Purpose of Audit

The purpose of our audit was to evaluate the internal controls over the Library’s cash receipts for the period January 1, 2013 through May 31, 2014.

Background

The Johnstown Public Library is a Municipal Public Library located in the City of Johnstown, Fulton County, which serves approximately 17,050 residents in the City and surrounding area. The Library, part of the Mohawk Valley Library System, is governed by a 15-member Board of Trustees appointed by the City Mayor. Budgeted appropriations for 2014 totaled approximately $405,000.

Key Findings

• For cash collections that are not recorded in the circulation system, the Library does not use a cash register, maintain a log or issue duplicate receipts.
• Cash collections are stored in an unlocked cabinet and various collections were not deposited in a timely manner.
• The Budget and Finance Committee does not review or audit monthly cash receipts records.

Key Recommendations

• Establish controls at cash collection points for greater accountability.
• Establish procedures to ensure that cash and checks are stored in a secure location until deposited and to require that receipts are deposited in the bank in a timely manner.
• Perform an audit or review of cash receipts on a monthly basis.