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Audit Objective

Determine if the Board of Trustees (Board) effectively manages the Library’s fund balance.

Key Findings

• The Library’s fund balance policy does not address the maintenance of surplus fund balance, how the Board expects to use surplus funds and the timeframe for doing so.
• As of 2016-17 fiscal year-end, the level of unrestricted fund balance retained by the Library was $4.7 million or 72 percent of operating expenditures, and the Library has no plan for the use of these surplus funds.

Key Recommendations

• Amend the Library’s policy to address the maintenance of surplus funds, how they will be used and the timeframe for doing so.
• Develop a plan to use unexpended surplus funds in a manner that benefits the Library’s taxpayers.

Library officials disagreed with certain aspects of our findings and recommendations. Appendix B includes our comments on issues raised in the Library’s response letter.