Purpose of Audit

The purpose of our audit was to examine the Library’s budgeting practices and cash receipts procedures for the period July 1, 2012 through July 31, 2013.

Background

The Center Moriches Free Public Library is a school district library located in Suffolk County and is governed by the Board of Trustees which consists of five elected members. The Library’s operating expenditures totaled $2.3 million for the 2013 fiscal year.

Key Findings

• The Board has adopted budgets that consistently underestimated revenues and overestimated expenditures.
• The Board accumulated an unexpended surplus fund balance equivalent to an entire year’s budget.
• The Library does not have formal policies or procedures to ensure accountability for the cash receipts process.

Key Recommendations

• Develop and adopt realistic budgets.
• Monitor fund balance and develop a plan to use unexpended surplus funds in a manner that benefits the Library’s taxpayers.
• Establish and enforce formal cash management policies and provide additional staff training on cash collection