Budget and Finance Policy


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Overview
The library budget is a financial expression of the library’s objectives. Before a budget can be formulated, the plan for library services must be developed and the goals and objectives established. It is the responsibility of the library board to provide for an adequately funded public library.

The library board has the responsibility to work for an increase in the tax rate when the existing budget is inadequate to meet the library’s mission to provide the best possible service to the people in the library’s taxing district. The availability of funding from gifts, endowments, and other citizen support should not be allowed to replace local taxes levied for the library. The availability of funding from grants, state aid, or its capital improvement fund should not be allowed to replace local taxes levied for the library.

The library board has authority over the library budget by statute, and the trustees should ensure that funds are allocated according to budget guidelines. The library board should budget to a plan rather than planning to a budget.

The library director should review the library’s funding allocations at the end of each month to make sure that the library is getting all the monies that it is legally entitled to under the current mill levy and any other allocation from the local government. Late or missed allocations shall be addressed as quickly as possible.
The contracted accounting firm should assure that a monthly financial report is prepared for the director and library board. This report should include:
• A list of current monthly expenditures
• A list of current monthly income
• A total of current monthly expenditures by budget line item category
• The balance remaining for the fiscal year in each budget line item category

Annual Budget
The library director should initiate a planning process to develop an annual budget to provide for the library’s anticipated programs and services based on an analysis of the community’s needs and demands.

The library director shall prepare a draft budget for the next calendar year during the month of April in the current year. The drafted budget shall be presented to the board during their annual meeting in April. The board shall review the budget and make any suggestions for change. The budget shall be reviewed again at the May board meeting and shall be voted upon.

After the budget has been approved by the board, the director shall prepare the budget and an accompanying letter to the Hiawatha City Commissioners Board no later than June 1st.

The library shall maintain its eligibility for the Kansas State Aid program. To maintain eligibility, the total amount of property taxes, back taxes, motor vehicle taxes and local ad valorem tax revenue funds for the coming year must be budgeted to equal or exceed the actual dollars for the preceding year.

Financial Records and Periodic Review
Financial records shall be organized in a logical fashion. Digital accounting records shall be maintained by a CPA’s office using accounting software. The board treasurer shall work with the library director to periodically review financial records. The board treasurer and library director will provide any and all documents requested by the accounting firm contracted by the City of Hiawatha for yearly audit purposes.

Petty Cash
The library shall maintain a petty cash fund in order to make change to the public for services rendered (such as copies, fax, prints, etc.). Library staff shall ensure the money received is entered correctly into the cash register. The director or assigned staff member shall reconcile the petty cash fund weekly, keeping accurate and detailed records, and make any necessary bank deposits or withdrawals to keep the petty cash fund in a proper working amount.

The cash register shall be locked during the library’s closed hours. Only library staff and library board members shall have access to the petty cash fund.

Fundraising and Donations
The library reserves the privilege of using cash donations and memorials in a manner that will best serve the operation of the library and its service to patrons. If cash donations are made with requests for specific materials to be purchased, the Materials Selection and Collection Development Policy shall apply.

Exceptions to the donation and gifts policy may be approved by the director. Any type of gift not mentioned above should be discussed with the library director prior to acceptance. The library director, library staff, or library board shall write thank-you notes to donors, as appropriate. Memorial donations (cash or tangible items) may have either a name plate made for the memorial plaque or a plate made to affix on the donated item (as approved by the director). The library will pay for the expenses to make such plates and plaques, within reason, and as approved by the director. Fundraising will be handled by the director and possibly the Friends of the Library.

Capital Improvement Fund
The Morrill Public Library has established a capital improvement fund by resolution on September 13, 2004 and shall maintain this fund in perpetuity.

All money credited to such fund shall be used by the library board for the purpose of improving, furnishing, equipping, remodeling, making additions or major repairs to the library.

The funds shall not be used for collection and program development, supplies, salaries, or general operations or maintenance of the library.