Purpose of Audit

The purpose of our audit was to examine and evaluate the Library’s processes for recording, securing and depositing over-the-counter cash receipts for the period January 1, 2014 through April 27, 2015.

Background

The Seymour Public Library District is located in the City of Auburn, Cayuga County and serves the City of Auburn, Town of Owasco and the portions of the Towns of Sennett and Fleming that are within the Auburn Enlarged City School District. The Library is governed by an elected nine-member Board of Trustees. Budgeted appropriations for 2015 total approximately $900,000.

Key Findings

• The Board has not established policies and Library officials have not documented procedures for handling and recording over-the-counter cash receipts and waiving fines and fees.
• The Director does not generate a daily cash report from the System to assist in reconciling daily fine and fee collections or to review the waived transactions.
• The librarians, opening staff, closing staff and management all have access to the safe.

Key Recommendations

• Ensure comprehensive written policies and procedures are established that provide adequate guidance and internal controls over collecting, remitting and depositing over-the-counter cash receipts, and waiving fines and fees.
• Require that the Director generate a daily cash report from the System and reconcile collections daily.
• Restrict access to the Library safe to management or a limited number of authorized employees.