The public library’s board of trustees will meet Monday to discuss the results of an auditor’s report that questioned its financial management practices.
By:Matthew Armstrong
The public library’s board of trustees will meet Monday to discuss the results of an auditor’s report that questioned its financial management practices.
The report, conducted by Ernst & Young LLP for the township, found that the library is not tracking its revenues and expenditures in accordance with state statues, “does not prepare a budget that captures all of the library’s financial operations in an understandable manner” and that discrepancies exist in the library’s bank statements.
The library would not comment upon the report until the trustee meets today (Thursday). The meeting is scheduled for 7:30 p.m. at the library. Monday’s meeting also is scheduled for 7:30 p.m. at the library.
The report was commissioned by the township after continued questions regarding the financial management of the library.
“The public is receiving a million and a half worth of service, for $2 million,” said Councilman Ted Van Hessen.
The report also found that annual reports filed with the municipality differ from annual report prepared for public viewing. The latter report lists only appropriations and not a full accounting of the year’s financial activities.
The report also found that the library has no set accounting procedures for recording and regulating the expenditure of grant money. In 1999, the library received a private grant for a specific expenditure. However, the merchandise was charged against money received from the township, rather than from the grant source. The report did not list the expenditure.
“This is an alarming situation,” said David Schaefer, a former member of the Township Committee, at Tuesday’s council meeting. “I think it’s a disgrace.”
The library is governed by a seven-member board of trustees. Each is appointed by the mayor for a five-year term. The board includes a president, vice president, treasurer and secretary and also includes the mayor and a representative of the Board of Education. The two serve as liaisons for their respective governing bodies.
By state law, libraries are funded in part by municipalities, but are autonomous organizations.
State law requires the township to give the library money based on a percentage of the tax base. That amounts to roughly $1 million for the current year. For the 2000 budget, the township gave the library $1.88 million.
The report suggested that the library hire a fiscal director to maintain the general ledger and develop and monitor the budget. In addition, each department head of the library should take a course in accounting, and that the library needs to prepare a budget that includes all of its financial operations in an understandable manner.
Susan Edelman, president of the Friends of the Library, said she has the utmost faith in Library Director Lorraine Jackson, and that the library budget has grown as the township has grown.
“It has been Lorraine’s vision that has made the library one of the best in the state,” said Ms. Edelman. “Our township has grown by leaps and bounds in the past few years and the library has just tried to keep up with the demand of services.”
Ms. Edelman also said that attacks on the library are unfair and counter-productive.
“It seemed very inappropriate to have a public meeting to discuss the library and this report without informing the library,” said Ms. Edelman. “I really think that people need to sit down and talk about things instead of attacking the library.
Ms. Jackson said she will wait to meet with the board to discuss the findings of the audit and how the library will respond before commenting.
“We were really blind-sided by the report,” said Ms. Jackson Wednesday. “There were a number of things that were said in that report that were inaccurate.”
Ms. Jackson would not elaborate on the inaccuracies of the report.