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Audit Objective

Determine whether the Board provided adequate oversight of non-payroll disbursements.

Key Findings

• Online payments totaling $65,456 initiated by business office staff were not included on the warrants or audited by the Board.
• Of the 76 claims we reviewed that were paid in advance of audit, 26 totaling $59,691 were not of the type legally permitted to be paid in advance.
• The Treasurer did not maintain custody and control of her signature stamp and check signatory policies were not followed.

Key Recommendations

• Develop policies and procedures for banking activities and online purchases.
• Ensure that all disbursements are audited by the Board, listed on the warrants and entered into the accounting records.
• Ensure the Treasurer maintains custody of her signature stamp and that bank account signature cards comply with Library policy.
• Establish and maintain a list of authorized credit card users.

Library officials disagreed with certain aspects of our findings and recommendations, but indicated they have initiated corrective action. Appendix B includes our comments on issues raised in the Library’s response letter.