Skip to Content

Login   Subscribe   Site Index   Contact Us   Google Translate™

NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Pember Library and Museum – Board Oversight of Financial Activities (2013M-285)


Released: January 3, 2014 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to determine if Library/Museum officials provided adequate oversight of the Library/Museum’s financial activities for the period June 1, 2011 through April 26, 2013.

Background

The Pember Library and Museum is located in the Village of Granville. The Library/Museum is governed by a nine-member Board. The Library/Museum’s funding for the 2011-12 fiscal year totaled $165,950.

Key Findings

The Board has taken steps to provide oversight of the Library/Museum’s financial activities. An accounting firm prepares the accounting records, and the Executive Director provides the Board with financial reports.

  • However, the Board did not adopt a budget for the fiscal years 2011-12 and 2012-13, as required by the by-laws, and did not monitor and comply with the stipulations in the Foundation Agreement regarding the maintenance of Foundation funds.
  • Although the Foundation Agreement stipulates that the Library/Museum can only spend interest earned on Foundation funds, the Library/Museum violated this stipulation by spending $138,458 of principal.
  • While the Board reviewed bills prior to payment, it allowed them to be paid late due to the lack of available cash.
  • We found weak controls over cash receipts.

Key Recommendations

  • Provide adequate oversight of the Library/Museum financial activities, including adopting and monitoring budgets, reviewing bank statements and reconciliations, and evaluating financial statements and cash flow forecasts.
  • Comply with the Foundation Agreement and not use the principal of the Foundation investment account.
  • Require a monthly cash flow statement to assess the amount of cash available to pay Library/Museum expenditures.
  • Require that all receipts be supported with a manual press-numbered receipt.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236