Page 152 - DLIS003_LIBRARY ADMINISTRATION AND MANAGEMENT

Unit 8: Library Accounting

Notes
The following are items that you should have ready in advance for the auditors.
Minute Book

It is a good practice to have an index to the minute book including all resolutions,
each with a brief description.
Be sure that the election of the fiscal officer and the appointment of the deputy fiscal
officer and their salaries are authorized by resolution and that the bond coverage
goes from organizational meeting of the current year to the organizational meeting
of the following year.
Resolutions must be passed to authorize the fiscal officer to pay all necessary bills,
establish funds, and make investments for the library.

Resolutions must be passed accepting any donations and gifts and these amounts
must accurately reflect those recorded in the receipts ledger.

If interest on investments is to be posted to a fund other than the fund from which it
is earned, the board must pass a resolution to that effect. Currently, the Auditor of
State’s opinion on this is that interest should only be posted to the General Fund, but
may later be transferred to another fund by board resolution.

Make certain that all appointments, merit increases, vacation, and sick leave
authorizations agree with your payroll entries.
All minutes must be signed by the library board president and by the library board
secretary (or those persons acting in their capacity in case of absences) to attest to
their accuracy.
Narrative on Procedures
It is suggested that you write a formal narrative for step-by-step procedures for
accountability regarding investment procedures, handling of receipts, expenditures,
inventory, and payroll. Include such information as:
Investments
Explain how you contact financial institutions regarding becoming a
depository for interim or active funds, who decides how funds will be invested,
etc.

Have an investment policy.
Receipts
Explain procedures that persons handling the money must follow.
If copy machines are used by the public and are coin-operated, explain how
you reconcile money collected with number of copies made.
Account for any other receipts, such as gifts and state revenue, and report who
receives the money and how it is recorded.

Expenditures
Explain step-by-step procedures including who initiates the expenditure and
approves requisitions, assigns purchase order (P.O.) numbers, encumbers,
types (or prints) the P.O., approves payment, pays bills, and the filing method
for checks/vouchers and invoices.
Contd...

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