain on how to use the accounting system. Ron Griffin of CompuTrain is willing to train the bookkeeper and assist on any future needs.
  5. Utilize resources available from the State Board of Accounts – "Accounting and Uniform Compliance Guidelines Manual for Libraries."
  6. Post bank interest in month earned
  7. Develop a purchasing policy to:
    1. Regulate purchases
    2. Ensure that funding/appropriations are available prior to the purchase
    3. Utilize Purchase Orders
      1. Provides fiscal officer with the means to encumber (obligate) and track appropriations
      2. Provides governing board and other officials with timely and accurate accounting information and monitoring of the accounting system
    4. Assure compliance to public purchasing statutes

II. Developed a cash flow analysis for calendar years 2008 through 2010 and prepared a special purpose report summarizing the analysis. This report can be viewed at the director’s office at Culver Union Township Public Library.

The Cash Flow Analysis for Calendar Years 2008-2010 (full copy is available in the director’s office at the Culver Union Township Public Library) showed forecasted cash flows for 2008, 2009, and 2010. The purpose of the cash flows included in the presentation was to allow management an opportunity to evaluate the forecasted cash flows of the Library and, based on this information, make informed decisions about budgets, revenue goals, and additional resources required to fund the proposed 2009 budget and future budgets. The "Operating Balance Percentage" measures financial health of libraries and needs to be between 15% and 50% or between two months and six months of expenses set aside in cash reserves. This percentage is computed by taking the ending cash in a given fund divided by the operating expenses of that fund. Overall, the Library is expecting to have an operating balance of approximately 45% at the end of 2008. At the time of the report, the operating balance percentage was 44.9%

Circuit Breaker Credits reduce property tax distributions and affect all taxing units within a taxing district. This report prepared by Umbaugh dated September 3, 2008 projects property tax losses due to circuit breaker credits for the Culver Union Township Public Library will be $0 in 2009 and $0 for 2010. Actual property tax losses incurred by the Library due to circuit breaker credits may vary and the variance could be material. The bottom line is to keep expenses to the monies we received and try and reduce expenditures by $120,000 to be able to have a cash flow of money every January to pay out expenses until the library receives taxes in June.

The suggestion was made to also rewrite the purchasing policy when the Ad Hoc committee meets on the revision of the policy handbook for the Culver Union Township Public Library. The members, Melanie Robertson, Colleen McCarty and Carol Saft, are currently working on policies for credit card use and cell phone use by employees of the library.

The suggestion was made to also rewrite the purchasing policy when the Ad Hoc committee meets on the revision of the policy handbook for the Culver Union Township Public Library. The members, Melanie Robertson, Colleen McCarty and Carol Saft, are currently working on policies for credit card use and cell phone use by employees of the library.

Director’s Report: Circulation report was distributed by the director. Colleen will develop a year end report to demonstrate the checkouts by the different genres.

Food for fines has brought in a total of 606 food items for the Culver food pantry.

Six hundred dollars ($600) was received from the Friends of the Library to purchase new books. The Friends of the Library will also be holding a luncheon for all library staff on December 19th which is greatly appreciated by all. Also, an anonymous donor has given the Library a 12 foot Christmas tree which is currently being displayed in the library lobby.

E-rate reimbursement is currently at 70% for phone lines both long distance and local and lines for the computer. This rate is based on the free and reduced lunches in the school system. Since the free and reduced rates have increased in the school district, there is a possibility that the rate may be raised to 80% when the new rates come out in January 2009.

Bad weather closings will coincide with the closing of the Culver Community School District.

New Business: Jeff Kinney from the Culver Citizen requested a drop box for articles the Culver Citizen since the current offices will be closing. Culver Coffee Company has agreed to one site and the Citizen would like the library to be another. Jeff will be responsible for coming by and checking the box for any articles. Motion was made to accept and was approved.

Polly Thompson Wolf addressed the board on a proposed grant for the "Big Read" program. "The Big Read is an initiative of the National Endowment for the Arts in partnership with the Institute of Museum and Library Services. This program is designed to revitalize the role of literature in American culture and bring the transformative power of literature into the lives of its citizens" according to the guidelines published by the National Endowment for the Arts. Polly has chosen to identify "The Bridge of San Luis Rey and Our Town" by Thornton Wilder as the selection for our community. Colleen contacted the Thornton Wilder Society in New Jersey and received an e-mail back for the director of the society showing great interest in coming to our community to assist the library with this project. The committee of community members and facilitated by Polly will be meeting each Monday during the month of January to start gathering ideas on how to raise the matching fund. There was discussion by the board and the motion was approved to give the go ahead to Polly to pursue the grant.

Holiday closings for the 2009 year were approved as follows:

New Year’sThursday, January 1, 2009
President’s DayMonday, February 16, 2009
Memorial DayMonday, May 25, 2009
Independence DaySaturday, July 4, 2009
Labor DayMonday, September 7, 2009
ThanksgivingThursday, November 26, 2009
Christmas EveThursday, December 24, 2009
Christmas DayFriday, December 25, 2009

New Year’s Eve the library will be closing early and those hours will be posted in advance of this date.

Holiday pay will be addressed at the Ad Hoc meeting for the policy revisions.

Board meetings will be held the third (3rd) Tuesday of each month at 7:00 p.m. in the library conference room unless other wise posted. Those dates will be:

A motion was made to set a minimum valuation of Capital Assets for our inventory. Approved

Public Comments: There is a concern of art prints that have been given away in the past years and if the inventory of the art prints is correct. Colleen will contact Bob Nowak who assisted in the valuation of the prints in past years to assist in establishing which prints are missing. An inventory was recorded on a disk and was stored on a computer that was located in the old children’s area. Findings will be reported on at the January meeting.

With no further business to conduct, motion was made to adjourn. Meeting was adjourned at 8:45 p.m.

Respectfully submitted,

Carol Saft


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